In thoroughbred horse racing, equivalent odds refer to the mutuel price horses would pay for each $1 bet. Equivalent odds represent the payout amount per dollar wagered in the pari-mutuel betting system, rather than using the traditional fractional odds format (like 5-1 or 7-2). This format shows bettors exactly what they would receive for every dollar they wager on a particular horse.
How Equivalent Odds Work
Unlike traditional fractional odds that show profit relative to stake, equivalent odds show the total return (including the original bet) per dollar wagered. For example:
If a horse has equivalent odds of $3.50, a $1 bet would return $3.50 total
If a horse has equivalent odds of $8.00, a $1 bet would return $8.00 total
Relationship to Pari-Mutuel System
Equivalent odds are directly tied to the pari-mutuel wagering system used in horse racing, where all bets of a particular type are placed into separate pools. The final payout odds are determined by:
- The total amount bet in each pool
- The percentage of money bet on each horse
- The track’s takeout percentage