Horse racing deductions can be confusing and frustrating for punters, but an understanding of the concept is a key element of horse racing betting.
What is a Deduction in Horse Racing?
A deduction is a reduction in fixed odds to compensate for a scratching.
For example, look at this hypothetical market:
- Winx ($1.10)
- Silver Sovereign ($7)
- Big Macca ($10)
- Water Works ($21)
- The Old Grey ($51)
If Winx was to be scratched, obviously the chances of every other horse winning are massively enhanced – Silver Sovereign’s price should be closer to $2 than $7.
Therefore, a deduction is applied to all fixed odds bets to reflect that Winx is no longer in the field and that bets on Winx have to be refunded.
Every bookmaker has their own deductions, but the scratching of a horse priced $1.10 would likely necessitate a 72c (or 72%) deduction.
The shorter the price, the larger the deduction that will be applied.
To calculate the impact of that on the price, multiply the odds by $1.00 less $0.72 ($0.28).
For example, 7.00 x 0.28 = ~$1.95.
If a runner at $2.00 is scratched, the rest of the field will have approximately $0.40 (40%) deducted from their price while a scratched runner at $50 will have no impact on the rest of the field.
When Do Deductions Apply?
Deductions can apply to all fixed odds bets placed on final field markets. These are the markets that are set after the final field is declared for a race. Most of the markets that you see on a bookmaker’s website are final field markets.
Final field markets when displayed will have details such as the barrier draw and the name of the jockey engaged to ride.
Deductions will not apply to tote bets as the total pool will adjust to compensate for the scratching of the horse(s).
The other kind of markets available on horse racing are All In, or “Futures” markets. These are markets that are offered well in advance of the running of a race, before the final field is declared, and deductions do not apply to these markets.
However, if you back a horse that does not take its place in the field, the bet loses and is not refunded.
For the Melbourne Cup, bookmakers will open a market for next year’s race almost as soon as it has been run, but most Group 1 races will be opened between a few weeks and a few months out, depending on its significance.
All In markets are also typically offered on each weekend’s feature races from the Monday prior, once nominations have been published. It can be a good opportunity to get a big price, but be careful because if a horse does not run, you will lose your money.
Acceptances for Saturday races come out on the Wednesday morning prior, and bookmakers usually have final field markets available for all of these races by late afternoon on Wednesday.
Be sure to check out Betseeker’s free racing tips for best bets each day of the Australian racing calendar.
