Takeout rates in horse racing are a crucial factor to consider when placing bets. These rates represent the portion of the bet that the racetrack takes before paying out winnings. The funds generated from takeout rates help maintain and operate the racetrack. However, high takeout rates can impact a bettor’s bottom line. Therefore, it’s essential to be aware of the takeout rates at a specific racetrack and incorporate them into your betting strategy and budget.

How Takeout Rates Vary

Takeout rates in horse racing differ depending on the state, racetrack, type of bet, and the race itself. Generally, larger odds come with higher takeout rates. Some racetracks may offer discounted rates for multiple bets, such as pick 5 or 6s. To determine the takeout rate at a particular track, you’ll need to conduct research, as this information is not readily advertised.

Takeout Rates by State

Each state sets its takeout rates, which remain consistent across all racetracks within the state. These rates can range from as low as 15.43% in California to as high as 35% in Arizona. Some states have different rates depending on whether the race involves Thoroughbred horses.

Here is a summary of the takeout rates for different states:

Massachusetts

A 19% takeout rate on win-place-show wagers and a 26% takeout rate on exotics.

Michigan

A 17% takeout rate on straight wagers and up to 28% on multiples.

Minnesota

A not-to-exceed 17% takeout rate on win-place-show wagering and a 23% takeout rate on exotic wagering.

Montana

A 20% takeout rate on straight wagers and up to 25% on exotics.

Nebraska

A not less than 15% or more than 18% takeout rate on straight wagers and up to and including 24% on exotic wagers.

New Hampshire

A 19% takeout rate on win-place-show wagers and a 26% takeout rate on multiple wagers for Thoroughbreds.

New Jersey

A 17% takeout rate on straight wagers, 19% on two-horse selections, and 25% on three-or-more-horse selections.

New Mexico

A 19% takeout rate on win-place-show and 21%-25% on exotic wagers for Class A tracks. For Class B tracks, the takeout rate is 18.75% to 25% on win-place-show and 21% to 30% on exotic wagers.

New York

A 14% takeout rate on straight wagers, 17.5% on multiple wagers, 25% on exotics, and 15% on pick 6 with no carryover – 25% with carryover at NYRA tracks. For Harness, the takeout rate is 18% on straight wagers, 20% on multiple, and 25% on exotics.

Ohio

An 18% takeout rate on win-place-show wagers and 22.5% on all other wagers.

Oklahoma

An 18% takeout rate on win-place-show wagers, 20% on multiple-horse wagers, and up to three-race wagers. For multiple race wagers involving more than three races, the takeout rate is 25%.

Oregon

A 19% takeout rate on wagers with one wagering interest, 22% on wagers with two or more wagering interests for commercial meets, and up to 22% at fairs and non-profit meets.

Pennsylvania

A 17% takeout rate on regular wagering pools, 19% if the average daily handle is less than $300,000, 20% on exactas, daily doubles, quinellas, and 26-35% on trifectas.

Texas

An 18% takeout rate on regular wagers, 21% on two-horse wagers, and 25% on wagers involving three or more horses.

Virginia

An 18% takeout rate on straight wagers and 22% on all other wagers.

Washington

A 16.1% takeout rate on win-place-show wagers, 22.1% on all other wagers (1.1% less for non-profit meetings).

In conclusion, knowing the takeout rates in horse racing is essential for any bettor. Use this guide as a starting point, but complete your research to ensure you know the exact takeout rate a track will charge for your next bet. By being informed about takeout rates, you can make more informed decisions and potentially increase your winnings.