Race track odds are determined by several different factors. By definition, odds reflect how much a horse is favored to win, and subsequently, how much the winner of the wager can win. The odds represent the public's perception, or how much they believe in a horse, in conjunction with the horse's ability to win. The more money bet on any one horse reduces the odds and thusly, the payout sum per winner.

There are straight bets and exotic bets, each with different odds. The most common odds displayed, however, are the straight "Win" odds, meaning those that apply to a first place finish by the horse you choose. In addition, the win odds are usually based on what a two-dollar bet would return on a winner.

The house sets odds, unless pari-mutuel betting rules are used. Pari-mutuel betting utilizes a computer to total all bets. Then, it deducts operator commission and taxes and determines the final payout and odds statistics with the remaining pool. In this system, the bettors, not the house, essentially determine odds.

The wagers in this setting are against each other, as opposed to against the operator (a.k.a. "the house"). Thus, the winning amount is calculated by dividing up the number of winning tickets instead of paying straight odds. At VIPhorses, the pari-mutuel system is used, allowing more money to enter into each pool as more wagers are placed. This allows customers to increase their odds and payouts at every turn. Sign up with VIPhorses today for the best odds available online.