When betting on horses, people know that they need to indicate the winner, but there are different types of horse betting. Bookmakers and those who operate over the Internet in particular allow their members to wager on different markets and depending on the outcome, they can collect more or less money.
They are also presented with the option of competing against the house or amongst themselves, in the case of betting exchanges and each type of wager has its advantages and shortcomings.
What is Parimutuel betting
This is by far the most popular type of wagering, especially among UK residents, with players competing against each other instead of trying to defeat the bookmaker. In the absence of any taxes or hidden commissions, players know that at the end of the day someone will emerge victorious and it won’t be the house. There are differences between the Parimutuel betting and the standard fixed odds wagers, with the latter having the advantage of allowing players to know from the beginning how much they could win.
Common types of horse betting
The most straightforward bet is on the winning horse, which just as the name suggests requires players to correctly predict the one that crosses the finish line first. The other choice is to bet on the runner-up as well, so you win if your chosen horse finishes in the first or second place.
The Each Way wager is slightly different because players need to double their investment but in exchange they cash in if the horse finishes on one of the two places. In the same category, there is the Swinger wager, which enables players to select two horses that compete in the same race, therefore the winning combinations are more numerous. The condition is for both horses to win a placing in the competition.
Quad Pot implies that players choose a horse for the third, fourth, fifth and sixth races, while the Scoop Six bets are aimed exclusively at those events scheduled on Saturday. On the other hand, the Place Pot covers all British races and is a winning bet if the horse places in each of the six races. Trifecta is one of the types of horse betting that requires the players to correctly choose the runners in the correct order. By comparison, Exacta only demands players to indicate the names of the first two horses, in the right order.
Reed more in wikipedia : http://en.wikipedia.org/wiki/Horse_racing#Types_of_bets