How to bet this year’s Kentucky Derby

Sunday, May 1, 2016 | 2 a.m.

What’s a day at the races without betting the ponies? Horse racing and betting are a time-honored pair intrinsically linked since the early days of organized racing in the 1800s.

Gambling on horses may have been one of the first forms of legal sports betting, and it’s unlike betting any other sport. For those unfamiliar, placing these wagers might seem intimidating, but with the Kentucky Derby approaching on May 7, there’s no time like the present to learn.

Three main bets

There are many ways to bet on horses, but these three standard wagers are ideal for beginners:

Win: The horse you bet has to win the race for you to win.

The “win” wager has the highest payout of the three but is the most difficult to pick. If you’re feeling strongly about your pick but don’t want to risk it all on betting on a “win,” an “across the board” bet is a good alternative.

Place: The horse you bet can finish in first or second place for you to win.

Show: The horse you bet can finish in first, second or third place for you to win.

A combination approach

Across the board is like placing three separate bets (win, place and show) on the same horse at once. The horse you bet can finish in first, second or third place, and your payout changes depending.

If your horse finishes first, you win the “win,” “place,” and “show” wager, maximizing your earnings. If your horse comes in second, you win the “place” and “show” wager, and if your horse comes in third you only win the “show” wager.

Complicated betting options

Beyond the basics, there are multiple exotic bets available. These bets are more complicated because they involve wagering on more than one horse.

Exacta: You bet on two horses to finish in first place and second place in the correct order.

Trifecta: You bet on three horses to finish in first, second and third place in the correct order.

Superfecta: You bet on four horses to finish in first, second, third and fourth place in the correct order.

Boxing the bet: You’ll also have the option to “box” your wager when betting an exacta, trifecta or superfecta. This means that you still pick multiple horses, but it doesn’t matter what order they finish in. If you bet an exacta box, you’re betting on two horses to finish in first and second place, in either order.

Some sports books offer a “quinella” wager, which is betting on two horses to win first and second, in either order. Though this is the same basic wager you’d make for an exacta box, the quinella usually has a lower minimum bet and a lower payout.

If you’re new to exotic wagers and want to give it a try, boxing your bet can be a good strategy with an exacta — or even a trifecta, if you’re really feeling bold.

In horse racing, you bet against other bettors, not the house

Typically at the sports book, the odds are set by the bookkeepers, and any bet you place is a bet against the house. However, horse racing uses the pari-mutuel wagering method, which means that instead of betting against the house, you bet against other bettors.

Pari-mutuel is a French term meaning “mutual betting,” and is a system wherein the odds are determined using the collective bets coming in. The odds for each horse are dependent on how much money is being wagered on it, as it compares with the total wager pool. Basically, a horse’s odds get worse the more money is placed on it.

Because of this, the odds are constantly in a state of flux as people continue to bet. You won’t know the final odds of your wager until the window closes and the race begins. If you’re betting early, don’t make any bets based purely on favorable odds because they will likely change.

Tip: There are 20 horses racing, so don’t place too many bets on just one or two horses — especially if you’re a beginner. Making multiple, smaller wagers on a variety of horses can increase your chances for winning at least one of them.