To keep things fair, bookmakers apply a Rule 4 deduction, reducing winnings to reflect the altered odds. In this blog, we'll explore what Rule 4 deductions are, why they're necessary, and how they work.
Rule 4 is a standard deduction rule in horse race betting that adjusts the winnings of a bet when a horse is withdrawn from a race. This adjustment is made because the chances of the remaining horses winning improve when a competitor is removed. Essentially, an amount of money is taken out of your potential winnings to balance the effect of the non-runner.
When a horse is withdrawn from a race, the odds of the remaining horses winning are improved. If no deductions were made, bettors on the remaining horses would receive an unfairly high payout. Rule 4 ensures that the betting system remains fair and balanced by adjusting the winnings according to the odds of the withdrawn horse.
Here is the standard Rule 4 deduction table that shows the percentage deduction based on the odds of the withdrawn horse:
Let's go through an example to understand how Rule 4 deductions are applied:
Suppose you placed a £10 bet on a horse named Thunderbolt at 5/1 odds. The potential winnings would be £50 (£10 x 5). However, just before the race, a horse with odds of 4/5 is withdrawn. According to the Rule 4 table, this results in a 55% deduction.
Here's the step-by-step calculation:
1. Original Potential Winnings: £10 bet at 5/1 odds = £50.
2. Deduction Percentage: 55% for a horse with 4/5 odds.
3. Amount Deducted: 55% of £50 = 0.55 x £50 = £27.50.
4. Adjusted Winnings: £50 - £27.50 = £22.50.
So, instead of receiving £50, you would receive £22.50 after the Rule 4 deduction is applied.
Some bettors believe that Rule 4 deductions are a penalty. However, this is not the case. The deductions are necessary adjustments to maintain fairness in the betting market after the withdrawal of a horse.
Not all withdrawals result in Rule 4 deductions. If the withdrawn horse's odds are sufficiently high (over 14/1), no deduction is applied because the impact on the overall race odds is minimal.
Stay Informed: Always keep an eye on race entries and withdrawals. Being aware of non-runners can help you understand potential Rule 4 deductions.
Understand Odds: Familiarise yourself with how odds work and how they influence potential payouts.
Check Terms and Conditions: Different bookmakers might have slight variations in how they apply Rule 4. Always check the specific terms and conditions of your bookmaker.
Rule 4 deductions are an essential aspect of horse racing betting, ensuring fairness when a horse is withdrawn from a race. By understanding how these deductions work and why they are necessary, you can make more informed betting decisions and avoid surprises when it comes to your payouts.
Always check that the number of runners are the same at the bookmaker and Betfair.
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