Rule 4 Deductions in Horse Racing Betting

Have you ever placed a winning bet on a horse race, only to find your payout wasn’t quite what you expected? You’re not alone. This adjustment is due to Rule 4, a crucial regulation in horse race betting. Imagine you’ve bet on a horse to win, but just before the race, one of the competitors is withdrawn. Suddenly, the odds of your horse winning improve – and so does the potential payout for everyone else who bet on the remaining horses.

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.

What is Rule 4?

Rule 4 is a standard deduction rule in horse race betting that adjusts the winnings of a bet when a horse is withdrawn from a race.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.

Why is Rule 4 Necessary?

When a horse is withdrawn from a race, the odds of the remaining horses winning are improved.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Rule 4 ensures that the betting system remains fair and balanced by adjusting the winnings according to the odds of the withdrawn horse.

How Rule 4 Deductions Work
Deduction Table

Here is the standard Rule 4 deduction table that shows the percentage deduction based on the odds of the withdrawn horse:

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Calculation Example

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 However, just before the race, a horse with odds of 4/5 is withdrawn.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.

Common Misconceptions
Misconception: Rule 4 is a Penalty

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.

Misconception: All Withdrawals Lead to Deductions

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.

Practical Tips for Bettors

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.

Top tip

Crafty bookmakers will often leave a horse on the racecard even though they know it is a non-runner. For example, the price of the horse may be 12/1 at the bookie and 10/1 at Betfair. That looks like great value but only if you are comparing like with like.
If the 4/1 favourite is a non-runner which has already been removed from the market at Betfair but not removed by the bookie, it could actually be terrible value. The real price at Betfair is 10/1 but the bookmaker price is not 12/1 as they are presenting on their racecard. It is actually 9.6/1 because they already know they will be applying a 20p rule 4.
Conclusion

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.

Don’t worry - at Tilt The Odds, we do all that for you. We won’t suggest a bet unless we’ve already checked!

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