An extra place offer is where we gain an advantage from a Bookmaker offering to pay out on 1 extra place than usual. Depending on the size of the field they may usually offer 3,4 or 5 places.
For this example, let’s say it is a large field and they would usually pay out 5 places. As they are running the promotion for an ‘Extra Place’, they will actually pay out top 6 places as long as you have staked Each Way. This means if your horse finishes in the top 6, you are paid out as a winner!
The Betting Exchange will never offer such promotions, keeping to the 5 places, meaning that there is a gap in the market for insane profitability.
Read this a little slow now as it can be confusing first time…
You have the opportunity here to win both your back and your lay bet. Bookmaker pays 6 places, exchange pays out on 5 places.
IF the example horse finishes 6th, you will win the back bet, aswell as the lay bet. Double winner.
It’s not 6 places everytime, it’s just an example on how this offer is profitable.
Half of the stake is on the horse to win, whereas the other half is on the horse to place.
Placing is usually finishing Top 3, but varies depending on the size of the field running.
The Horse to win part of your bet is paid out at normal odds, whereas the Place Odds are usually 1/4 odds payout. For example if we back a horse at 9/1 (10.0) and it was to place, we would receive a quarter of the odds, so we would get 2.5 odds.[/vc_column_text]
How can I Calculate these?
The slightly harder part is the place part of the bet. The odds for this often are not actually displayed on your Betslip, so you need to work out what the back odds are. The bookie will usually display their each way terms somewhere on the page – either in the betslip or in the description of the race.
Each way horse bet
So in this betslip from William Hill, the place terms are displayed next to the Each Way tickbox. (1/5, 1-3). The 1/5 means that the odds given on the place bet are 1/5 of the Win price.
To work out the place price then, we subtract 1 from the original odds, divide it by 5, and then add 1. So if the “Win” odds were 8, we subtract 1, giving us 7. We then divide 7 by 5, which is 1.75, and then add 1 back on, giving us 2.75. The Divide is by 5 for this as payout is 1/5. if it was 1/4 you would divide by 4, and so on.
We can now calculate the lay bet as normal, with a stake of £10 and back odds of 2.75. We can find the lay stake in the Betfair “Place” market for the race. (You will see “Win” and “Place” in the menu to the left on Betfair – select Place).
One thing you NEED to check is the place terms. On William Hill the place terms are 1-3 (so 3 paying 3 places). The Betfair market will also show “3 to be placed” at the top of the market. The number on Betfair MUST be the SAME or LOWER than the bookie. If the Betfair market is paying MORE places, then you are putting your funds at risk.
For example if Betfair listed “4 to be placed” but the bookie was only paying out 3 places, then if your horse came 4th you would lose BOTH bets.[/vc_column_text]
What are the benefits of an Each Way Bet?
The biggest reason you will place each way bets is to try and take advantage of extra place offers. In these offers, the bookie will be paying more places than usual. For example, on the Grand National this year, Betvictor played 6 places (instead of 4) and almost every other bookie paid 5 (instead of 4).
What we can do to take advantage of this offer is back and lay an each way bet (as described above) and then if the horse finishes in the extra place (for example, 5th) you would win you place bet at the bookie (because they’re paying 5) and your lay bet at the exchange (because they’re only counting the top 4.)
Needless to say, this can lead to some big payouts. Extra place offers are actually really simple to do – you simply back and lay a horse each way and then hope it hits 5th. There are, unfortunately, a few catches.
The biggest catch is that the chance of hitting the extra place is generally very small. Again, using the Grand National this year as an example; there were around 40 horses in the race and you had to try and pick the horse that came 5th (or 6th as well on a couple of sites.)
The other catch is that, whilst extra place offers are not complicated, they can be a fair amount of work. Whilst placing Each Way bets is fairly simple, finding good matches can take time and often involve a fair amount of work.
However, these offers are well worth doing still. The best way to counter the small chance of hitting the extra place is to use lots of different bookies. For the Grand National, every single bookie (barring William Hill for some very, very strange reason) was offering at least 5 places. By covering a couple of horses on each one, you could cover 90% of the field. All of a sudden, your chances of hitting 5th are much greater. The odds may not always be as good as you want, but you have two options. The first is to simply keep checking throughout the day. Generally you’ll be able to find a match at some point for each horse. The second is to think about your qualifying losses as a total, not place by place. Because often you will find place arbs, these can often level out your qualifying losses as a total. It’s also worth noting that you will pay less commission than you expect due to the fact you will only pay commission on net winnings (on Betfair, Smarkets and Betdaq) – so your total is offset by any winners you may hit.
I’d recommend only doing 2 horses per bookie normally, although for the big races and tournaments (the Grand National, the Masters) it is possible to do more. One of the benefits of doing these offers is that liability is combined on the exchange. This means you don’t need as much in your account as you think.[/vc_column_text]
For a Qualifying loss of less than £1 you can try and have your shot at a big winner! I made £1100 from the Grand National, as Goonyella romped home in 5th place. Bookies paid out on 5, Exchange on 4!
It sure felt weird not shouting for it to win… but it beats gambling as it’s risk free!
Make sure you take these opportunities when they come around, usually on the big horse festivals, they can lead to enormous profits.[/vc_column_text]