What does each way mean in betting and what are fixed odds? Gambling terms explained

HORSE racing is one of the most popular sports to bet on.

Here, we look at some of the deals you may be offered by bookmakers, and how they pay out.

1

What is an each way bet?

An each way bet is an offer given by bookmakers which consists of two separate bets, a win bet and a place bet.

For the win part of the bet to give a return, the selection must win the event.

And for the place part of the bet to come in, the selection must either win or finish in one of the predetermined places for the event, such as second, third, fourth or fifth place.

The odds paid on the place part of the bet are usually a fraction of the win odds.

The stake you put on is split between the win bet and the place bet.

For example in horse racing you might place £10 each way on a horse to win.

This would mean you put £5 on it to come first and £5 on it to come in any of the places.

If the horse you have put money on doesn't win, you will not receive the win part of the bet, but receive the place part of the bet as long as the horse finishes in the first four.

In horse racing the "place" is set strictly by the Jockey Club and will depend on the size of the field (that is, how many horses are running).

So that the "place" may be just 1st and 2nd, 1st 2nd and 3rd, or even 1st 2nd 3rd 4th or 5th on a big race like the Cheltenham Gold Cup or Grand National, and may pay ​1⁄4 or ​1⁄5 the odds.

What are fixed odds?

Fixed odds betting is a type of bet where the odds of the outcome remain the same.

With fixed odds betting you have taken a specific price or betting odds when you struck the bet.

That means if you take a price on a football team or a horse it will always remain the same.

In the case of horse racing if you take a fixed odds price on race day there may be a deduction in the event of a horse subsequently not running in the race.

Machine based betting such as slot machines also work on a fixed odds basis.

What is lay betting?

Lay betting is an option on gambling exchanges like Betfair where punters can play the bookmaker, offering odds to sell a bet instead of to back a bet.

It is one component of matched betting, where punters both back and sell bets on the same game to guarantee winning.

It can also be known as matched betting, arbitration or arb betting.

What is a sweepstake?

A sweepstake is a form of betting where the odds are divided between the bettors.

The competitions are often undertaken during large horse races like the Grand National or tournaments like the World Cup.

Punters will generally pay in the same amount of cash regardless of the likelihood of their team or horse winning.

All the stakes will be pooled for winnings which will be divided up between the winner, and may also offer small payout to second and third place.