Understanding Bad Each Way Races

An each-way punt remains one of the most popular wagers in horse racing. On any race day, fans up and down the country pick out their each-way singles and multiples, spurred on by the knowledge that their fancy “only” needs to finish in the placed positions to secure a payout.

Always keen to satisfy demand, bookmakers are only too eager to accept each way wagers, or at least they are most of the time. Lying in the sea of horse races, which make up the British racing season, are contests that the good old bookies would much rather you didn’t place an each-way bet on at all. As with most things in betting, if the bookmakers don’t want you to do it, you should probably consider disappointing them.

Such is their dislike for this type of race that the layers group them together in a box labelled “Bad Each Way Races”. Of course, that term is relative. Bad for the bookie = Good for the punter.

Here, we look at a category of race much targeted by those seeking to profit from their racing endeavours and much loathed by the odds compilers.

What is a Bad Each Way Race

It is fairly quick and easy to identify a Bad Each Way event. You are seeking any race containing a short-priced favourite, preferably with eight or nine runners.

Of course, in any race with a prohibitively short price favourite, the other runners in the line-up must be available to back at correspondingly bigger prices to create a fair betting market. This is no problem from a win perspective. If a bookmaker lists an outsider at 33/1 in a field containing a 1/4 favourite, the outsider probably is around 33/1 to actually win the race.

The issue arises due to the rigid each-way terms which apply to all races regardless of the price of the favourite. In the UK and Ireland, these each-way terms are as follows:

This arbitrary system of calculating each way returns can create a situation where the fractional place terms do not accurately reflect the horses’ chance of hitting the frame. Of course, we could only know this if there was a way to determine the true odds of a horse finishing in the placed positions.

Whilst it is impossible to be 100% accurate with any odds in horse racing, the Place Only markets on the betting exchanges provide an excellent guide as to what these true place odds should be.

Let’s look at an example race to illustrate the discrepancies between the place odds offered as part of an each-way bet and the Place Only market on the betting exchanges.

What is Each Way Betting?

2023 Dewhurst Stakes

Whilst there are 100s of Bad Each Way races at tracks big and small, a high-profile example came in the 2023 edition of the Group 1 Dewhurst Stakes at Newmarket:

For seven of the eight horses in this event, the place odds available via the bookmakers were bigger than those in the Exchange Place Only market. Having outlined that the exchange market provides the best guide to the likelihood of an event occurring, all of these odds are bigger than they should be. And when the odds are too big, we should bet.

A Flaw in the Cunning Plan

In a race with a similar shape to the above, the best way to target a Bad Each Race is to back a runner who offers place value AND is likely to hit the frame. The obvious example in the Dewhurst is the second favourite, Iberian. Place Odds of 1.80 are twice as big as they should be, and Exchange Place Odds of 1.40 suggest the horse has a 71.40% chance of finishing in the placed positions.

And then we run into our first problem. When betting each way with a bookmaker, we must place an equal stake on the horse to win and place. It’s all very well that 1.80 represents great value, but unless Iberian masters the red hot favourite, we will lose our win half of the bet and end up down on our investment - £10 each way @ 4/1 (1/5 odds) costs £20 but returns £18 if the horse only places.

How to Benefit from Bad Each Way Races

But don’t give up just yet. There are ways to turn these value each-way terms to our advantage.

Secure a Profit on the Betting Exchanges

This method won’t always be available, but it is worth pouncing on when you spot the opportunity. Our goal is to back a horse each way with a bookmaker and lay off on the betting exchanges. To successfully execute this wager, we need the exchange win price and bookmaker price to align closely.

Sticking with our example of a £10 each way bet on Iberian ay odds of 4/1 (5.0). If we can lay Iberian to win at 5.0 and to place at 1.40, we are guaranteed to at least break even, whatever the outcome.

• Iberian Wins - £4 total profit: £40 profit from Bookmaker win bet. £40 loss on exchange win lay. £8 profit on bookmaker place bet. £4 loss on exchange place lay
• Iberian Places - £4 total profit: £10 loss on bookmaker win bet. £10 Profit from exchange win lay £8 profit from bookmaker place bet. £4 loss on exchange place lay
• Iberian Finishes unplaced - Break Even: Losses on bookmaker bets are recouped via the win and place lay bets on the exchanges

Multiply Your Edge

Consider we find two value each way bets at odds of 4.0, equating to place odds of 1.60. A £10 each way bet on either would return £16 if the horse only placed, resulting in a £4 loss. However, if we instead place a £10 each way double, the return would be £25.60 if both runners place, i.e. a profit of £5.60.

Whilst coming with additional risk, many punters enjoy placing each-way doubles in bad each-way races. Such wagers bring a realistic chance of some profit and offer the chance of a more rewarding payout if both runners win – a £10 win double on two 3/1 shots returns £160.

Beating the True Odds is Always the Key to Profit

In the end, betting on Bad Each Way races is another way of gaining an edge over the bookmaker by betting at advantageous odds. Following this system requires a little trading on the exchanges or comes with a degree of volatility if following the multiple method. However, there is a good reason why the bookmakers aren’t overly enamoured by such contests.

In fact, the bookies despise this strategy so much that if you bet ONLY on Bad Each Way races, you may soon find your account closed or bets restricted. Nevertheless, this profitable tool is well worth including in your overall strategy.

Other Betting Guides and Strategies:

Horse Racing Betting Sites 2024

Statistics in Horse Racing Betting & How to Use Them

Are Favourites a Good Bet in Horse Racing?