I'm trying to wrap my head around Keeneland's plan to offer fractional wagering, in terms of what that might mean for the player and the track. Would appreciate other people's takes.
If you haven't heard about it, see this link:
http://www.keeneland.com/Lists/News/...m.aspx?ID=7096
Here's my thoughts. Keeneland says that it is offering fractional wagering so that bettors can include more horses in their bets. Assuming that bettors will include more horses in their bets while wagering the same net amount, take this very simple example: a bettor who normally would place a $5 bet on one horse places two bets on two horses for $2.50 each.
This means that there will be more bets spread more widely, which means that there will be more winning bets. The effect of more winning bets dilutes the payout for any individual winning bet, which adversely affects the winning bettor.
On the other hand, because there's more winning bets, and because Keeneland takes breakage on each winning bet, this means more money for Keeneland.
So it seems that fractional wagering is bad for the bettor, good for the track.
What am I missing?