The Show Bet

[ranger5830]

Originally Posted by Dunbar

Beats me. That's why I asked.

So you're apparently worried about the track getting hit big with a minus payout. Like someone brings $100 million to the track to bet on Chrome in a 5-horse race? (Or do it through his/her wagering account at the track?) That bettor would collect $500K for the bet, if it won. $500K is not a rare purse these days, and paying out an extra $500K is not going to do serious damage to a first rate track. The publicity of paying off a bet like that would be worth quite a bit. Or are you worried about a $billion bet?

At any rate, history (at Santa Anita) seems to suggest that no one is eager to put that kind of money on the line for the sorts of races in which New York tracks cancel showbetting.

5 percent of 100 million is 5 million, not 500,000. But beyond that, the bigger problem is that the bet-taker is also liable for the takeout on the 100 million, on top of paying out the 5 million in this example. Some of that is mitigated by the fact you would have significant play against such a huge wager, because theoretically anything can happen in a horse race, but not nearly enough to cover the expense.