Wrong Payoff at Gulfstream?

[Rupert Pupkin]

Originally Posted by ranger5830

Firstly, the WPS takeout at Gulfstream is 17%, not 16%. But, using your numbers, when you divide 10,772 by 17,393, the answer I get is .6193..., and when you use a 17% take then the answer is lowered to .6043..., both of which are well under the .7 which would be needed for the payoff to be $3.40. If you do these calculations often, as I do, you'll know that due to net pool pricing, anytime the number lands near the breakage point, the payoff will always be short when you bet on the more well-supported winner. So while under the old calculation the payoff should have been $3.20, (albeit never $3.40) a payoff of $3.00 is not surprising at all.

Thanks Ranger!

[ScottJ]

Small, but very important, point to be noted when calculating place or show prices (pre-Net Pool Pricing days) : The takeout rate applies to the entire pool as the FIRST mathematical operation. Then, the winning wagers are subtracted from the net and divided (in two or three pots based on place or show) appropriately.

By subtracting the winner wagers first and then applying the takeout rate implies that winning wagers are NOT charged takeout which is incorrect.

[Rupert Pupkin]

Originally Posted by ScottJ

Small, but very important, point to be noted when calculating place or show prices (pre-Net Pool Pricing days) : The takeout rate applies to the entire pool as the FIRST mathematical operation. Then, the winning wagers are subtracted from the net and divided (in two or three pots based on place or show) appropriately.

By subtracting the winner wagers first and then applying the takeout rate implies that winning wagers are NOT charged takeout which is incorrect.

Yes, that is correct. That was how I did it. I subtracted $8,372, which is 16% of $52,325 (the total place pool). As Ranger said, I should have actually subtracted 17%, since that is the takeout on WPS bets in Florida.