How to Read Horse Racing Odds in Australia

Published on April 11, 2025

Odds staring back at you from the screen? Feeling like they're speaking another language?

Don’t worry—you’re not alone. For many Australians new to the track or online bookies, horse racing odds Australia - style can be a real head-scratcher. But once you understand what those numbers mean, you’ll feel way more confident placing bets.

This guide breaks it all down simply—no jargon, just clear explanations. You’ll learn how to read odds, understand decimal vs fractional formats, calculate payouts, and spot good betting value.

1. What Are Horse Racing Odds, Really?

Let’s start with the basics.

Odds are a reflection of probability. They show how likely a horse is to win—and how much you’ll win if it does.

They do two key things:

  • Tell you how much money you’ll make if your bet wins.
  • Indicate the implied probability that the horse will win.

In Australia, decimal odds are the standard. You might see 3.50, 6.00, or even 12.00 next to a horse’s name. Don’t panic. These are easier than they look.

2. How Decimal Odds Work (The Aussie Standard)

Decimal odds show your total return, not just the profit.
  • Example: If the odds are 6.00, a $1 bet returns $6 in total. That’s $5 profit + your $1 stake.
  • Formula:

    Total Return = Stake × Decimal Odds

So for a $10 bet at 6.00 odds: $10 × 6.00 = $60

You profit $50.

Why Aussies Prefer Decimal Odds

  • They're simpler to calculate.
  • They include your stake in the return.
  • They work well in parimutuel systems used across Australian TABs.

3. How to Calculate Implied Probability from Decimal Odds

Here’s a smart trick: you can figure out how likely a horse is to win by converting odds into percentage.

Formula:

Implied Probability (%) = (1 ÷ Decimal Odds) × 100

  • Odds: 4.00 → 1 ÷ 4.00 × 100 = 25%
  • Odds: 1.50 → 1 ÷ 1.50 × 100 = 66.7%
  • Odds: 10.00 → 1 ÷ 10 × 100 = 10%

If you think a horse has a better chance than the implied percentage, you may have found a value bet (more on this later).

4. Fractional Odds (Still Appear Occasionally)

Although decimal odds dominate in Australia, fractional odds still pop up occasionally—especially on UK races or international betting sites.

They look like this: 5/1, 3/2, or 10/3.

How They Work

Fractional odds show profit : stake.

  • 5/1 (spoken “five to one”) means: for every $1 bet, you’ll make $5 profit if your horse wins. Total return is $6.
  • 10/3 means: for every $3 bet, you win $10. Total return = $13.

Formula:

Profit = Stake × (Numerator ÷ Denominator)

Example: $20 bet at 7/2 odds

= $20 × 3.5 = $70 return ($50 profit + $20 stake)

5. Converting Decimal to Fractional (and Vice Versa)

This is handy if you switch platforms or bet across different regions.

  • Decimal to Fractional: Subtract 1
    • 4.00 decimal = 3/1 fractional
    • 2.50 decimal = 6/4 (or 3/2)
  • Fractional to Decimal: Add 1
    • 7/2 = 4.5

Online converters like OddsMonkey help, but the math is simple enough once you get the hang of it.

6. Implied Probability from Fractional Odds

Same concept, just different formula.

Formula:

Implied Probability (%) = Denominator ÷ (Numerator + Denominator) × 100

  • 5/1 → 1 ÷ (5 + 1) × 100 = 16.7%
  • 2/1 → 1 ÷ (2 + 1) × 100 = 33.3%
  • 1/1 → 50%

7. Parimutuel System in Australia

Most bets in Australia go through the Totalisator system (TAB), also known as parimutuel betting.

  • How It Works:
    • Everyone's money goes into one big pool.
    • The payout odds are determined by total pool and number of bets.
    • Bookies take a cut (takeout) — around 10–15%.

This means odds fluctuate until post time, and your final payout isn’t fixed like it is with a bookmaker.

Pro Tip: Watching live market shifts can reveal late money—often from pro punters.

8. What About Fixed Odds?

Fixed odds are offered by online bookies like TAB, Ladbrokes, and Bet365.

  • They lock in your odds at the time you bet.
  • They're easier to track and calculate.
  • You know exactly what you’re getting back.

9. How to Spot Value in Odds

It’s not about picking the winner every time. It’s about spotting good value.

  • Check the implied probability from odds.
  • Compare it to your own estimate of the horse’s chances.
  • If the bookie underestimates the horse’s true chances—you’ve found value!

Example:

Odds = 5.00 → 20% implied

You think the horse has a 30% chance? That’s value.

Real-World Example (Simplified)

Let’s say you’re looking at Race 5 at Randwick.

Horse #3, “Lightning Leo,” is listed at 6.00 decimal odds.

  • You bet $10 → Return = $10 × 6.00 = $60.
  • Profit = $50
  • Implied chance = 1 ÷ 6.00 × 100 = 16.67%

If you think Leo has a 25% shot based on his last runs, trainer stats, and weather conditions, this is a value bet.

Understanding horse racing odds in Australia isn’t just for pros—it’s for anyone who wants to enjoy the races and make smarter bets.

Remember:

  • Decimal odds show total return and are the Aussie standard.
  • Fractional odds are still used, especially with UK races.
  • Always check implied probability.
  • Look for value bets, not just favourites.
  • Use calculators and tools to help—there’s no shame in that!

With practice, you’ll go from confused to confident—and maybe even cash in a few winners along the way. Anyway our guides The Thrill of Horse Racing , How to Bet on Horse Racing , Horse Racing Tips for Beginners and Top 5 Winning Strategies for Horse Racing , will help you to enter the area of horse racing domain.