What is the boundary between investment and gambling? Part ① Public service racing edition (horse racing, etc.) - Tokyo Research Institute -

Hello everyone!

We are the Tokyo General Research Institute staff team!

This time, we would like to discuss public racing (gambling).

First, let's look at horse racing.

Please take a look at this.

In horse racing, payouts vary depending on the betting method.

Win bets predict the horse finishing first, place bets predict a horse finishing in the top two, and if you win, you receive a payout.

Exacta (trifecta? here: 3連単) bets require predicting the order of finish for the first three horses.

The higher the probability of winning, the higher the payout ratio tends to be; the lower the probability, the lower the payout ratio tends to be.

The average payout rate is 76.05%.

What does the figure 76.05% mean?

It means that nearly a quarter is taken by the house (the house edge).

If you bet 100,000 yen on one race, the expected value would be about 75,000 yen.

Therefore,the more money you bet, the more you stand to lose.

Karaoke? No—racing bets on keirin, boat racing have a payout rate of75%

Auto racing70%

in.

How was it?

It is clear that winning public gambling is quite difficult.

The best approach is to avoid getting involved too much, but if you do participate, it’s better to enjoy it as entertainment in small amounts rather than aiming for profits.

That’s all for now.

Next time, we will look at casinos.

Furthermore,

the author who handled Forbes monthly investment column for five years,

the representative of Tokyo General Research Institute, publishes this blog.

The knowledge of a 20-year active manager is condensed here!

For those who are bored with ordinary explanations, a must-see!