Chapter 13: The Pick 5

Pick 5s are more rarely offered than Pick 3, 4 and 6 but they are making a resurgence in 2014 with a 14% track take and 50 cent tickets on the first five races of the card in California, New York and other racetracks. Beyer (2014b) points out that the P5 handle at Del Mar has been double or more that of the exacta. The Pick 5 dominates the Pick 6 which has $2 tickets and a 23.68% take up from 20.68%. The payoffs have been large too with some near $100,000 and most above $7000 per 50 cent ticket. Horse players have boycotted the higher takeouts on exotic bets. For example at Churchill Downs the higher take has lowered betting volume. Track managements still do not understand the basic economic result that higher takes lead to less volume and lower not higher track profits. Those betting with rebates get some rebate but not all of the increase…