What SP Means in Horse Racing Betting (How it Affects Your Profits)

Horse racing betting is packed with excitement, strategy, and possibility. But for many, terminology is confusing.

What does SP actually mean in horse racing? and why is it so important for those placing bets?

Simply put, the SP is the official odds of a horse at the moment the race starts. In this article, we will look at:

• How horse racing SP’s are calculated.
• The positives and negatives of betting at the starting prices
• Where to get the best odds when betting at SP

How SP (Starting Price) is Determined in Horse Racing…

The SP (Starting Price) in horse racing represents the odds that a horse is finally listed by bookmakers when the race begins.

Here’s how it’s calculated:

1. Role of Bookmakers: Before a race starts, bookmakers set odds for each horse based on various factors like form, past performance, track conditions, and jockey performance. These odds fluctuate based on how much money is being bet on each horse.

2. Market Demand: The SP is heavily influenced by the betting activity within the market. If a lot of money is placed on a particular horse, its odds often shorten (become less favourable for bettors), as demand suggests the horse is more likely to win. On the other hand, odds may lengthen (become more favourable) if there’s little betting interest in a horse.

3. Final SP Determination: Just before the race starts, an averaged consensus of the odds being offered by the most popular on-line bookmakers is taken. This average helps establish the SP. It’s important to note that the SP isn’t set by any single bookmaker, it reflects the broader betting market.

The process ensures that the SP is a good representation (after bookmaker margins are applied) of what the betting public thinks are the odds of a horse winning at the time the race begins. It is regulated by the starting price regulatory commission.

The Logic Behind SP Calculation:

To calculate the SP, odds from a selection of bookmakers are used. A simple average might seem like a fair method, but this could open the door to bookmakers manipulating the odds for their benefit, disadvantaging bettors.

To try and ensure fairness, the SP is determined by taking the lowest odds from the upper half of the selected bookmakers who determine the SP at the time the race starts. This rule prevents extreme odds from heavily influencing the final SP.

The Calculation Process

Let’s break it down with an example:

1. Collect Odds from Bookmakers

These are the odds offered by ten bookmakers on one specific horse:

Pros and Cons of SP Betting on Horses:

Now that you understand what SP betting actually is, you may be wondering what is the advantage of SP vs fixed odds betting?

Advantages of SP Betting

• Simplicity no need to track odds yourself.
• Potential for better odds if the market drifts in your favour.
• Avoids last-minute odds fluctuations and market volatility.
• If you only have access to one bookmaker with below-average odds available.

There are some potential advantages for recreational bettors, however, there is a reason that when some bookmakers ban long-term winning bettors, they still allow them to bet at SP.

This is due to the disadvantages of SP betting!

Disadvantages of SP Betting

• Missing the best odds available.
• Cannot take advantage of best odds guaranteed promotion.
• Generally less profitable.
• Less control of bets compared to fixed odds
• Cannot trade selections
• Unaware of the odds taken until race starts
• Harder to find value betting at SP

 SP Horse Betting Strategy?

Generally, we would not recommend betting at SP. In sports betting the only way to make money long-term is by backing higher odds then they should be. This means that if we can back a horse at odds of 2.0 (indicates 50% win chance) that our analysis has as a 1.8 shot (55.6% win chance), we have a clear indication that is value.

We know for sure that the odds we are backing are higher than the odds we believe the horse should be. Here lies the big problem with betting at SP?

Until the start of the race, we have no idea what odds our bet is going to be placed at. This makes it very difficult for us to create a profitable SP system, however it isn’t impossible. Over my many years of betting I have seen systems that look to back big-priced horses at BSP (Betfair SP), the logic behind this at these unfancied horses are under bet by the general public. Usually due to there being a strong favourite in the race that is over bet.

Whilst it is possible to win backing at the SP and Betfair Starting Price (BSP) it is much easier in our opinion to win betting at fixed odds and utilizing Best Odds Guaranteed.

What is Best Odds Guaranteed (BOG)

Best Odds Guaranteed (also known as BOG) is a popular promotion offered by many bookmakers in the horse and greyhound racing markets. Ultimately, this offer ensures that bettors receive the highest possible payout if the odds for their selection increase after a bet is placed. It’s a strong incentive for bettors as it removes the risk of missing out on better odds and ensures they always get the best value.

If a selection drifts in odds after you place it and starts the race at a higher SP than the odds you backed. Bookmakers that offer this promotion will pay out the selection at the SP odds should your horse win the racing. The majority of the biggest bookmakers offer this promotion and negates really any reason to bet a selection at SP over a fixed odds bet.

In Conclusion:

Understanding how the SP (Starting Price) works can be an important factor for bettors looking to make the best choices when it comes to horse racing. While SP provides a somewhat fair market reflection at the start of a race it has some major drawbacks and is rarely the best option. For most bettors, fixed odds combined with BOG offer a greater chance of winning, making them a preferred choice over SP.

Related: What Does NAP Mean in Horse Racing? A Simple Explainer