In the 19th century, famous Italian engineer, economist, and sociologist Vilfredo Pareto introduced what we now call the Pareto Principle. The idea is simple: 80% of results often come from just 20% of causes. Today, this concept has evolved into the popular 80/20 horse racing betting strategy, which many bettors use to maximize their success. In this article, I’ll explore various ways to implement this strategy and provide practical examples.
The 80/20 betting strategy is straightforward. You divide your total stake into two parts: 80% and 20%. You then wager 80% on a selection you’re confident will win and use the remaining 20% for another, less certain bet.
For example, some of the best international betting sites let you bet on a horse to finish in various positions, not just to win. So you could bet on a horse to either win the race or place in one of the top spots. Since accurately predicting the exact winner is tougher, you’ll bet more on the horse to place and less on it to win.
If the horse wins, you’d get a $10 return ($2 X 5). On the other hand, if the horse places, you’d get a $16 return ($8 X 2). However, you lose your entire stake if the horse has neither won nor placed.
You can also use the 80/20 horse racing system with two different horses in the same race. This approach involves betting on both horses to win, so you’re guaranteed a return if either one wins. However, if neither of the horses wins, you’d lose your stake completely.
This strategy works well if you believe there’s a clear favorite likely to win but also think another horse has a chance. In this case, you’d bet 80% of your stake on the favorite and 20% on the lesser favorite who you think has a chance.
For example, let’s say you want to use the 80/20 method for betting on horse A and horse B. Horse A, being the favorite, has been listed to win the race at 3.0 odds. Horse B, on the other hand, has been listed at 8.0 odds. With a $10 stake, you’d place $8 on horse A. If horse A wins, you’d get $24 back ($8 x 3). On the other hand, you’d place $2 on horse B, and if it wins, you’d get $16 back ($20 x 8).
The singles 80/20 system is one of the types of 80/20 bet strategy that involves detailed analysis and in-depth research. With this approach, you focus on identifying the jockeys or trainers who consistently rank in the top 20% of winners. Then you place your bets on them.
The Pareto concept behind this system is that 80% of horse races are won by just 20% of horse jockeys or trainers. Those who fall into this top 20% are considered to have passed the Pareto test. The single 80/20 system is based on this Pareto test status.
Here’s how it works: find a bet in a race where there’s only one Jockey who is part of the top 20% (the ones who pass the Pareto test). In such a race, this Jockey has a higher chance of winning. The winning probability is even higher if the Jockey is considered a favorite. You can also use this strategy with trainers. Like jockeys, you focus on races where there’s only one Pareto status trainer (one who falls into the top 20%).
You can also apply this single system 80/20 rule in horse racing betting by considering the Pareto status of both Jockey and trainer. Look out for a horse that has both a Pareto status jockey and a Pareto status trainer. The probability of such a horse winning is exceptionally high. However, it is almost impossible to find such a combination.
The each-way bet system is quite similar to the 80/20 Pareto betting strategy but with a few key differences. Like the Pareto system, your stake will also be divided into two parts. However, with the each-way system, the split is even; half goes on the win, and half goes on the place bet. Also, unlike the Pareto 80/20 betting system, the each-way system combines both the win and place bet into a single bet slip.
Here’s a practical example: imagine you have a $10 stake, and you want to place an each way bet on horse A. Let’s say the bookmaker set the odds for the win option at 5.0 and the place option at 2.0. You’ll be staking $5 on horse A to win the race, and $5 on horse A to place.
If horse A wins, you will receive a total return of $35: $25 from the win bet ($5 x 5) plus $10 from the place bet ($5 x 2.). If horse A just places, you’d only get a return of $10 from the place bet ($5 x 2). On the other hand, using the 80/20 rule under the same conditions will give you a $10 return ($2 X 5) if the horse wins and a $16 return ($8 X 2) if it places.
The table below shows the main differences between the 80/20 system and the each-way bet system:
| Pareto 80/20 Betting System | Each Way Betting System |
|---|---|
| You divide your stake into 80% and 20%. | Your stake is divided into two equal halves (50% each.) |
| You’re betting more on the place bet. | You stake equally on the win and place wagers. |
| More return on the place wager. | More return on the win bet. |
| Place and win wagers are separate. | You combine the place and win bet into one bet slip. |
| You’re focused on the safer option. | Staking equally on both options. |
Horse racing is one of the most popular betting markets where the Pareto principle is applied. But does it really work?
Like many other betting strategies, the Pareto betting principle offers you a structured approach to placing your wagers. If you combine it with adequate research and analysis, it can significantly improve your chances of winning and help you limit losses.
However, you must always remember that no betting strategy can guarantee success in sports wagering. So remember to bet responsibly and stick to your budget.
