Betting : the Theory and Practice explained 



87 



We will now explain the theory of "hedging," by which the 

 possibility of losing money is avoided, whether the horse you 

 back win the race or not, provided, you can get any one to accept 

 your bets who will not prove a defaulter at settling day. The 

 principle involved is really the same as the one well known in 

 trade of buying in a cheap market whilst selling in a dear one. 

 For instance, some months before a race, the odds against a horse 

 which you fancy are, perhaps, 15 to 1, and you invest a hundred 

 pounds on him, so, if he win, you will receive £1,500. Shortly 

 before the race the odds against him fall to 5 to 1. You then bet 

 £500 against him; if he win, you pay £500 on the second, and re- 

 ceive £1,500 on the first bet, leaving you a clear profit of £1,000. 

 But if he lose, you come off quits, as you only pay £100 on the 

 first, and receive the same amount on the second bet. If you had 

 made the second bet £1,000 to £200 instead of only £500 to £100, 

 you must win something whether your horse is beaten or not, 

 but of course your possible profits are considerably lessened. 



To be a successful bookmaker, a man must be well up m all 

 racing matters, very clear-headed, and sharp at mental calcula- 

 tions ; quick-witted to know when to snap up offers as fast as 

 possible ; indefatiga ble in his attention to the business, with a 

 good strong constitution to stand the wear and tear of constantly 

 attending race meetings . 



Betting in India. — The English system of betting, as de- 

 scribed in this treatise, is not applicable to India for want of 

 professional bookmakers. But where Englishmen are residing 

 there will be horse racing, and when there is horse racing, bet- 

 ting seems inevitable ; and if betting is to take place, there must 

 be some system of obtaining the correct odds. Consequently in 

 India an unique mode, called "double lotteries," is in general 

 use, and the French yari mutiiel has become acclimatised as a 

 subsidiary plan for getting the odds. In former years gigantic 

 lotteries were organised in all the larger towns, depending en- 

 tirely on luck (that is. as many tickets as possible were sold, and 

 the proceeds, less a percentage for the race funds, divided pro- 

 portionately between those lucky enough to draw horses, which 

 was as simple as an ordinary English raffle), But as these have 

 been made illegal, we will not refer further to them, but will 

 proceed to describe the system still in vogue. 



The "double lottery" requires a special caution, or the newly 

 arrived stranger who wishes to join may find himself consider- 

 ably let in at the auction of horse's chances. Every bid means 

 double the amotint named, — e.g., if one hundred rupees be the 

 highest bid, the person making it has to pay two hundred, 

 which is divided equally between the lottery-fund and the hold- 

 er of the horse bid for. There are usually 100 tickets ; the value 



