Quote:
Originally Posted by Turbulator
There was one aspect to the original article that I felt the author left out, and that was the effect of the tax man.
The tax takeout on large wins must be figured into your calculations. You just aren't getting the price you think you are when 28% or so is withheld.
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This is right on correct. One major disadvantage of exotic wagers is that if you hit large payoffs you have to fill out a tax form whereas win betting you don't.This is why I very seldom venture into this area.
The reason many people seek exotics is becouse they don't know who is going to win so they box a number of combos, hoping to hit a score. This is why most people lose.
The only reason why anyone should ever look into an exotic wager is to GAIN LEVERAGE on their PRIME BET. The goal is to MAXIMIZE your advantages, only under ideal situations where the opportunity presents itself should you do this.What I am always looking for is getting the largest edge I can. If I can take a 4-1 prime bet and turn him into a 10 or 15-1 bet thru a pk3 then and only then will I look at this bet . If my prime bet wins I need to have atleast a 65% hit rate on the last 2 races otherwise its a pass.Money that is used for exotics is not available for your win bet, so you must be MORE than compensated for the added risk.
All bets are a balance of risk vrs reward. If you want to win make sure the balance is tipped in your favor.
Mike.