What Does SP Mean in Horse Race Betting?

For anyone entering the betting world, learning the terminology is an essential step to better navigate the process and make informed decisions. And while some of said terminology can be confusing from the first glance, it can be easily explained.

In this guide, we are going to look at SP, a concept that is used in many sporting events but is especially relevant in horse racing. We will discuss what SP means in betting, why you should know it, and how it can be used.

What Does SP Stand For In Betting?

SP stands for Starting Price, it is the final odds that are placed on the horse at the start of the race. SP is determined right before the start of the race. As odds on horses significantly fluctuate before the official start, the moment you place a bet and the starting price could be drastically different. 

If you aren’t sure how to read odds, here you will find our comprehensive guide on how betting odds work.

Starting price is a common term used by bookmakers and it can be useful in numerous situations. However, betting newcomers can be confused when to use it to their benefit.  

While odds like 1/4, 5/2, or even 16/1 are more likely to be found at the horse races, one of the shortest odds recorded in the history of horse racing was 1/100 on the legendary Man o’War in the Stuyvesant Handicap in 1920. As to the longest odds, one of the more recent examples is He Knows No Fear competing at 300/1 in the Irish Stallion Farms EBF Maiden in 2020. Interestingly, he won that race literally against all odds.  

Whether you’re interested in domestic or international horse race betting, 7bet offers a wide selection of markets. Feel free to check out our horse racing page and see the events we offer on our sports betting menu.

When Should You Use SP?

These days a lot of bettors prefer to place bets with best odds guaranteed (BOG) rather than the starting price (SP). Best odds guaranteed means that at the end of the race the punter will be paid either based on fixed odds (the odds at the time when they placed the bet) or based on the SP, depending which one will be higher. 

With many solid bookmakers offering this option as early as 9 am on the day of the race, it is understandable why many punters go for it instead of the starting price. However, at some major events BOG isn’t available. Some more traditional bookmakers don’t offer this option either. For those cases, backing a horse at the SP might be a more preferable option.

Overall, if the best guaranteed odds isn’t an option, choosing between the starting price and fixed odds depends on how confident you are in the horse, how well you have researched the race, and how you expect the odds to change from the moment the market opens till the start of the race.

How Is The SP Decided?

When calculating the starting price on a horse, odds from leading on-course bookmakers are formed into a list, placing the odds in either ascending or descending order. This list is then divided into two equal parts. The shortest (lowest) odds in the half with bigger odds is determined as the SP.

If for any reason there are no bookmakers present at the race course, the same process applies to leading off-course (online) bookmakers. For example, this is how the starting price was calculated during the COVID-19 pandemic.

Why Is The SP Important?

With multiple races featuring hundreds of horses taking place all over the country every day, official calculation of the SP helps maintain order in the betting market. Bookmakers are free to offer different odds on different runners before the start, but once the race begins, any bet made not “at a price” will be settled according to the official starting price.

SP is also important when it comes to calculating bets such as forecasts and tricasts.

Forecasts and Tricasts

If the punter tries to predict the first two or first three finishing horses, these types of bets are called forecast and tricast respectively. They can be straight, meaning the horses must come to the finish line in a specified order. They can also be reversed, or multi, where the selected horses can finish in any order.

Both forecasts and tricasts are typically settled with the SP of the winning horses.

Tote Betting

Tote betting means that all the money placed on each horse is gathered into a pool. Once the winner is determined, every bettor who backed that horse will receive a share of the pool money based on the size of their initial stake.

When it comes to multi-leg Tote bets, like Placepot, if there is a non-runner after you have already placed your bet, your selection defaults to the SP favourite, to ensure that your bet can still participate. Here as well, it is important to have an official method of calculating the SP for all runners in all races.