Betting comes in a couple of different flavors. The traditional, and still the preeminent bet, is the "straight bet" to win, or place or show. These bets are usually cited as if they were in a $2 denomination. So if someone says that a horse paid $52, it means that a $2 bet "to win" paid back $52 (including the return of the original $2) if the horse finished in first place. A bet "to place" means that it will be "a winning ticket" if the horse finishes either first or second. A bet "to show" means that the bettor wins if the horse comes in first, second or third. A horse that finishes in the top three is said to be "in the money."

Suppose that your handicapping homework disclosed that the 6th race at Pimlico (for example) features this speed horse (let's call him "Death and Taxes" - the name for the closest thing a horse can be to a sure thing). Death and Taxes has little competition in the race, and the distance is 6 furlongs, short enough that he surely will not tire. This may be a candidate for a "prime" or maximum bet. This is a straight bet designed to maximize income to the bankroll because the chance of having a winning ticket is good.

Unfortunately, if handicapping the race is too easy, the horse may not be overlaid enough in the pari-mutuel pool to provide value for a prime bet. It may just be an "action" bet, or worse, Death and Taxes may be underlaid, so that any straight bet would be foolish. In this case, while the chances of holding a winning ticket remain high, the payoff will be so low as wipe out any edge advantage you may have had.

Death and Taxes might be a candidate to enter into the planning of an exotic bet instead.

Prime bets are really the result of clever handicapping, where the analyst is reliably more informed or more clever than the rest of the wagerers. It is the non-obvious angle that creates overlays. Of course this is hard to achieve as a newcomer. It may be that no prime bets appear in a given day at the book. It is not shameful to make minimum bets in the face of less than complete conviction about a race. In fact, there is no obligation to bet at all. Remember, betting without information on your edge makes you an ignorant and emotional player in the same way as when you knowingly bet with a negative edge.

On the other hand, there is no shame in betting favorites in straight bets, assuming that the handicapping confirms the wisdom of doing so. Be aware that the public can favor a horse for many different reasons, some of them silly. The public's love for a particular horse may just be the name (like "Death and Taxes"), the silks worn by the jockey, or on account of some track tout's rumor. In such cases, betting against the favorite may be a smarter wager. Throughout the wagering experience, the constant objective is to bet only when the pari-mutuel pool will pay you for winning at a greater rate than the risk taken to place the bet. Surely a few bets will be lost, but at the end of the day, or the year, the net will be positive, unless your handicapping was poor.

The tot board in the infield of a track will provide updated information on the pari-mutuel pool. The simulcast will also echo this information. The tot board data include, for each horse in a race, how much has been wagered to win, to place and to show, and the number of $2 bets (or equivalent). The track odds are also provided, and they are simply the result of a calculation based on all the betting so far. By now it should be obvious that the less money bet on a horse, the less likely the public thinks this horse will perform well. "Dead on the Board" means that a negative opinion has emerged in the betting, further discouraging anyone else from making more bets. If the reason for the public's distrust of the horse is incorrect, there may nevertheless be value in a long shot. Handicappers understand that when the herd mentality or mob psychology is working against a horse, there may be a good value bet in there.

Whether the money is placed to win, place or show is itself a decision that also must be based on what the tot board says about the track odds. For example, when the track odds are strongly against a specific horse, the "show" bet might make the most sense. The payoff will not be as great as a win, but still it will have value, and there will be a payoff for being "almost right." Another example is if a favorite is severely underlaid (over bet). In such a situation, a second horse may be a contender, justifying a bet "to place" and paying out more for the money risked.

Whether it makes sense to restrict the bet "to win" or to be less demanding and go for either first or second ("to place") or even for third place ("to show"), depends a great deal on the shape or contour of the race and the chance that one of the contenders might under- or over-perform the expectation.

In any event, straight bets are the bread and butter of the horse player. Strategically clever straight bets can pay several times over and repair any damage to the bankroll caused by handicapping goofs in previous races. When betting in exotics, do not forget to place straight bets (when warranted), since the odds of winning are usually much more favorable in straight bets, even though the payoffs may also be smaller.