Takeout: the track’s cut of every pool
Takeout is the share of each betting pool that the track and state keep before winners are paid. Win, place and show often run 15% to 18%. Exotics like trifectas often run 20% to 25% or more.
Reviewed Oct 15, 2026
Answer first
90s- 01Takeout comes off the pool before payouts.
- 02Exotic bets usually have higher takeout.
- 03Breakage rounds payouts down a little more.
Key numbers
Takeout at a glance
In short
Key takeaways
- Every pool has its own takeout rate.
- Lower takeout pools return more to winners.
- The program or track website lists the rates.
- Takeout is why most bettors lose over time.
Progress
Where a pool goes
- 1
Bets in
All money in the pool
- 2
Takeout
Track, purses and state
- 3
Breakage
Rounding down
- 4
Net pool
Shared by winners
Each state sets its own maximum rates.
Sample takeout by bet type
| Bet | Typical takeout | Example: NY tracks |
|---|---|---|
| Win, place, show | 15% to 18% | 16% |
| Exacta, quinella, daily double | 18% to 22% | 18.5% |
| Trifecta, superfecta | 20% to 26% | 24% |
| Pick 3 to Pick 6 | 15% to 26% | 24% |
Rates change; confirm on the track website or program.
How takeout shapes payouts
Say $100,000 is bet to win on a race with 16% takeout. The track keeps $16,000. The other $84,000 is split among tickets on the winning horse. If $20,000 was bet on the winner, each $2 ticket gets $84,000 divided by 10,000, or $8.40, before breakage.
The takeout money pays track costs, horse purses and state taxes. It is set by state law or racing commission rules, and tracks may price below the maximum to attract bettors. Some tracks run lower takeout on Pick 5 or Pick 4 bets to build handle.
Takeout is a price, much like the vig at a sportsbook. A 16% win pool means the crowd as a whole gets back 84 cents per dollar on that pool.
What different takeout returns
| Pool | Takeout | Returned to winners |
|---|---|---|
| $100,000 | 12% | $88,000 |
| $100,000 | 16% | $84,000 |
| $100,000 | 20% | $80,000 |
| $100,000 | 25% | $75,000 |
Our own sums, before breakage.
Breakage: the hidden extra cut
Payouts are rounded down, usually to the next 10 cents per $2 bet, called dime breakage. A true $8.47 payout becomes $8.40. The rounded-off amount goes to the track and state.
Breakage hurts most on short-priced horses. On a $2.10 show price, rounding a true $2.19 down loses about 4% of the payout. Some states use nickel breakage, which is a little kinder to bettors.
Across a year of small bets, breakage can add close to 1% to your real cost. It matters most to players who bet favorites to show, where the margin is thin and the rounding is a large share of each payout.
Sequence
Checking takeout before you bet
Step 01
Open the program
Rates are often listed.
Step 02
Check the track site
Look for wagering menus.
Step 03
Compare bet types
Exotics often cost more.
Step 04
Look for low-takeout pools
Some Pick 5 bets are lower.
Step 05
Factor it in
Price your bets after takeout.
Takeout and advance deposit wagering
When you bet through a licensed online wagering site, your money goes into the same track pools, with the same takeout. Some sites pay rewards or rebates on handle, which can offset part of the cost for regular bettors.
Large betting groups often get rebates of several percent. That is one reason they can beat a pool that loses for casual bettors.
For a casual player, the practical step is to know the rate on each bet you like. If two tracks run similar races, the one with 15% takeout on the bet you play returns more to winners than one at 20%.
Floor rules
Takeout terms
Know before you sit
- Takeout
- Share of each pool kept before payouts.
- Breakage
- Rounding payouts down.
- Handle
- Total money bet.
- Rebate
- Money returned to a bettor on handle.
Common mistakes
- Ignoring bet type takeout
- Exotics often cost more.
- Thinking odds include no cut
- Tote odds are after takeout.
- Forgetting breakage
- Small payouts lose the most.
- Betting every pool
- Some pools are priced better.
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01Basics
What is takeout in horse racing?
The share of each betting pool kept by the track and state before winners are paid, often 15% to 25% depending on the bet.
Why do exotics have higher takeout?
Tracks and states set higher rates on complex bets, since players accept them for the chance at a large payout.
Who sets the takeout?
State law or the state racing commission sets limits. Tracks choose rates within those limits.
02Payouts
How does takeout change my payout?
It shrinks the pool. With 16% takeout, winners share 84% of the money bet, before breakage.
What is breakage?
Rounding payouts down, usually to 10 cents per $2 bet. A true $8.47 becomes $8.40.
Do online bets have the same takeout?
Yes. Online wagers join the same track pools, though some sites pay rewards that offset part of it.
03Tips
Where can I find takeout rates?
Track websites, the official program and some racing data sites list rates for each bet.
Is low takeout a better bet?
It returns more to winners, so the same winning ticket pays more. It does not make picking winners easier.
Why do big bettors get rebates?
Tracks and hubs pay rebates to attract large handle, which cuts their effective takeout.
Sources
- Wikipedia — Parimutuel betting Not from a registry (Reference source, not an official registry) · accessed Oct 15, 2026Pools, takeout and breakage
- New York Racing Association Not from a registry (Reference source, not an official registry) · accessed Oct 15, 2026Wagering menus and takeout
- Equibase Not from a registry (Reference source, not an official registry) · accessed Oct 15, 2026Official US racing results and charts
- National Council on Problem Gambling — Help and resources Not from a registry (Reference source, not an official registry) · accessed Oct 15, 2026Free, confidential help: call or text 1-800-GAMBLER