Rule 4

[TheKnowledge]

I was just doing some calculations on paper and I notied that, just because Rule 4 is applied - it does not necessarily ensure that the Bookmaker's Book is overround. For example, let's say for the sake of argument that there is a three horse race, each horse is a strong contender and the bookie prices each of them at 7/4 (2.75). For the sake of example, lets say he takes £1000 on each selection. If any selection wins he will payout £2750, annd since he has taken £3000, he is £250 in profit from a 109% overround. Now let's say one of the horse is withdrawn, meaning a rule 4 deduction of 35p in the pound at odds of 7/4. Since he has to return the stakes on the withdrawn horse - his takings are now only £2000 but he has to pay out £2137.50, so he is working at a loss. Have I got this totally wrong or is it true that the bookie suffers from withdrawn horses?

[Blair Boy]

Re: Rule 4 Realistically though there won't be a race where all the runners are priced the same, I think if it was only 3 horses the over round would be far greater to ensure the bookie still makes a profit should any outcome of a horse been withdrawn arise. Although on paper your theory could be correct but the actual reality of it happening looks unrealistic.