The Dutching Method: Spreading Risk in Horse Racing & Futures

Learn how to back multiple contenders in a single race or futures market, distributing your stake to guarantee equal profit regardless of which selection wins. Master the math behind dutching and use our calculator to find profitable opportunities.

Dutching Calculator

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In This Guide

What Is Dutching?
Dutching vs. Arbitrage
The Dutching Formula
Horse Racing Example
Futures Market Example
When Dutching Works
Common Mistakes
FAQ

What Is Dutching?

Dutching is a betting strategy where you back multiple selections in the same event, calculating your stakes so that you win the same profit regardless of which selection wins. It's named after Dutch Schultz, a legendary gambler who popularized the technique.

The Core Concept

Instead of betting $100 on a single horse at +400, you might dutch $100 across 3 horses. If the combined odds are favorable, you'll win the same amount no matter which of your selections crosses the finish line first.

Single Bet Risk

Bet on Horse A (+400)$100
If A wins:+$400
If A loses:-$100

Dutching Approach

Horse A (+200): $38.46
Horse B (+300): $28.85
Horse C (+400): $23.08
Horse D (+500): $9.62
Any wins:+$15.39
All lose:-$100

Key Point

Dutching only guarantees profit when the combined implied probability of your selections is less than 100%. If it's above 100%, you're guaranteed to lose money.

Dutching vs. Arbitrage: What's the Difference?

While both strategies aim to reduce risk, they work differently:

AspectDutchingArbitrage
What you betMultiple selections in same eventOpposing outcomes (back vs lay)
Profit guaranteeOnly if combined prob < 100%Yes, always
RiskLose if none of your picks winZero risk (guaranteed profit)
Typical useHorse racing, golf, futuresCross-sportsbook opportunities
Profit margin5-30%+ if odds are favorableTypically 1-5%

Bottom line: Arbitrage is risk-free but rare and low-margin. Dutching accepts some risk (none of your picks winning) but can offer much higher returns when you identify value.

The Dutching Formula Explained

The math behind dutching ensures each selection returns the same profit. Here's the formula:

Dutching Stake Formula

Stake = (1/Decimal Odds) ÷ Sum(1/All Decimal Odds) × Total Stake

Each selection's stake is proportional to its implied probability relative to the total.

Step-by-Step Breakdown

1

Convert to decimal odds

+200 → 3.00, +300 → 4.00, +500 → 6.00

2

Calculate implied probabilities

1/3.00 = 33.3%, 1/4.00 = 25%, 1/6.00 = 16.7% → Total = 75%

3

Check if profitable

75% < 100% ✓ → Profit margin = 25%

4

Distribute stakes proportionally

Selection A: 33.3%/75% × $100 = $44.44 | B: $33.33 | C: $22.22

Pro Tip: Skip the manual math entirely. Our Dutching Calculator handles all conversions and stake calculations instantly.

Horse Racing Example: Kentucky Derby

Let's dutch the 2025 Kentucky Derby by backing four contenders we believe have a strong chance:

Scenario: $500 Total Stake

HorseAmerican OddsDecimalImplied %StakeIf Wins
Fierceness+3504.5022.2%$164.71$741.20
Sierra Leone+5006.0016.7%$123.53$741.18
Catching Freedom+6007.0014.3%$105.88$741.16
Stronghold+8009.0011.1%$82.35$741.15
Total64.3%$500.00~$741
Combined Probability
64.3%
Profit If Any Wins
+$241.17
ROI If Wins
48.2%

Risk Assessment

If none of your 4 horses win, you lose the full $500. The combined implied probability of 64.3% suggests roughly a 36% chance of losing. Dutching reduces variance vs. a single bet but doesn't eliminate risk.

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Futures Example: Super Bowl Winner

Dutching works brilliantly for long-term futures markets where odds are generous and you can identify multiple contenders:

Scenario: $1,000 on AFC Contenders

TeamOddsImplied %StakeIf Wins
Kansas City Chiefs+40020.0%$327.87$1,639.35
Buffalo Bills+60014.3%$234.19$1,639.33
Baltimore Ravens+70012.5%$204.92$1,639.36
Cincinnati Bengals+12007.7%$126.23$1,641.00
Miami Dolphins+14006.7%$109.84$1,647.60
Total61.2%$1,000~$1,640
Potential Profit+$640 (64% ROI)

If any of these 5 AFC teams wins the Super Bowl, you profit ~$640. Combined implied probability of 61.2% means ~39% chance none of them win.

When Does Dutching Work Best?

Ideal Scenarios

  • Horse racing - Many runners, generous odds
  • Golf tournaments - 150+ players, high odds
  • Conference futures - Narrow the field to contenders
  • Award futures - MVP, Heisman, etc.
  • When you find inefficient lines

Avoid Dutching When...

  • Combined implied probability > 100%
  • Two-way markets (better to arbitrage)
  • Heavy favorites dominate the field
  • You're including selections you don't believe in
  • Small profit margin (<10%) isn't worth the risk

5 Common Dutching Mistakes

1

Dutching when combined probability > 100%

You're mathematically guaranteed to lose money. Always check the dutch percentage first.

2

Including too many selections

Every selection you add dilutes your profit margin. Stick to 2-6 strong contenders.

3

Using different sportsbooks with different rules

Dead heat rules, void conditions, and payout timings can vary. Use one book when possible.

4

Not accounting for odds movement

If odds change before you place all bets, your stakes will be wrong. Use the calculator fresh each time.

5

Emotional selection

Adding your 'favorite' horse that has no real chance just inflates combined probability and reduces profit.

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Frequently Asked Questions

What is dutching in betting?

Dutching is a betting strategy where you back multiple selections in the same event, calculating stake sizes so you win the same profit regardless of which selection wins. It's named after the legendary gambler Dutch Schultz.

Is dutching the same as arbitrage?

No. Arbitrage guarantees profit by betting both sides (back and lay, or opposing outcomes). Dutching backs multiple selections in the same event at odds that may or may not guarantee profit - it only works when combined implied probability is under 100%.

When is dutching profitable?

Dutching is profitable when the combined implied probability of your selections is less than 100%. For example, if three horses have odds of +200, +300, and +500, their combined implied probability is 33.3% + 25% + 16.7% = 75%, allowing for a 25% profit margin.

Can I dutch futures bets?

Yes! Futures markets like Super Bowl winner, NBA champion, or golf tournament winners often have enough selections with high odds that dutching a group of contenders can be profitable.

How many selections should I dutch?

Typically 2-6 selections works best. Too few and you haven't spread risk enough; too many and your profit margin shrinks to nothing. Focus on selections you genuinely believe have a chance.

What's a good profit margin for dutching?

Aim for at least 15-20% profit margin (combined implied probability of 80-85%). Below 10%, the risk of losing your entire stake probably isn't worth the small profit.

Ready to Dutch Your Next Bet?

Enter your selections and total stake into our Dutching Calculator to instantly see the optimal stake distribution and potential profit.

Responsible Gambling

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