The SP in horse racing (and also greyhound racing) refers to the Starting Price. This is the price of each runner when the race begins. It is very important for a range of reasons, so read on for the lowdown on the SP.
What Is the Starting Price (SP)?
The SP is the official price of a horse at the start of a race. Understanding the concept of the Starting Price is crucial if you want to bet on the horses. It is calculated and regulated by the Starting Price Regulatory Commission (SPRC). This is an “independent body responsible for the integrity and accuracy of the Starting Price (SP)”.
The SP calculation has changed over the years. It used to be a simple average of on-course bookie odds at the time a race began. However, with so many bets now placed online, away from the track, change was inevitable.
Since May 2022, the SPRC has used the average odds across a range of UK bookies that “meet the SPRC’s qualifying criteria as a price source”. These criteria include prices being widely available in Great Britain, offering standard each way terms, and several others. The SP calculation is based on a sample of bookies, half of whom will have offered odds at the SP or greater.
How Does a SP Bet Work?
When you place a bet on the horses, you generally have the option of taking the SP or the current odds. Generally, bookies default to the live odds, fixing your bet at that price. However, you can change this to the SP, often on the bet slip. If you do this, your odds (and therefore your returns) will not be confirmed until after the race.
Taking the fixed price is helpful if you want to know exactly what your risk and reward are when placing the bet. It is also wise when you think the horse’s odds will shorten. However, if you expect the odds on your pick to get longer, then the Starting Price is the better choice. This can be a good idea if you anticipate a big, late gamble on a rival horse.
Imagine you decide to back Lucky Lucy at 4/1. If you take the price at that time, £10 returns £50 in total. However, if you take the SP and she drifts out to 5/1, as an alternative horse is heavily backed, your returns are £60. Alternatively, if Lucky Lucy herself is the late gamble, she might be backed in to 5/2. Now your returns are just £35.
SP vs. Fixed Odds: Which Should You Choose?
The odds you choose depend on whether you think your pick’s odds will get shorter closer to the race or drift (lengthen). Generally, most punters opt to take the published price because they have faith in their pick and believe others will as well. In such a scenario, the punter expects that horse to prove popular, attract more bets, and thus see its odds shorten.
However, perhaps you are taking a contrarian position and believe that most punters will favour an alternative horse. Perhaps you are privy to some lesser-known information about a horse, and while the market will favour its rivals, that betting pattern will inflate the SP of your pick. In this scenario, opting for the Starting Price would be wise.
The best option is to bet with a bookmaker offering Best Odds Guaranteed (BOG). The best horse racing bookies offer this on all UK and Irish races. With BOG, you can take the early price, but if the SP is higher, you will get paid at the bigger odds.
Other Uses of SP in Horse Racing
The SP has other applications, too. For example, bookies may offer early accumulators that are settled at the SP. If you want to bet early on a race taking place the following day, whether a single or multiple, the Starting Price will generally be the only option. In the event of any technical issues with early prices, the Starting Price is a fail-safe.
Another use of the SP is to provide historical odds for races. If we look back to the 1966 Grand National, for example, Anglo won at 50/1. Such prices are always recorded as the SP.
Finally, a wide range of bets utilise the SP. These include promo markets, early multiples, and even early singles. If the bookies have accrued a large liability on a horse they believe is likely to win, some people have argued that they may attempt to manipulate the SP lower to reduce their payout. Bookmakers may even do this by backing the horse themselves at the last minute to drive the SP down.
Conclusion
So, what does SP mean in horse racing? The SP refers to the Starting Price. This is the official price at the start of a race. An independent body calculates the SP as an average of the odds offered by a range of major bookmakers.
Punters should opt for the SP if they expect the odds to lengthen. However, if they think their pick will be well backed, they should take the published price at the time of the bet. Ideally, choose a bookie that offers Best Odds Guaranteed!