What Does 'SP' Mean in Betting?

Most commonly used in horse racing, 'SP' means Starting Price. Starting price is the odds a bookmaker places on a horse before a race. These odds frequently change before races, depending on how much money has been bet. They may either shorten or drift (lengthen). The Starting Price is not limited to horse racing alone, as it would equally apply to a football game and other sports. Typically, bookmakers provide bettors with the option to gamble at a price currently being offered, the fixed price, or the Starting Price.

What Is 'SP'?

Starting price is the means by which players keep track of the final price a horse goes off at, as prices fluctuate before a race. SP is the wagering price made available by bookmakers before the race.

In setting the Starting Price, a bookmaker's odds on horses change depending on numerous factors. Bookies consider factors like horses' past performances and the skill and competence of the jockey selected to ride the horse. In handicap events, bookies consider how much weight each horse will be required to carry and how well these horses performed in similar tournaments. 

These considerations usually take place for days and weeks leading up to the race. Once race day arrives, bookies change their odds upwards or downward based on how much money is wagered on a horse. 

The price of a horse decreases when a significant amount is bet on it, mostly because the bookies are attempting to protect themselves from big losses. 

Bookmakers become suspicious of the possibility that some bettors are aware of information they don't have. This serves as a defence mechanism to avoid losing too much money. Horse prices also increase when they have fewer bets, still to the advantage of bookies.

How Is SP Calculated?

There is always a formula used to determine the SP, as each bookie gives various SP on the same horse. Calculating starting price varies from country to country, with some requirements always present. These are:

• A list of prices arranged from longest to shortest.
• The list is split into two equal parts.
• In the list with the longest odds, the Starting Price represents the shortest odds that are currently available.

By employing this technique, players have a guarantee that at least half of the bookies used to calculate this supplies either the Starting Price itself or a longer price.

Why Do Players Accept a Starting Price?

There are several reasons why a bettor might prefer accepting an SP above the fixed odds price given when the bet is placed. Naturally, you won't know the SP, so accepting it involves some risk. But according to statistics, the majority of wagers are made in the last five or so seconds before a race is due to start when the odds are the most erratic.

To take advantage of the odds' inherent volatility while a race is quickly approaching, bettors frequently prefer to wait until the very last second to place their wagers. However, since this isn't always attainable, it makes sense to use the Starting Price offer. In these situations, you might wish to wait as long as possible in the hopes that the price will continue to drift. 

Even while there is no assurance that they won't drift out in favour of coming in, choosing the Starting Price allows you to keep waiting. The SP option makes the most logical sense to choose because, in actuality, a horse's odds of drifting typically imply that they are more likely to keep drifting than to come in significantly.

What Changes the Odds?

The odds of a horse might change for different reasons. Betting platforms use several metrics to determine their starting odds, representing their best estimation of a horse's value. Once their books are open, they take wagers on the different horses and use the money wagered to determine if they were correct about the starting pricing. A bookmaker reacts to new information as well as the money being wagered when a race gets closer to avoid making a mistake.

Best Odds Guaranteed

The introduction of the Best Odds Guaranteed drastically altered how many gamblers perceived the Starting Price. In essence, this offer states that you will be paid out at the longer odds if the Starting Price is greater than the price you accept at the time you place your wager. To put it another way, using our previous example, if you bet at odds of 5/1 and the Starting Price ended up being 7/1, you would be paid at 7/1. If the SP is 3/1, your payout will be 5/1.

Given the existence of the Best Odds Guaranteed, choosing the SP while betting with a bookmaker that provides it is practically worthless. You are paid at the longer rate if the SP is longer than the odds you bet, but you won't get paid if it isn't. From a gambler's perspective, it's a win-win situation, but it's important to remember that not all bookmakers offer the best odds guaranteed, and sometimes those that do only give it on specific races.

It begs the issue of why bookies still offer it, and the response is that not all of them do so, so some bettors will want to go traditionally. It is your responsibility as a bettor to keep an eye out for promotions that will benefit you and take advantage of them while ignoring those that will disadvantage you. Best odds guaranteed offers lean far more toward the former than the latter.