Rule 4 Deductions Explained

Few things are more satisfying than cheering in a winner in horse (or greyhound) racing, logging in to your online betting account, and looking on admiringly at your newly improved balance. However, there are occasions when that new balance may be less than expected. How deflating. Why would the bookmakers pay you less than you hoped for?

Whenever your winnings don’t match your expectations, the most common explanation is that your bet has fallen victim to the dreaded Rule 4 deduction.

In the realm of betting returns, the word “deduction” rarely signifies anything good. However, as we shall see, Rule 4 Deductions are perfectly fair and acceptable once we understand the reasoning behind this industry-wide procedure.

What Is A Rule 4 Deduction?

A Rule 4 Deduction is an amount deducted from winning bets. This deduction is triggered whenever one or more horses are declared a non-runner after the time at which the bet is placed.

If you take a price on a horse and a rival horse subsequently withdraws, your bet will be subject to a Rule 4 Deduction.

If you bet at SP, your bet will not be subject to a Rule 4 Deduction - unless the withdrawal occurs so late that the bookmakers do not have time to form a new market, e.g. a horse refusing to enter the starting stalls.

Why Do Rule 4 Deductions Exist?

Whenever a horse withdraws from a race, bookmakers create new odds for each remaining runner. These odds reflect the horse’s chance of winning the race, given the runners who remain in contention. All bets struck after the withdrawal use the newly formed prices.

However, that still leaves the problem of what to do about the bets placed before the announcement of the non-runner. Rule 4 is the mechanism the bookmakers use to deal with this issue, with the aim of bringing the bets placed before the non-runner into line with the new market.

Let’s say, for example, that you log in on the morning of the race and place a £10 win bet on Horse B at odds of 15/8 in the following race:

• Horse A – 5/6
• Horse B – 15/8
• Horse C – 7/1
• Horse D – 9/1

Two hours after you place your bet, Horse A is declared a non-runner. Following the announcement of the non-runner, the bookmaker released new prices as follows:

• Horse B – 4/6
• Horse C – 4/1
• Horse D – 5/1

Your 15/8 price was given on the assumption that Horse B must beat Horses A, C, and D to win the race, NOT that it would only need to beat Horses C and D.

Is it fair that the bookmaker must return all stakes on Horse A and still pay you at odds of 15/8 if Horse B wins? It isn’t. The bookmaker will, therefore, apply a rule four deduction to all prices taken before the announcement of the non-runner.

Rule 4 is effectively the bookmaking industry’s way of protecting itself against this loss-making scenario and ensuring that the odds they pay out fairly reflect the runners that actually take part in the race.

How Much is Deducted From My Winnings as a Resulted of a Rule 4?

Rule 4 Deductions are expressed as pence per pound of winnings, ranging from 5p per £1 to 90p per £1.

The size of the Rule 4 deduction is inversely related to the odds of the withdrawn horse. The lower the odds, the higher the deduction and vice versa. The following table details the Rule 4 deductions for the various price ranges.

All bookmakers follow this standardised deduction table. However, some ignore the 5p level and will not apply a deduction if the withdrawn runner is 10/1 or higher.

Rule 4 Examples

So that’s the theory, but how does it work in practice? Let’s take a look at a couple of examples.

Example 1: 5/6 Withdrawal

For our first example, we will return to our four-runner race in which we placed a £10 win bet on the 15/8 second favourite before the withdrawal of the 5/6 market leader.

Thankfully, our bet does the decent thing and sees off his two remaining rivals with the minimum of fuss. A payout is in order, but how much will it be?

Ignoring Rule 4 considerations, a successful £10 win bet at odds of 15/8 returns £28.75. However, we must consult the Rule 4 Deduction table above to determine the correct payout.

As we can see, a 5/6 withdrawal triggers a 50p per £1 in winnings deduction. The first thing to note here is that the deduction applies only to the winnings received from the bet, not your stake.

Your total deduction in this instance will be 18.75 x 50p = £9.37.5, creating total returns of: £10 (stake) + £18.75 (winnings) - £9.37.5 (Rule 4 Deduction) = £19.38.

Example 2: 8/1 Withdrawal

For our second example, we place a £10 win bet on the 6/1 second favourite for the big handicap on Saturday afternoon. After placing our bet, an 8/1 chance is withdrawn. Continuing our good run of form, our 6/1 selection does the business.

Now familiar with the Rule 4 system, we realise that we won’t receive the full £70 for a £10 winner at 6/1. How much should we get this time?

Again, returning to the deductions table, we find that an 8/1 withdrawal triggers a 10p per £1 in winnings deduction. The total amount deducted will be 60 x 10p = £6.

This scenario creates total returns of £10 (stake) +£60 (winnings) - £6 (Rule 4 Deduction) = £64.

What if More than One Horse is a Non-Runner?

Regular racing fans will know that the number of non-runners doesn’t always end at one. So what happens if more than one horse withdraws after the time we place our bet?

This process works as you might imagine. In this instance, the deduction applied will equal the combined deductions triggered by the two non-runners.

Two Non-Runner Example

On the morning of the race, you place a £10 win bet on a well-thought-out 12/1 selection. However, a change in the advertised going sees two runners withdrawn at odds of 5/1 and 11/1.

Consulting the Rule 4 Deductions table, we see that a 5/1 withdrawal triggers a 15p deduction, whilst an 11/1 shot triggers a 5p deduction. This double withdrawal creates total deductions of 20p per £1 in winnings.

Assuming your selection comes home in front, the deduction applied to your winnings will be 110 x 20p = £22. This situation creates total returns of £10 (stake) + £110 (winnings) - £22 (Rule 4 Deduction) = £98.

What About Best Odds Guaranteed?

If you take a price in a Best Odds Guaranteed race, Rule 4 Deductions are applied in the standard. However, if the SP is bigger than the price you took, you will be paid out at the full SP.

What About Ante-Post Bets?

Rule 4 Deductions do not apply to ante-post bets. The prospect of taking a big price about a runner with no possibility of seeing those odds reduced is part of what makes ante-post betting so appealing. However, there is a downside to this as (with the exception of Non-Runner Money-Back specials) you will not receive your stake back if your horse does not line up on the day.

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