An each-way bet is a commonly used wager by sports betting participants where the bookmaker will offer a wager to the individual using two separate bets: a win and a place bet. In order for the individual to win a return on the first part of the bet their selection must win or finish first in the event, and for the place part of the bet to have a return the selection must either win or finish in one of a predetermined place positions for the event. In sports betting, the odds for the second part of the bet – the place part – are generally paid out at a fraction of the win odds.
The calculation of returns uses decimal or fractional odds. This is one of the more complex methods of sports betting, and requires a deep understanding of fractional odds in order to successfully win money. A good example would be a 50 pound each-way bet placed on a particular football team to win the cup at 9-2 with 1/3 the odds placed at 1/2, meaning that the returns for the win portion of the bet would be 50 x 5.5, while the place portion would be 50 x 2.5. If the team wins the cup the total returns are the total of the first two wins, but if the team is beaten in the final the returns are only the total of the place bet, while if they fail to reach the final at all the total wager would be lost.