Semi-strong form efficiency in the horserace betting market

This paper reviews the literature addressing the degree to which abnormal returns can be earned in horse race betting markets using publicly available information, other than odds alone. Consequently, the chapter examiners the extent to which horse race betting markets are semi-strong form efficient. The conclusion to emerge is that horse race betting markets incorporate a significant amount of publicly available information. Bettors appear good at discounting simple, single variable information. However, they do not efficiently discount more complex information. Studies that examine the simultaneous effect of several variables on race outcome demonstrate that bettors often do not react to the subtle relationships that exist between variables