Definition
Dutching is a betting strategy where you back multiple outcomes in the same event, adjusting the stake on each selection so that every covered outcome produces the same return. The name comes from the infamous bookmaker "Dutch" Schultz. Unlike arbitrage, dutching typically uses a single bookmaker and does not cover all outcomes.
How It Works
Instead of backing one horse or team, you spread your budget across two or more selections, sizing each stake inversely proportional to its odds. The formula for each stake is: Stake_i = Total Budget x (1/Odds_i) / Sum(1/Odds_j). Dutching is profitable when the combined implied probability of your selections is less than 100%.
Example
Horse race with three favorites:
| Horse | Odds | Calculated Stake | Return if Wins |
|---|---|---|---|
| A | 3.00 | $33.33 | $100 |
| B | 4.00 | $25.00 | $100 |
| C | 6.00 | $16.67 | $100 |
| Total staked | $75 |
Guaranteed profit: 100 - 75 = $25 (33% return) -- provided one of the three horses wins.
Why It Matters
Dutching is ideal when you believe the winner is among a small group but cannot narrow it down to one. It reduces variance compared to a single-selection bet and can yield a guaranteed profit if the combined odds are favorable. It is widely used in horse racing and multi-runner sports like golf and cycling.
Use our dutching calculator to automatically split your stakes across multiple selections and verify whether the operation is profitable.