EXGG5300 - Definitions: General Betting: Hedging bets


Bookmakers follow this procedure to limit their possible losses. A bookmaker may accept a bet on a horse at such high stakes that, if it wins, he will be liable to pay out more than he cares to risk. By placing bets on that horse with other bookmakers, or the Tote (see paragraph EXGG5350 he will cover himself, thus transferring part of his liability.