Rule 4 on bet365, like across the wider betting industry, refers to a standard deduction applied to winnings when a participant is withdrawn from an event after the odds have been established. This deduction is put in place because bookmakers set their initial odds assuming all advertised participants will compete.
Understanding Rule 4 Deduction
The Rule 4 deduction is an industry standard that ensures fairness when circumstances change in a sporting event. Specifically, it is a quoted deduction that is applied for every 1.00 unit of currency won on a bet. When bookmakers, including bet365, initially offer odds on an event, they do so with the expectation that all listed participants will take part. If a participant withdraws before the event begins, the chances of the remaining participants winning generally improve. To account for this altered probability and maintain a balanced market, the Rule 4 deduction is applied to winning bets.
When Does Rule 4 Apply?
Rule 4 commonly applies in events where participants can withdraw at short notice, such as:
- Horse Racing: This is the most frequent application of Rule 4. If a horse is withdrawn from a race after the market has opened and odds have been set, Rule 4 will apply to all bets placed before the withdrawal.
- Greyhound Racing: Similar to horse racing, withdrawals can trigger Rule 4 deductions.
- Other Sports: While less common, it can also occur in other sports where a key participant withdraws from an event (e.g., a tennis player withdrawing from a tournament before their match, or a golfer from a tournament).
The amount of the deduction depends on the odds of the withdrawn participant at the time of their withdrawal. The shorter the odds of the withdrawn participant, the greater the deduction will be from winning bets, as their removal has a more significant impact on the remaining field's chances.
How Rule 4 Affects Your Winnings
When Rule 4 is applied, the deduction is calculated from your winnings, not your original stake. This means your initial stake is returned, and then a percentage or set amount is taken from the profit you made on the bet.
Here's a conceptual example to illustrate how the "for every 1.00 unit of currency won" deduction works:
| Original Winnings | Hypothetical Rule 4 Deduction Rate (e.g., 5p in the £1) | Total Deduction | Final Payout |
|---|---|---|---|
| £10.00 | £0.05 per £1.00 | £0.50 | £9.50 |
| £50.00 | £0.05 per £1.00 | £2.50 | £47.50 |
(Note: Actual deduction rates vary based on the odds of the withdrawn participant and are determined by industry standards.)
For detailed information on bet settlement and returns, you can refer to bet365's settlement and returns information.
Why Rule 4 is Standard Practice
Rule 4 is a crucial mechanism for bookmakers to manage risk and maintain fair odds in dynamic betting markets. Without it, if a strong favourite withdrew from an event, bets placed on other participants would suddenly become significantly more likely to win at inflated odds, leading to substantial losses for the bookmaker. By applying Rule 4, the odds are effectively adjusted post-facto to reflect the true probability of the outcome after a withdrawal. This ensures the integrity of the betting market and provides a consistent framework across different betting platforms.
