A place bet backs a selection to finish within the top specified positions in a race or competition. In horse racing, this is most commonly the first two, three, or four finishers depending on the field size. Unlike a win bet, you do not need your selection to finish first — just within the paying positions.
Place bets pay a fraction of the win odds, typically 1/4 or 1/5 of the win price. For a horse at 10/1 with 1/4 each-way terms, the place odds are 10/4 = 2.5/1. This significantly reduces the return compared to a win bet, but the selection has a much higher probability of placing than winning.
Place-only betting (as opposed to the place component of an each-way bet) is available as a standalone market at many bookmakers. It is useful when you believe a horse has a strong chance of placing but limited chance of winning — perhaps a proven front-runner that sets a fast pace and fades late, consistently finishing second or third.
Bookmaker promotions frequently target place markets. Extra place offers pay an additional placed position at 1/4 odds — so a race paying 3 places conventionally might offer 4 places as a promotion. This significantly improves the value of each-way and place bets, especially on bigger-priced selections in competitive handicaps.
Example
You place a £10 place-only bet on a horse at 16/1. Terms: 1/4 odds, 4 places. The horse finishes 4th (the last paying place). Place odds: 16/4 = 4/1 (5.0 decimal). Return: £10 × 5.0 = £50. Profit: £40. Had you backed it to win only, a 4th place finish would have returned nothing.