Model Perspective

Jul 29, 2026 · Industry Insights

How a Tiny Information Edge Beats Market Smarts in Hong Kong Horse Racing

The article examines Hong Kong’s pari‑mutuel horse‑racing system, explains why it is a negative‑sum game, and shows how Bill Benter’s multinomial logit model combined with public odds created a modest but consistent profit edge, illustrating the broader principle that marginal information advantage can outweigh market consensus.