CNBC checked in with Bill, Walter, and Tom Hessert—three brothers who founded Derby Games, a social-based horse race betting platform. Anybody with a computer can bet online or just download their iPhone app to make Belmont wagers. Their data on thousands of historical horse races have given them insight on what bets you should not make. These few pitfalls can help you avoid wasting your money on race day.
Gray horses: Don't bet on any gray horses because their odds are too out of whack. They stand out visually because of their color, so people are more likely to bet on them, "but they aren't any faster than the other horses," Bill Hessert said. Their data show that gray horses don't pay off in the long run.
Post position 7: Rookie bettors just like to say "put 10 bucks on seven"—regardless of what horse that is. The lucky number seven isn't lucky for a smart, rational bettor. The Hesserts advise you not to bet on any horse in the seventh post position, because the odds are too out of line for the quality of the horses.
The biggest long shot: The "dumb money" also likes to take on lottery-ticket type of risks, by putting money on the biggest long shot. Another way of describing the biggest long shot is "the worst horse in the race." Odds that might be shown as 50-1 for the worst horse could actually reflect the reality of it being 100-1 or 200-1 if the true odds were being shown. Stay away from this horse, you'll lose money.
The biggest favorite: Yes, this is the sad one. The biggest favorite in a race is also a bad trade—that's because everybody wants to make their easy money by following the usual media headlines.