Horse racing data permit interesting tests of attitudes toward risk. The present paper studies a new sample of racetrack results from Atlantic City, New Jersey. The questions examined are: (1) Are the market odds the best data for predicting the order of finish? (2) Do horses go off at odds that reflect their true probability of winning? (3) Is there any evidence that late bettors have better information than early bettors? It is found that market odds predict the order of finish well, but that ‘favorites’ are good bets and ‘long shots’ are poor ones. The data suggest that there does exist an ‘informed’ class of bettors and that bettors are on the whole neither risk neutral nor risk averse.