How to Bet Smarty

By Sean Gregory

Smarty Jones has seized the hearts, and wallets, of sports fans across America. The Preakness Stakes, which the chestnut colt from Philly won by 11.5 lengths, carried a record $59 million handle, or betting pool, and experts predict a $110 million handle, another record, for the June 5 Belmont Stakes day. Smarty's quest for the first Triple Crown since 1978 is sure to draw casual fans to the betting windows--but don't go into the event with blinders on. Some tips on how to enjoy the race while playing it safe:

AVOID OFF-SHORING Have you received spam from Costa Rican off-track-betting facilities offering juicy rebates? Ignore it. These shops aren't regulated and can easily take you for a ride. "A novice should have his head examined if he bets with one of these places," says Richard Bomze, president of the New York Thoroughbred Horsemen's Association.

PHONE IT IN If you want to place a legitimate bet, the easiest way for a novice player to write a Belmont ticket is to start a New York Racing Authority (NYRA) account via telephone. Call 1-800-THE-NYRA; you no longer need to deposit a $100 minimum to bet the Stakes, since NYRA has changed the required balance to a buck. You can phone in bets a minute before post time, but leave at least a week to set up the account because you must mail a check to New York. NYRA accepts wagers from residents in 21 states; for those not covered, outfits like TVG and Youbet.com offer phone and online options, though with higher minimum balances. If you're from one of the seven states where horse betting is barred (Alaska, Georgia, Hawaii, Mississippi, North Carolina, South Carolina and Utah), local law prohibits you from making any interstate wagers.

STUFF IT AWAY Thanks to a healthy collectibles market, if Smarty Jones is the victor, your winning ticket may be worth more if you never cash it in. Here's why: a $2 bet on Smarty Jones probably won't pay off more than $1.50. But if you put the stub in your sock drawer, experts say it's probable you'll be able to sell it as a collector's item for hundreds, if not thousands, of dollars in 10 or so years. Think that sounds crazy? Last week's winning eBay bid for an uncashed $2 Smarty Jones ticket from the Kentucky Derby: $167.50.