The clean way to run it
Pick the race and print the full list of runners. Set one stake everyone can smile about, a few euro or pounds a head. Fold every horse's name into the hat, including the outsiders: with forty runners in the Grand National, one entry per person works; with smaller fields, let people draw two. Draw in public, write every allocation down where all can see it, and never let anyone swap.
Splitting the pot
The classic split is 60% to the winner, 25% to second, 15% to third. For big groups, pay fourth place its stake back. House rule worth adopting: last-placed finisher gets a token prize, because it keeps the back of the field cheering too.
Non-runners
Decide before the off, not after: the fair default is that a non-runner's holder gets their stake back and sits the race out, funded by trimming the winner's share.
Keeping it legal and kind
In Britain and Ireland a genuine workplace or friends sweepstake, where all stakes are paid out as prizes and nobody takes a cut, sits outside commercial gambling rules. Keep it that way: no organiser's fee, all money returned as prizes, adults only. And if racing is more than a once-a-year flutter for anyone in the room, this page stays a click away.
Cheltenham and the National
The two great sweepstake races are the Cheltenham Gold Cup and the Grand National. Our festival guides publish printable sweepstake kits, runner lists formatted for the hat, in the week of declarations.