  We find a remarkable agreement between the statistics of a randomly divided
interval and the observed statistical patterns and distributions found in horse
racing betting markets. We compare the distribution of implied winning odds,
the average true winning probabilities, the implied odds conditional on a win,
and the average implied odds of the winning horse with the corresponding
quantities from the "randomly broken stick problem". We observe that the market
is at least to some degree informationally efficient. From the mapping between
exponential random variables and the statistics of the random division we
conclude that horses' true winning abilities are exponentially distributed.
