A handicap bet in horse racing is a type of wager designed to level the playing field between horses of varying abilities. In a handicap race, each horse is assigned a weight to carry based on its past performances, with stronger horses carrying more weight and weaker horses carrying less. This system aims to make the race more competitive, as it compensates for differences in skill levels. When placing a handicap bet, you would select a horse to win, considering its assigned weight and how it has performed under similar conditions.