These races are one step above most Claiming Races, the conditions are very similar except that the entered horses are not for sale.  The purses are generally higher than Maiden, and Claiming Races.  Allowance Races normally contain horses that have already broken their maiden. (won a maiden race)  Horses entered in Allowance Races aren’t quite ready for Stakes Races, they are, as a rule, being prepared for that eventual step up.  Most Allowance Races have some sort of stipulation, such as; “3 year old and up, non-winner of three life-time starts.”  

So to review the hierarchy of thoroughbred horse racing, beginning at the top;  Stakes/Handicap Races, the pinnacle of a horse’s career.  Allowance Races come next, below which are Claiming Races, and the first rung of the racing ladder is the Maiden Race.  A nice betting angle to be aware of is if a horse dropping down a level of competition.  If I see in a horses race history that he has previously run in Stakes Races, but find him running in an Allowance Race, that is a major play for me- provided the odds aren’t too low.