Handicap comes from an old method of setting odds in a horse race or other contest. Two bettors would engage a neutral umpire to determine the odds in an unequal contest. The bettors would put their hands holding forfeit money into a hat or cap. The umpire would announce the odds and the bettors would withdraw their hands—hands full meaning that they accepted the odds and the bet was on, or hands empty meaning they did not accept the bet and were willing to forfeit the money. If one forfeited, then the money went to the other bettor. If both agreed on either forfeiting or going ahead with the wager, then the umpire kept the money as payment. The word is a shortening of hand in the cap.
Copyright 1997-2016, by David Wilton