What Is Pari-Mutuel Betting?
What Is The Pari-Mutuel Definition?
Pari-Mutuel is a method of managing and wagering on horse races at racetracks where the holders of winning tickets split the total amount bet according to their wagers, deducting management, tax, and other percentage.
What Is Pari-Mutuel Betting In Horse Racing?
Pari-mutuel betting, also known as pool betting, is a popular wagering system used in horse racing. In this system, all bets are pooled together and the odds are determined by the amount of money wagered on each horse.
The more money bet on a horse, the lower the odds. The payouts are then calculated based on the number of winning tickets and the amount of money in the pool.
This system allows for fair and dynamic odds, reflecting the collective opinion of all bettors. It's a fun and exciting way to wager on horse racing.
Pari-Mutuel Betting Example
Let's say you bet $10 on a horse to win at odds of 5/1 in a pari-mutuel system. If the total pool is $1000 and $400 is bet on your horse, the odds would be 1.5/1 (40% of the pool).
If your horse wins, the payout would be calculated by dividing the pool by the number of winning tickets.
If there are 40 winning tickets, the payout would be $25 ($1000 divided by 40 tickets). You would receive $25 for your $10 bet, plus your original $10 back, for a total of $35.
