How Does Pari Mutuel Betting Work

Pari-mutuel betting, also known as pool betting, is a unique form of betting. Instead of placing wagers against a bookmaker, you’re placing wagers against other bettors who have placed wagers on the same event. All wagers go into a pool, and the pool is shared equally between those who make the winning selection. As might be expected, a small percentage of all total wagers is deducted by the “house.” When it comes to pari-mutuel betting, the house is typically a state run organization or a private company that provides pari-mutuel betting services.

Unlike some other forms of sports betting, pari-mutuel wagering is fully legal in almost every region around the world. It’s traditionally associated with horse racing and greyhound racing, but it can be used on any sports event in which the participants finish in a ranked order. For example, this is the most popular form of betting when in comes to jai alai, a sport that vaguely resembles squash and racquetball.

Parimutuel betting is a betting system in which all bets of a particular type are placed together in a pool; taxes and the 'house-take' or 'vig' are removed, and payoff odds are calculated by sharing the pool among all winning bets. 'Parimutuel betting differs from fixed-odds betting in that the final payout is not determined until the pool is closed – in fixed odds betting, the payout is agreed at the time the bet is sold.' Parimutuel betting - Wikipedia.

It’s difficult to apply any betting strategy when placing pari-mutuel wagers, as you don’t get fixed odds. Payouts depend on two factors: how many people placed a wager on an event, and how many people picked the winner. Payouts are officially calculated after the betting has closed (i.e. once the event has started or is about to start). As you can see, determining whether or not a selection offers any value can be very challenging.

Fixed odds are very easy to understand. The amount you risk and the expected payout do not change. However parimutuel betting is extremely popular in horse race betting. Understanding how parimutuel betting works is key to successful gambling in horse race betting. History of parimutuel betting. Parimutuel betting was invented in the late 1800’s. The word 'pari-mutuel' comes from a French phrase meaning 'mutual stake'. This already gives us one basic rule about the process - the betting pool comes from the total amount of money wagered, and the money won is calculated as a percentage of this quantity after deducting the taxes and house 'take'. A betting activity with a framework slightly reminiscent of a lottery. The game finds its origins in France as well as the name itself, which literally translates as “mutual betting”. This is a good way to put it, as the number of participants influences greatly the prize pool aggregated after all betting is done.

Pari Mutuel Betting Golf

Nonetheless, pari-mutuel betting is very popular among recreational bettors and professional gamblers alike. For many people around the world it’s the only form of legalized sports betting that’s available to them.

Is Pari Mutuel Betting Legal

In this short guide to pari-mutuel betting we explain exactly how it works, and detail some of the different pari-mutuel wagers that are typically available. We also take a brief look at its history and how this form of betting is used in various countries around the world.