Mutual betting is what pari-mutuel horse racing is all about. In fact, the term pari-mutuel is the French term for mutual betting. That being said, the idea and system of pari-mutuel started in France way back in 1870s. This system had its roots in betting games at the time and is still in use as of today. The pari-mutuel system pools all the bets made. After deducting the income, so-called house-take, of the place of event, the payoff odds will be calculated through dividing the prize pool to the winners. Pari-mutuel is also known as tote in some countries.
Gambling and betting games incorporated in some sporting event such as horse racing, jai alai, dog racing or any sports event that make use of the pari-mutuel system. One of the main reasons why gambling/betting organizers utilize this system is that they may lose money by paying all the winning bettors if they have a fixed jackpot prize. Instead, the payoffs will be shared by the winning bettors. If you are into thrilling moments just like betting, you may like the pari-mutuel system because you do not know what would be at stake. However, if you choose the favorite to win, you may end up winning less than your bet because the pooled amount will be shared by several winners. Keep in mind that most of the horse racing bettors will place bets on the favorites.
Another advantage of this system is that a bettor can play and place their bets without having to be present in the location of the horse racing. In other words, you can place your bet online from your home or wherever you are in the country or even while traveling on the other side of the world. This system is state regulated and hence, the total pooled amount will be deducted with some fees imposed by the state where the horse racing betting actually occurs.
An example of how the payout will be calculated
There are 8 horses, competing for the race and the wagers are as follows:
|
Horse
number
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
|
Wagered
amount, $
|
100
|
65
|
115
|
35
|
50
|
180
|
25
|
165
|
The pooled amount will be $735. Remember that acceptance of the wagers will end before the race starts. If the 4th horse won the race, then all those who bet on it win. Normally, the commission deducted from the pooled amount is 14.25% and applying that, the payout will be $630.26. Since this is the payout, it will be shared by the winners fairly. The odds would be $630.26/$50 = $13. This means $13 per dollar wagered. Winners earn $12 aside from getting back their $1.
No comments:
Post a Comment