Parimutuel Betting: All about Parimutuel Betting System

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Parimutuel betting is the type of betting system used mainly in horse racing, greyhound racing and jai alai. In this type of betting, the sum of all the bets, called the pool, minus taxes and expenses, is shared by the winning bettors according to the payout odds on each horse, greyhound dog, or jai alai team.

The concept of parimutuel betting is different from other familiar types of betting. While when you are playing all the casino games except poker, you are competing against the casino, when you are betting on horses, you are actually playing against the other bettors. Parimutuel betting is also different from fixed odds betting, the most common betting system used in sports wagering. In parimutuel betting, the final payout odds cannot be predicted until the pool is closed as opposed to fixed odds betting, in which, as the name implies, the payout odds are fixed.

A 19th century French perfume merchant by the name of Pierre Oller is the one who is responsible for introducing the parimutuel betting system to the horse racing betting world. In 1854, Mr. Oller came up with the idea to sell horse racing tickets and to divide the profits with the winners. The betting system was named pari mutuel, which means betting amongst ourselves.


France was the first country to regulate parimutuel betting in 1887. In 1927, parimutuel betting becomes the legal system at all the UK racetracks. Not long afterwards, the United States had legalized the parimutuel system.

At Mr. Ollers times, the race book used to collect 5 percent of the pool to cover expenses while the rest of the pool was shared by the winning bettors according to the payout odds on each horse. Later, when the parimutuel system was already legalized in the US, a young engineer named Henry Straus invented the Toalisator, which was the first mechanical calculating machine. The first Toalisator was adopted by Pimlico race track in 1930. Contemporary racetracks are calculating the odds using advanced computers.
Parimutuel betting is particularly used at race sports such as horse racing or greyhound racing and in jai alai. While in horse and greyhound racing you usually bet on the first, second, or third horse to finish the racetrack, in jai alai you bet the same way on the team who wins the game. There are three basic types of bets plus variety of exotic bets with each type of bet can have its own pool. The betting types in American racetracks differ from those available in British or Australian racetracks.

In American racetracks, you can wager on Win, Place or Show. If you bet on the Win, you would collect your share of the pool if your horse finishes first. If you bet on the Place, you would take home the money if your horse would finish first or second, and if you bet on Show, you would win if the horse will reach either first, second or third place.

In racetracks in the UK, you can bet on either Win, Place or Each Way. The Way bet is the same as in US racetracks. The place bet in the UK varies according to the number of runners in the race. If there are more than 5 and less than 7 runners, your horse has to finish at one of the first two places in order for you to win your share of the pool. If there are more than 8 runners but less than 15, your horse can make it to the third place as well. If there are more than 16 runners at the race, your horse can finish first, second, third or fourth. The Each Way bet is a combination of Win and Place.

The Australian types of bets are similar to those accepted in the UK racetracks accept a few differences. The Place bet is on the three first places, unless there are less than 7 runners at the race. In this case, the third place is not payable. If there are only 4 runners or less in a race, the second place is not payable as well.



Eden Katz is a college student studying psychology. She likes writing about her experiences playing Video Poker in Online Casinos and poker rooms.