Pari Mutuel Betting: Everything You Need To Know

There are few more popular sports to bet on than horse racing, but there is often confusion for newcomers when they learn that there are two different types of wagering options available.

For the most part, fixed odds betting is the most popular, as gamblers will get the price that they have betted on for their selection. However, there is also Pari Mutuel gambling available when it comes to wagering on the racing action.

Understanding the key differences between the two options is essential for newcomers to the sport, as there could be pros and cons when it comes to the type of bet that you're making. Below, you can find out everything you need to know about Pari Mutuel betting and how it differs from fixed odds betting.

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What Is Pari Mutuel Betting?

The biggest difference to bear in mind when Pari Mutuel betting is the fact that returns from your selection will be determined based on the prize pool that has been collected for the race in question.

Therefore, instead of betting against the bookie like you do on the fixed odds, you will be betting against other gamblers when making Pari Mutuel selections. The pool is the returns that are up for grabs for winning selections, meaning that the more that one horse has been backed in this type of betting market, the less that you stand to win.

It is also important to understand that you won't know the final price of your selection before the race starts, meaning that the returns are impossible to work out before the start of the race. Once the race has finished, the returns for each of the selections in the race are determined by the sportsbook, which also takes into account the commission.

Find more information here: twinspires.com/betting-guides/what-is-pari-mutuel-betting/

How Does It Work?

One of the biggest confusions that comes with Pari Mutuel betting revolves around how the betting option works. As the odds aren't fixed, bettors are left in the dark when it comes to the returns that they could stand to win on a victorious selection.

However, it is important to bear in mind that the returns will likely be bigger when it comes to popular racing events such as the Kentucky Derby and Grand National than a smaller race, which isn't going to be a popular betting event. For example, a Pari Mutuel betting race for a big event on the schedule could see a purse of $100,000 put into the pool, which could see a winning selection pay out considerably.

Pay outs in this type of bet will be worked out by dividing the total value of the pool and then working out the amount wagered on each runner in the race. For example, if $20,000 of bets from a $100,000 pool is wagered on one horse, this would see the selection paid out at 4/1. Working out returns from the odds available will be straightforward for anyone that has previously betted on the sport. A $10 wager at odds of 4/1 will see winning selections paid out at $50.

History of Pari Mutuel Betting

Pari Mutuel betting has an esteemed history within gambling, as its roots can be dated back to France in 1870 when Pierre Oller introduced the type of gambling that changed everything within sport. It was accepted by all tracks in France in 1891, before it made its move into American racing before the start of the 20th century, with New York legalising the type of gambling in 1913.

New Zealand would then take the type of betting to the next level by creating a device known as the 'totalizator' which would help record and issue Pari Mutuel betting slips within the nation. This enabled exotic betting become more popular in the country, while doubles and other multiples were also made more straightforward to work out. The United States continued to accept Pari Mutuel betting, and in 1940 the New York City government enacted the 'Pari Mutuel Revenue Law'.

This helped the success of the betting type to increase within the state, and empowered and licensed the form of betting at tracks such as Saratoga and Belmont Park. While this was only the first step made to set boundaries for Pari Mutuel betting within the United States, it was a template that has been followed by other states across the U.S. since.

It has also had a huge impact on the services available when it comes to betting on Pari Mutuel betting online. Fixed odds betting remains the most popular in the United Kingdom, but a Tote bet is a common factor for those attending race days, with Place Pots being a must-do activity before the first race of the day. This is the most popular type of Pari Mutuel bet in the UK, with bettors having to find horses to place in six consecutive races in the first three positions.

I (AKA CatBurg) have a lifelong passion for sports, especially football and basketball. I enjoy the thrill and excitement of sports betting and everything in between. My teams are (Packers #GoPackGo) and who I am betting on!