Pari-mutuel is one of the many different forms of betting. In Pari-mutuel betting, the uniqueness is that the wager is not placed on the events of the game, but the bet is placed on other bettors in the game. In Pari-mutuel betting, the player selects the events of the game and places the bet on the players who have bet on the same event in the game.
In this kind of betting, all the wagers go in a pool. This pool is shared equally between those who make the winning selection. The pool is owned by the “house” or what is typically a company or a state-run organisation. The house reserves some percentage of the amount in the pool. Since the whole amount is stored in a pool, the pari-mutuel betting is also called as a pool betting.
Due to its fairness, pari-mutuel wagering is legal in many parts of the world irrespective of the fact that the betting is illegal in that part. Pari-mutuel betting was traditionally associated with greyhound racing horse racing. It then became popular in other sports also. Now, Pari-mutuel betting is a primary form of betting when it comes to sports like Jai alai. Jai alai is a sport that resembles squash and racquetball.
The concept of Pari-mutuel betting:
The concept of Pari-mutuel betting is simple. The bettor selects the sporting event that he wants to bet on just like in the traditional way. The difference lies in the wager. The wager is made on the other players who are betting on the same odds. The odds of winning being the same, the payouts are different.
All the bets are collected in a pool. When the results of the game are out, the total amount that is collected is first added up, and then divided in among the players who bet on that event. The house reserves some of the amounts and then distributes the rest among all the winners in the proportion they had wagered. The terms and the conditions of wagering and distribution are subject to change as the betting is conducted by a local body or a privately owned organisation. Thus the players need to be careful while wagering.
Payouts in Pari-mutuel betting:
In betting, the deal is simple, the players bet on an event in the game if the outcome matches the players bet, the player wins. The returns may be different depending on the rules of the game, but more or less the concept in the same. Players apply different strategies to maximise their odds of winning and to reduce their loss. But when it comes to Pari-mutuel betting, the players cannot use any of the strategies as the bet is placed on the other players and not the events. The payout in Pari-mutuel depends on two factors:
- The number of people placed a wager on the event
- The number of people who picked the winner.
The payouts are calculated on the wager after the betting is closed.
Pari-mutuel betting popularity
Pari-mutuel betting is popular in places where betting is illegal. This makes Parimutuel betting popular worldwide. It is also popular among professional gamblers. For the people who seeking betting as a recreational activity, Pari-mutuel betting is a great way as the players do not have to worry too much about the game and place their bets on trusted players. Pari-mutuel wagering is also popular because the players carry less risk.