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Parimutuel betting (from the French language: pari mutuel, mutual betting) is a betting system in which all bets of a particular type are placed together in a pool; taxes and a house take are removed, and payoff odds are calculated by sharing the pool among all placed bets. French (français, langue française) is one of the most important Romance languages, outnumbered in speakers only by Spanish and Portuguese. ...
The parimutuel system is used in gambling on horse racing, greyhound racing, jai alai, and all sporting events of relatively short duration in which participants finish in a ranked order. A modified parimutuel system is also used in some lottery games such as Lotto South. Gambling has had many different meanings depending on the cultural and historical context in which it is used. ...
Horse-racing is an equestrian sporting activity which has been practiced over the centuries; the chariot races of Roman times were an early example, as was the contest of the steeds of the god Odin and the giant Hrungnir in Norse mythology. ...
Photo finish of a greyhound race in Tampa, Florida, USA on February 9, 1939 Greyhound racing is the sport of racing greyhounds. ...
Now defunct Milford Jai-Alai Fronton in Milford, Connecticut. ...
A sport consists of a normal physical activity or skill carried out under a publicly agreed set of rules, and with a recreational purpose: for competition, for self-enjoyment, to attain excellence, for the development of skill, or some combination of these. ...
A lottery is a popular form of gambling which involves the drawing of lots for a prize. ...
Lotto South was a multi-state lottery game in Georgia, Kentucky, and Virginia. ...
Parimutuel gambling is frequently state-regulated, and offered in many places where gambling is otherwise illegal. Parimutuel gambling is often also offered at "off track" facilities, where players may bet on the events without actually being present to observe them in person.
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. Fixed-odds gambling is a form of gambling against odds offered by a bookmaker, an individual, or on a bet exchange. ...
Example of parimutuel betting
Consider a hypothetical event in a country using a decimal currency such as dollars which has 8 possible outcomes. Each outcome has a certain amount of money wagered: Decimal currency is the term used to describe any currency for which the ratio between the basic unit of currency and its sub-unit is a power of 10. ...
This page is about the dollar currency. ...
Outcome 1 – $30.00
Outcome 2 – $70.00
Outcome 3 – $12.00
Outcome 4 – $55.00
Outcome 5 – $110.00
Outcome 6 – $47.00
Outcome 7 – $150.00
Outcome 8 – $40.00
Thus the total pool of money on the event is $514.00. Following the start of the event, no more investments are accepted. The event is decided and the winning outcome is determined to be Outcome 4 with $55.00 invested. The payout is now calculated. First the commission or take for the wagering company is deducted from the pool, for example with a commission rate of 14.25% the calculation is: $514 - 0.1425 * $514 = $440.76. The remaining amount in the pool is now distributed to those who invested in Outcome 4: $440.76 / $55 = $8.00 per $1.00 invested. Thus, in decimal odds, outcome 4 is said to pay out $8.00. Fixed-odds gambling is a form of gambling against odds offered by a bookmaker, an individual, or on a bet exchange. ...
Often at certain times prior to the event, betting agencies will provide approximates for what should be paid out for a given outcome should no more bets be accepted at the current time. Using the example above, an approximates table using the same commission rate in decimal odds would be:
Outcome 1 – $14.69
Outcome 2 – $6.30
Outcome 3 – $36.73
Outcome 4 – $8.00
Outcome 5 – $4.00
Outcome 6 – $9.38
Outcome 7 – $2.94
Outcome 8 – $11.02
In real-life examples such as horse racing, the pool size often extends into millions of dollars with many different types of outcomes (winning horses) and complex commission calculations. Horse-racing is an equestrian sporting activity which has been practiced over the centuries; the chariot races of Roman times were an early example, as was the contest of the steeds of the god Odin and the giant Hrungnir in Norse mythology. ...
Sometimes the amounts paid out are rounded down to a denomination interval – in the United States and Australia, 10 cent intervals are used. The rounding loss is sometimes known as breakage and is retained by the betting agency as part of the commission.
History of parimutuel betting The parimutuel system was invented by Parisian perfume maker Pierre Oller in 1865 when asked by a bookmaker friend to devise a fair system for bettors which guarantees a fixed profit for the bookmaker. A bookmaker, bookie or turf accountant, is an organisation or a person that takes bets and may pay winnings depending upon results and, depending on the nature of the bet, the odds. ...
The large amount of calculation involved in this system led to the invention of a specialized mechanical calculating machine known as a totalisator, "automatic totalisator" or "tote board". The first was installed at Ellerslie Racecouse, Auckland, New Zealand in 1913, and they came into widespread use at race courses throughout the world (the U.S. introduction was 1933 at Arlington Park, near Chicago,IL USA). A totalisator or totalizator (tote board in common parlance) is the name for the computerised system which runs parimutuel betting, calculating payoff odds, displaying them, and producing tickets based on incoming bets. ...
1913 (MCMXIII) is a common year starting on Wednesday. ...
Arlington Park is a horse racetrack in the Chicago suburb of Arlington Heights, Illinois. ...
Parimutuel bet types There may be several different types of bets, in which case each type of bet has its own pool. The basic bets involve predicting the order of finish for a single participant, as follows:
In North America World map showing North America A satellite composite image of North America. ...
- Win - A first place finisher wins the bet.
- Place - Either a first or a second place finisher wins the bet (at most tracks the race must have at least four runners in it for place betting to be conducted).
- Show - First, second, or third place finisher wins the bet (at most tracks the race must have at least five runners in it for show betting to be conducted).
- Across the Board: A combination triple-bet of Win, Place, and Show
In Australia - Win - Runner must finish first.
- Place - Runner must finish first, second or third place. (In events with five to seven runners, no dividends are payable on third place ("NTD" or No Third Dividend) and in events with 4 or less runners, only Win betting is allowed).
- Each-way - A combination of Win and Place. A $5 bet Each-way is a $5.00 bet to Win and a $5.00 bet to Place, for a total bet cost of $10.
In Ireland and the United Kingdom - Win - Runner must finish first.
- Place - Runner must finish within the first two places (in a 5-7 runner race), three places (8-15 runners) or four places (16+ runners).
- Each-way - Charged and settled as one bet to win and another bet to place (if asking for a bet of "five pounds each way" you will be expected to pay ten pounds).
Depending on the facility rules, which might vary from event to event, other bets may also be offered which allow the user to pick the finish of more than one participant, or more than one event. These are called exotics, and generally pay higher dividends. However, the facility's take is usually higher for these bets as well. The major exotics (in North America and Australia) are: - Exacta (exactor, perfecta) - Picks the first and second place finishers, in order.
- Quinella - Picks the first and second place finishers, in either order.
- Trifecta (triactor) - Picks the first, second, and third place finishers, in order.
- First Four - First, second, third and fourth in correct order.
- Superfecta - First four finishers in order.
- Daily/Extra Double - Picks the first place finishers in two different events.
- Quadrella - First in four consecutive races.
- Pick 6 (jackpot) - Picks the winners in six consecutive events.
Strategy and comparison with independent bookmakers Unlike many forms of casino gambling, in parimutuel betting the gambler bets against other gamblers, not the house. The science of determining the outcome of a race is called handicapping. The Trump Taj Mahal in Atlantic City, New Jersey. ...
Handicapping, in sport and games, is the practice of assigning advantage through scoring compensation or other advantage given to different contestants to equalize the chances of winning. ...
It is possible for a skilled player to win money in the long run at this type of gambling, but overcoming the deficit produced by taxes, the facility's take, and the breakage is difficult to accomplish and few people are successful at it.
Independent off-track bookmakers have a smaller take and thus offer better payoffs, but they are illegal in some countries. However, with the introduction of Internet gambling has come "rebate shops". These off-shore betting shops in fact return some percentage of every bet made to the bettor. They are in effect reducing their take from 15-18% to as little as 1 or 2%, still ensuring a profit as they operate with minimal overhead. Rebate shops allow skilled horseplayers to make a steady income. Online gambling takes several forms. ...
See also A betting exchange or p2p gambling website is a fairly recent Internet phenomenon, and is used to describe a website acting as a broker between parties for the placement of bets (gambling, in other words). ...
A bookmaker, bookie or turf accountant, is an organisation or a person that takes bets and may pay winnings depending upon results and, depending on the nature of the bet, the odds. ...
Spread betting is a form of gambling on the outcome of any event where the more accurate the gamble, the more is won and conversely the less accurate the more is lost. ...
External links - The Betting-Ring - info on betting links around the world
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