How Does Pari Mutuel Betting Work
You have two forms of betting: Pari-Mutuel and Fixed Odds. In fixed odds, the prizes are determined before you enter the contest. Games or lotteries on a pari-mutuel basis work differently. Bets are taken and prizes are determined after the game or lottery ends. Fixed odds are very easy to understand. The amount you risk and the expected payout do not change. However parimutuel betting is extremely popular in horse race betting. Understanding how parimutuel betting works is key to successful gambling in horse race betting. History of parimutuel betting. Parimutuel betting was invented in the late 1800’s. Like all horse racing wagering, exacta betting odds are part of the pari-mutuel wagering system. With this system, your final odds are based on all the bets on the that race. This is opposed to fixed-odds wagers in other sports, where you lock down the odds at the time of the bet and they won’t change for you no matter what other bets are placed. Every pari-mutuel bet that is placed on a betting market will go into a specific pool. When the sporting event is completed, the total amount of bets will be added up. As previously mentioned, the house will take a small percentage of the total bets in the pool. With Parimutuel wagering, tote boards or totalizators display the latest betting patterns. As more wagers are placed, the totals are calculated, betting patterns are shown and the odds are changed. It isn’t until the start of the event that the odds are set.
History of Pari-Mutuel Basis
Pari-mutuel comes from the French terms “pari,” which translates to “gamble,” and “mutuel” or “mutual.” Combined, it means “gamble mutually.” The betting method dates back to the late-1800s when Moulin Rouge co-owner Joseph Oller came up with the betting system at race tracks. After serving time for illegal gambling, his method was legalized in 1891.In Pari-Mutuel, You Share the Prize Pool
In pari-mutuel betting, the prizes are determined at the end. Let's say that after the bets were placed, the casino or lottery agency took in a total of $5,000 bets. The management takes 10 percent of that. Taxes may also be deducted before the final prize amount is determined. That final prize is then split between the winners.Types of Bets You Can Place
Pari-mutuel betting is frequently used in horse racing and sportsbook. It can also be used in lotteries. In a lottery, if there is no winner, the money rolls over into the next drawing, which can make the prizes grow rapidly. The larger potential prizes make pari-mutuel basis lotteries more appealing. There are several types of pari-mutuel bets that can be placed. In horse racing, you probably know Win, Place, and Show. Win being you pick the horse that wins the race. Place is a horse that finishes first or second place. Show is a horse that finishes in one of the top three places. You can also bet Across the Board and place all three of those bets at once. You can also bet exacta/perfecta by picking the two horses that finish first and second. This bet requires you to place the horses in the correct order. A trifecta is similar only you're picking the three horses in the correct order. Those are the main bets you'll encounter in horse racing, but there are many others. There are things like doubles and triples where you pick two or three horses that will win successive races. Duets or Any2 bets involve picking the two top finishers, but it doesn't have to be in the correct order. In different countries, the bets may have different names, but the structure of the bet remains the same. Head to an online casino that has horse racing and sportsbetting and make some small bets. You'll find that the winnings you can gain make the pari-mutuel basis well worth your time. Be sure to claim your bonus when you sign up and make a deposit. Win Place Show, huh? So you want to partake in some pari-mutuel wagering? Don’t worry, that’s a fancy term that means “betting among ourselves”. When you place a wager on a horse race you are not betting against the “house” as you would be if you were wagering at a casino in Las Vegas or Atlantic City. Instead, you are betting your horse against every other bettor. Let the best man win!
What is a Win Place Show Bet?
How Does Pari Mutuel Betting Works
Win Place Show bets are commonly called straight wagers and are the most traditional in horse racing. They are lower risk bets compared to exotic wagers like Exactas and Trifectas. These wagers are a good place for the novice horseplayer to jump in. Let’s look at the different wagering requirements.
The Three Different Win Place Show Bets
Win: If you wager $2 to Win on your horse, you collect only if your horse finished first.
Place: If you wager $2 to Place, your horse must finish first or second for you to collect. But remember, you don’t get the Win payoff, just the Place payoff, which is generally smaller than the win payoff.
Show: If you wager $2 to Show, your horse must finish first, second, or third. But remember, you only collect the Show payoff.
Many experts consider playing a horse to Win to be the best bet in horse racing. Before placing a Win bet a horseplayer can see the odds on the tote board and then determine if those odds represent good wagering value.
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Win Place Show Strategy
A term you may hear tossed around at the track is an “Across the Board” wager. Here you are wagering on a horse to Win Place Show on one ticket. If your horse wins, you receive Win Place Show payoffs. If your horse finishes second, you receive Place and Show payoffs; and if your horse is third, you receive the Show payoff only.
These wagers would be considered “low risk” betting, at least compared to the rest of the wagering menu. There also is a lower “takeout” on these wagers. The takeout is the cut the track takes to pay purses and expenses. The “take” on Win Place Show wagers is generally around 17% depending on the jurisdiction. The takeout on Exactas and Trifectas can range from 19% to as much as 30% at some tracks.
Win Place Show Payout Examples
Here are a couple of examples of Win payoffs based on the odds you might see on the tote board:
2/1 pays $6.00
7/2 pays $9.00
9/2 pays $11.00
10/1 pays $22.00
(Based on a $2 win bet).
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