How Are Pari Mutuel Payouts Calculated?

Parimutuel works by pooling all bets in a given result, then dividing the pool by the total number of betting units held in wagers that match the winning result.

What is pari-mutuel payout?

The pari-mutuel system means handicappers are betting against each other, not against the house. For example, say 90% of the money on a given race were bet on the same horse and only 10% percent of the cash was distributed among the rest of the field.

How do pari-mutuel bets work?

Parimutuel betting (from French pari mutuel, "mutual betting") is a betting system in which all bets of a particular type are placed together in a pool; taxes and the "house-take" or "vigorish" are deducted, and payoff odds are calculated by sharing the pool among all winning bets.