What Is A Pari Mutuel Basis?

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.

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.