Parimutuel betting

In some countries it is known as the tote after the totalisator, which calculates and displays bets already made.

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.

Using the wagers and commission rate above (14.25%), an approximates table in decimal odds and fractional odds would be: 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.

The rounding loss is known as breakage and is retained by the betting agency as part of the commission.

In some situations, a negative breakage may occur — for example, in horse racing when an overwhelming favorite wins (or shows or places).

[3] The parimutuel calculation results might call for a very small winning payout (say, $1.02 or $1.03 on a dollar bet), but legal regulations might require a larger payout (e.g., minimum $1.10 on a dollar bet).

After the wagering company deducts a commission rate of r from the pool, the amount remaining to be distributed between the successful bettors is WR = WT(1 − r).

The parimutuel system was invented by French-Catalan entrepreneur and showman[5] impresario Joseph Oller in 1867.

[6] 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", invented by the Australian engineer George Alfred Julius.

The first was installed at Ellerslie Racecourse, Auckland, New Zealand, in 1913, and they came into widespread use at race courses throughout the world.

Independent off-track bookmakers typically have a smaller take and thus offer better payoffs, but they are illegal in some countries.

A box consists of a multiple wager in which bettors bet all possible combinations of a group of horses in the same race.

In recent times the "Roving Banker" variant for Trifecta and First4 betting is now offered.

[11] The following pools are operated at meetings in mainland Britain: Exotic wagers are usually made on horses running at the same track on the same program.

In the United Kingdom, bookmakers also offer exotic wagers on horses at different tracks.

Tote Ireland operates the following pools Bet types for harness racing (trotting): The Hong Kong Jockey Club (HKJC) operates the following common bet types and pools for horse racing.