Parimutuel Betting Guide

What is Pari-Mutuel Betting?

Parimutuel betting is a form of pooled betting where payouts are awarded on horse races based on the total size of the pool. You aren’t betting against the house in the parimutuel system. Instead, you are wagering against other gamblers. 

The pool of bets is split among all gamblers who predict the winner of the race or place. You can also win prizes for making exotic bets, such as the tricast. 

The parimutuel betting site or racetrack will display the expected return for each result, depending on the current size of the pool. Unlike fixed odds horse race betting, however, you won’t know the exact payout until the race is over. 

Parimutuel Betting Example

Let’s take a look at a classic example of pari-mutuel gambling. A Grand National pool collects $65,000 in bets across the top four favorites. You must also factor in the pari-mutuel betting site’s fee which is deducted when you place your bet. 

Imagine the fee is 10%, so the total pool left is $58,500. Here’s how the four horses line up with the total amount bet on each:

Good Lad: $20,000
Flying Boy: $15,000
Greenham Gauge: $13,500
It’s All Good: $10,000

We know the total parimutuel pool is $58,500 and the individual pools for each horse. We can now calculate the approximate odds for each horse by dividing the total pool by the individual pool:

•    Good Lad: $58,500 / $20,000 = 2.95 (+195)
•    Flying Boy: $58,500 / $15,000 = 3.90 (+290)
•    Greenham Gauge: $58,500 / $13,500 = 4.33 (+333)
•    It’s All Good: $58,500 / $10,000 = 5.85 (+485)

In our example, Good Lad becomes the pre-race favorite, with the most amount wagered. Your return would only be $295 for a $100 bet. On the flipside, It’s All Good represents the fourth favorite here, with a return of $595 for a $100 wager. 

Popular Pari Mutuel Bets

There is a host of pari-mutuel betting markets you can access at the track or online at ADW (Advance Deposit Wagering) bookmakers. 

Win

The win bet is the easiest and most popular parimutuel betting market. It’s a straight bet on the winner of the race. Your pick must come first for the bet to win. 

Place

The Place bet covers 2nd, 3rd, and 4th places. Your stake is split to around a quarter of the odds if your pick finishes behind the winner. 

Show

The Show is a bet on your horse to finish anywhere in the top three places (1st, 2nd, or 3rd). It’s a good alternative option to the Place. 

Exotic Bets

Exotic pari-mutuel wagers offer more interesting ways to win when you predict horse races. They require you to accurately predict not only the finishing horses, but also their exact finishing position:

• Exacta: 1st and 2nd places in the correct order
• Trifecta: 1st, 2nd, and 3rd in the correct order
• Superfecta: 1st, 2nd, 3rd, and 4th in correct order 
• Quinella: 1st and 2nd in any order

Daily Double: A common pari-mutuel bet found at racetracks. This is a double bet on the winner of two races. For example, a 5-3 bet is a Win wager on Horse 5 and Horse 3 winning their respective races. 

Pick 3: You pick the winners of three races in a Pick 3. 
Pick 4: With Pick 4, you choose the winners of four races. 
Exotic Boxes: Online race betting sites let you combine multiple parimutuel wagers on one slip. You can bet the “boxes” on exotics like the trifecta and cover multiple outcomes on the same slip.

For example, imagine you choose three horses in a trifecta box. Essentially, you cover the three horses to finish in any order, like this (where your picks are Horses 2-3-5:

• Bet 1: 2-3-5
• Bet 2: 2-5-3
• Bet 3: 3-2-5
• Bet 4: 3-5-2
• Bet 5: 5-2-3
• Bet 6: 5-3-2