Pari-mutuel Horse Racing: How Pool Betting Works

Pari-Mutuel Horse Racing for Beginners

Pari-mutuel horse racing betting may be something you’ve heard of without knowing what it actually is. Horse racing betting sites mention pari-mutuels all the time, but beginners can bet left out of the loop.

Pari-mutuel horse racing betting is all about wagering against other players in a pool, instead of betting against the house. It’s similar to other bet types, but your payout is determined by how many other bettors wagered on the same race.

We’re here to help new players understand the complex world of horse racing betting. This guide will take you through how pari-mutuel bets work, why the pool system exists, and what the benefits are for bettors.

What Is Pari-Mutuel Betting in Horse Racing?

Pari-mutuel betting, or pool betting, is different than fixed-odds betting. It’s a form of wagering where all pre-race bets of the same type are grouped into a single pot. Those who win their bets receive an amount that is relative to the size of that pot.

So, you’re betting against other players rather than the sportsbook. Your chosen betting site merely acts as a middle man between all wagers… and takes a cut for themselves, of course.

Bet types include win, place, show, and a range of exotics. You can read more about horse racing bet types here.

For beginners, focus should be on betting on which horse will win a race. As you develop your skills, you’ll likely look for more intricate wagers, all of which are covered in the pari-mutuel pools.

Pari-mutuel horse racing example in a sportsbook

The best way to understand pari-mutuel horse racing betting is by example.

Say you and 99 other people bet on the first race at Parx, at online sportsbook BetOnline. You each pay $2 and pick your horses. You and three others are the only bettors to back #5.You strike lucky and #5 wins the race! Your payout is calculated by dividing the entire pool (100 bettors x $2 each = $200) by the number of winners (4). So, you and three other winners walk away with $50 each.

The above example is the easiest form of horse racing pari-mutuel betting because we assume all pooled bets are backing winners. However, it gets more complicated when you bet on the place and show, as well as dipping into exotic bets like exactas and trifectas.

However, the principle is the same regardless of the bet type. All bets of the same type are added to a pool and you are paid out from that pool.

Live Pari-Mutuel Betting in Horse Racing

Live pari-mutuel horse racing is a great way to wager during races. Here, you can bet on which horse will win, place, or show as the action unfolds. The pools are usually smaller because most bettors stick to pre-race bets, so you’re not competing with as many people.One of the best ways to enjoy live horse race betting is through an online sportsbook. It means you can enjoy live horse racing pool betting while watching the action too. The streams run alongside pari-mutuel betting, so you can time your wagers to the exact moment when a horse’s odds are at their highest, or perhaps when you sense a jockey is about to push into a winning position.

Most Popular Pari-Mutuel Wagers in Horse Racing

There are a number of different pari-mutuel bets you can place at online sportsbooks. The choice ranges from simple Win bets, to more complex exotic bets. Discover more about each popular bet type below:

Win: This is the most straightforward bet and requires you to pick a horse you think will win the race. The pari-mutuel pools here can be enormous, but if you pick a big favorite then your payout won’t be so huge.
Place: Betting on which horse will finish second can often be more lucrative than a win bet because it’s harder to predict. The pool can still be large.
Show: A show bet is a wager on which horse will finish third, which again is tricky. Big outsiders can often upset the show betting pool and pay out big sums to very few people.
Exacta: An exacta bet is where you back the first and second finishers in a race, in the correct order. It’s the first exotic bet most people come across and the pool is usually large.
Trifecta: Trifectas work like exactas but here you need to select the first, second, and third-placed horses in order. You may be the only person with a winning combination in your pari-mutuel trifecta pool.
Superfecta: A superfecta requires you to pick the first four horses to finish a race in the correct order. Naturally this is difficult and you will probably be the only person in your pool to win.
Quinella: Like exactas, quinellas require you to pick the first two finishers in a race. Unlike exactas, the finishers can be in any order. This makes it a better choice for new bettors who are getting used to horse racing pari-mutuel betting.
Daily Double: Pick horses to win in two races and combine them into one big bet. The Daily Double is a great way of covering multiple races at once and the pool size can grow quickly on big race days, such as Kentucky Derby day.
Pick 3: Here, you need to pick three winners across three races and combine them into a Pick 3 bet. The pool can be sizable here, while the chances of rival bettors having the same combo as you is small.
Pick 5: How do you fancy your chances picking five winners across five races? Pick 5 allows you to do just that, although the size of the pool might not be too big.

Pari-Mutuel vs Fixed Odds Betting in Horse Racing

The beauty of pari-mutuel wagering in horse racing is that often the payouts are bigger than the fixed odds. The main difference between pari-mutuel betting and fixed odds in horse racing is who you are betting against.Pari-mutuel wagering in horse racing gives bettors the chance to bet among themselves. All stakes are pooled and whoever wins their bets earns a share of the pool. The only money withdrawn from the pot is the percentage cut for the sportsbook that operates the pari-mutuel market.Fixed odds betting is a direct wager between you and your sportsbook. If you win, the sportsbook carries all the risk and pays up. If you lose, the sportsbook takes your money.There’s no way of confirming which between pari-mutuel betting and fixed odds offer the better payouts. You can strike lucky in a pool bet and be the only player of thousands to land a winner. Likewise, you could back an outside shot at the Kentucky Derby and walk away with a fortune.

Responsible Gambling

We encourage you to gamble responsibly and consider online betting a form of entertainment, not a source of income. Set loss and time limits, and don’t bet more than you’re comfortable losing.

Here are some resources to help you or someone you care about gamble responsibly and get help:

AGA Responsible Gambling Code of Conduct (as supported by the NBA)
Have A Game Plan – Complete Responsible Gambling Resource
Gamble Responsibly America App (downloadable)
KindBridge Behavioral Health

The Sports Geek’s Responsible Gambling Guide

The Bottom Line: Pari-Mutuel Horse Race Betting

Pari-mutuel horse racing betting is a pooled bet type. Players make wagers that are pooled with all other bets on the same event, not placed against the house. Payouts from the pot are determined by how many winning bettors there are. Live pari-mutuel betting allows a bettor to make multiple wagers during races, usually against fewer bettors. Overall, pari-mutuel betting can provide exciting and potentially more lucrative payouts compared to fixed odds betting.

About the Author

Joe Short

Content Writer

Joe is a UK-based journalist working primarily in sports. He splits his time between Belfast and Liverpool, and has a passion for horse racing. He is also an experienced gaming writer and always has one eye on his favorite baseball team, Baltimore Orioles. His dream is to attend the Kentucky Derby one year and pick a winner at Churchill Downs.

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