What is Paramutuel Betting
As the Greyhound races gained eminence, a practice was seen which could generate easy money to people of all classes without any strain or physical efforts from their side.
Though the risks involved were very high, the practice of betting gained popularity and was found widespread in all the races throughout the world. Though there are various forms of betting involved in the various races, the most famous form is that of Parimutuel betting. The word is derived from French and means betting that is mutual. According to this form of betting, all the odds and bets of a particular category are placed in a pool.
The bookmarker`s fee is taken and the odds of winning a bet is calculated and shared among all the bets in the pool. This system is used in short duration races (Horse, Greyhound racing) where the participants are ranked according to their order of finishing the game.
Considering an example of a pool with 8 possible outcomes summing up to total money of $514, where the winning outcome turns out to be for $55. The prize according to this betting is distributed as follows, from the total pool money, the commission is taken for the gambling company i.e. if the rate is 10% the remaining money is $463 which is divided to the betters of the outcome i.e. $463/$55 ($8) is given for the $1 bet by the betters.
