Parimutuel gambling

Parimutuel gambling is a form of legalized gambling frequently offered at certain kinds of sporting events of relatively short duration in which participants finish in a particular order, notably [horse racing]?, [greyhound racing]?, and [jai alai]?. Parimutuel gambling is often also be offered at "off track" facilities, where players may bet on the events without actually being present to observe them in person.

Under parimutuel betting, all bets of a particular type are placed together in a pool, and payoff odds are calculated after first removing a specified amount for taxes and a cut that goes to the facility that sponsors the event (the take). The odds are calculated by sharing the pool among placed bets, and rounding down to a denomination interval (in the US, typically 10 cent intervals are used). The fewer correctly placed bets there are in relation to the entire pool, the greater the payoff. There may be several different types of bets, in which case each type of bet has its own pool. The basic bets involve predicting the order of finish for a single participant, as follows:

• Win - A first place finisher wins the bet
• Place - Either a first or a second placer finish wins the bet
• Show - First, second, or third place finisher wins the bet

Depending on the facility rules, which might vary from event to event, other bets may also be offered which allow the user to pick the finish of more than one participant, or more than one event. These are call exotics, and generally have higher payoffs. However, the facility's take is usually higher in these bets as well:

• Exacta - Picks the first and second place finisher, in order
• Quinella - Picks the first and second place finisher, but the order doesn't matter.
• Trifecta - Picks the first, second, and third place finisher, in order.
• Daily Double - Picks the first place finisher in two straight events.
• Pick 6 - Picks the winner in six consquetive events.

Unlike casino gambling, in parimutuel betting the gambler bets against other gamblers, not the house. It is possible for a very skilled player to win money in the long run at this type of gambling, but overcoming the deficit produced by taxes, the facility's take, and the rounding off of payoffs, is difficult to accomplish and few people are successful at it.