Pool Betting, often referred to as Pari-Mutuel betting, is a type of wagering where all bets of a particular kind are placed together in a “pool.” The return or payout is then calculated by sharing the pool among all winning bets. The house (or organizer) will take a commission from the pool, and the remaining funds are distributed proportionally to the winners. Pool Betting contrasts with fixed-odds betting, where the payout odds are set at the time the bet is placed.
Where is Pool Betting most commonly found?
Pool Betting is most commonly associated with horse racing and greyhound racing. However, it can also be applied to other sports or events, like jai alai or even some lottery-style games.
How are the payouts determined in Pool Betting?
Payouts in Pool Betting are determined by dividing the total amount in the pool (after deducting the organizer’s commission) by the number of winning bets. This means that the payout amount is not known until after the event concludes and all bets are made.
What is the advantage of Pool Betting over fixed-odds betting?
One advantage of Pool Betting is that the house or bookmaker is not financially interested in the event’s outcome. Their profit comes from the commission, regardless of who wins. This contrasts with fixed-odds betting, where bookmakers might adjust odds to manage their potential liabilities.
Can the payout in Pool Betting be very different from fixed-odds betting?
Yes, especially if an unexpected outcome occurs. Since payouts in Pool Betting are determined by the distribution of bets, a less-favored outcome can lead to higher payouts for those who backed it, as fewer people share the pool.
What happens to the pool if there are no winning bets?
In the rare case where there are no winning bets, rules can vary. Some operators might carry the pool over to another event, creating a larger prize pool, similar to a lottery jackpot rollover. Others might have specific rules about redistributing the pool among other bettors.