Pari-Mutuel Wagering






Pari-Mutuel Wagering

Pari-mutuel wagering means, literally, a mutuel wager or "betting among ourselves." It is similar to a stock transaction. When you buy a $2.00 ticket on a horse you are, in effect, buying one share in the horse's performance in the race. The race track merely acts as a broker for the transaction and deducts a commission fixed by the state and shared by the state, the track, and the horsemen. The track's takeout on every dollar remains the same, regardless of whether a favorite or a long shot wins.