Pari-mutuel betting is the most common and trusted system for betting on horse racing in the United States. It’s also used in other racing sports, like greyhound racing, in states where it remains legal. Whether you're placing a bet on the Kentucky Derby or backing a fast break from the traps in a greyhound race, pari-mutuel wagering gives every bettor a fair shot at the prize pool.
Unlike fixed-odds betting — where the payout is locked in when the bet is placed — pari-mutuel betting relies on a pool system where all bets of a particular type are grouped together. The winners share the pot after a small percentage is taken by the track or betting platform.
How Pari-Mutuel Betting Works
How Pari-Mutuel Betting Works
Here’s a simple breakdown:
All bets of a specific type (e.g., Win, Exacta) go into a pool.
Once betting closes (post time), the track deducts a percentage (the takeout).
The remaining amount is split among the winning tickets — meaning the final odds are calculated after betting ends.
Pari-mutuel betting is fully legal and regulated in most US states for both horse and greyhound racing, and it powers everything from casual $2 bets to large-stakes wagering.
Why It Matters for Horse Racing Bettors
Why It Matters for Horse Racing Bettors
Odds aren’t fixed: They move based on how others bet. You can get better or worse value than you first expected.
Your competition is other bettors, not a bookmaker.
Big pools can mean big payouts, especially on exotic bets like Trifectas or Pick 5s.
Pari-mutuel betting is legal in most US states and used for both live and simulcast races across the country.
Examples of Pari-Mutuel Bets
Examples of Pari-Mutuel Bets
Win: Pick the winner of the race.
Exacta: Pick the first two finishers in exact order.
Pick 4: Choose winners of four consecutive races.
Each bet type has its own pool and payout, and you can track pool size and changing odds on your betting platform.
✅ Bonus: Greyhound Racing and Pari-Mutuel Wagering
While not as widespread as horse racing, greyhound racing still uses pari-mutuel systems in jurisdictions where it’s legal. The structure is identical — wager pools are created for each bet type, and winners share the pot. If you're betting on greyhounds online, you’ll see the same types of bets and fluctuating odds as with horses.
Frequently Asked Questions
What does pari-mutuel betting mean in horse racing?
What does pari-mutuel betting mean in horse racing?
Pari-mutuel betting means all wagers are pooled together, and winners share the pot after a small deduction. It’s the standard system used in US horse racing and some other sports, such as greyhound racing.
How are payouts calculated in pari-mutuel betting?
How are payouts calculated in pari-mutuel betting?
Payouts are based on the size of the betting pool and how many winning tickets there are. The more bettors on your selection, the lower the return.
Is pari-mutuel betting legal in the US?
Is pari-mutuel betting legal in the US?
Yes, it’s legal in most US states where horse racing is regulated. You can place pari-mutuel bets online, at tracks, or simulcast venues.
Can odds change in pari-mutuel betting?
Can odds change in pari-mutuel betting?
Yes, odds fluctuate up until the start of the race. They are finalised only after all bets are in and the race begins.
Why does the payout change after I place a bet?
Why does the payout change after I place a bet?
Because pari-mutuel betting uses pools, the odds aren’t fixed. More money wagered on a horse lowers the payout, and less increases it.