Parimutuel Betting in Bookmakers

The term Parimutuel refers to a betting system used in greyhound racing, horse racing, and other competitions. These days, the word is rarely used on its own, having been largely replaced by the term “totalizator.” For many punters, especially those seeking the Guaranteed best odds Bet365, this system offers an alternative way to bet compared to classic fixed-odds markets.

The Origins of the Concept

The word Parimutuel comes from French (pari – “bet,” mutuel – “among all of us”). This system was introduced in 1874 by businessman Joseph Oller, and in some cases, it is even named after him. However, the roots go much deeper, as a similar principle was used in Ancient Rome, where gladiator battles were the main form of competition.

How the Bet Works

Players place wagers of the same type on a given event. All stakes are combined into a prize pool. The organiser deducts a commission and distributes the remaining funds among the winners after the event concludes.

A Simple Calculation Example

Let’s imagine a horse race with 8 runners. Bettors place their stakes on the winner. Before the start, the pool looks like this:

• Horse #1: £10
• Horse #2: £50
• Horse #3: £40
• Other horses: £25 each

The total pool is £225.
Assuming the organiser takes a 10% commission, the remaining prize pool is £202.

If horse #2 wins, the £50 staked on it shares the £202 prize pool. The payout ratio is £202 ÷ £50 = 4.05.
So, a bettor who placed £1 on horse #2 would receive £4.

This is the simplest case. In reality, operators may use more advanced models, sometimes awarding consolation prizes to bettors whose horses finish second or third.

Difference from Classic Sports Betting

The Parimutuel system differs from traditional fixed-odds betting in several ways:

• How the game is structured
• How prizes are calculated
• How widely it is used

In classic betting, the player bets against the bookmaker — if the player wins, the bookmaker loses. In Parimutuel betting, players compete against each other. The organiser only takes a margin and distributes winnings accordingly.

This makes it similar to a stock exchange: the operator acts like a broker, charging only a commission for processing bets.

Another difference is predictability. In fixed-odds betting, the potential winnings are known in advance and stated in the bet slip. In Parimutuel betting, the payout cannot be known beforehand. It depends on:

• the total size of the pool,
• how much was staked on the winner,
• the size of the individual bet,
• the payout rules used.

For instance, if each participant had received £30 in bets, the pool (after commission) would be around £225. But since bettors’ preferences are unpredictable, uncertainty always remains.

If horse #1, which only had £10 staked, were to win, the odds would reach 22.5, and those who bet on it would enjoy a massive payout.

Types of Parimutuel Bets

Operators typically offer a range of Parimutuel betting options, including:

• betting on the winner of the race,
• predicting the finishing order,
• wagering on a specific runner to finish in the top two.

These bets remain especially popular in the United States, France, and the UK, where totalizators are still widely used.

Should You Try It?

The appeal of totalizators lies in the chance to hit a jackpot — sometimes a small stake of just £50 can turn into life-changing winnings.

In the UK, operators often include complex jackpot systems. For example, to win the grand prize, a bettor might need to correctly predict the outcomes of 15 matches. If nobody wins, part of the prize fund rolls over into the next draw.

Of course, predicting 15 matches is extremely difficult and requires thorough analysis. Still, even with a few mistakes, players can remain in the prize pool. This feature sets totalizators apart from regular accumulator bets.