What Is Pari-mutuel Betting?
What Is Pari-mutuel Betting?Pari-mutuel betting is a form of gambling offered at certain types of sporting events, often races, in which competitors finish in a ranked order. Is Pari-mutuel Betting Legal?Pari-mutuel betting is one of the few forms of organized gambling that is legal in most states. However, there are some states that classify pari-mutuel betting as a form of illegal gambling. Before you place any bets, make sure you know what the law is in your state. Why Is Pari-mutuel Betting Legal When other Forms of Gambling Are Not?Pari-mutuel gambling differs from other common types of gambling in that you gamble against other gamblers rather than against the house. In pari-mutuel betting, all gamblers are on equal footing, there are no "house odds" that give one person or group an advantage over another. This fact distinguishes pari-mutuel betting from casino games and other forms of gambling, and makes it less susceptible to corruption and abuse. What Are Some of the Common Kinds of Pari-mutuel Betting?The most common kinds of pari-mutuel betting are: - Horseracing
- Greyhound racing
- Jai Alai
How Does Pari-mutuel Betting Work?Pari-mutuel betting works by having all the money from bets of a particular kind pooled together. From this pool, taxes and a house ¿take¿ are removed and payoff odds are calculated from what's left. The fewer correctly placed bets in the pool, the greater the payoff. What Kinds of Bets Can I Make?There are several different kinds of bets you can make on a pari-mutuel event. Each different type of bet goes in its own pool. Some of the common types of bets include: - Bet to win - You win if the competitor you bet on comes in first
- Bet to place - You win if the competitor you bet on comes in either first or second
- Bet to show - You win if the competitor you bet on comes in either first, second, or third
- There are also "exotics" which are bets that are more difficult to win, but carry higher payoffs. These include:
- Exacta -You win if you picked the first and second place finishers in order
- Quinella - You win if you picket the first and second place finishers, but they don't have to be in order
- Trifecta - You win if you picked the first, second, and third place finishers in order
Can I Bet on a Race that Is Taking Place in a Different State?Interstate pari-mutuel gambling is regulated by federal law. Most forms of interstate gambling are illegal but the Interstate Horseracing Act of 1978 allows interstate pari-mutuel wagering over the phone, over the internet, or through any other electronic communication as long as pari-mutuels are legal in both states. So, if you are in a state where pari-mutuel betting is legal and you wish to bet on a race being held in a different state that also permits pari-mutuel betting, you can bet on that race without violating federal laws related to interstate gambling. Should I Consult a Lawyer?If you have any questions about pari-mutuel betting you may want to contact a lawyer. An experienced gaming law lawyer will be able to inform you of the applicable laws in your state and advise you on how to best protect your rights. |
