What Is ‘Pari Mutuel’ Betting?

Pari-mutuel betting is where all bets of a particular type are placed together in a pool and the house takes a percentage of the pool and distributes the remaining amount to the bettors who have chosen the correct outcome. It is a form of betting where the odds are determined by the amount of money wagered on each outcome, thus the payouts vary depending on the amount of money bet on each outcome. This form of betting is popular in horse racing and greyhound racing, as well as some forms of lotteries.