PARIMUTUEL Meaning and
Definition
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Parimutuel is a betting system commonly used in horse racing, greyhound racing, and other sports where participants place bets on the outcome of a race or event. The term "parimutuel" is derived from the French phrase "pari mutuel," which means mutual betting.
In this betting system, all bets are placed together in a pool, and the odds are determined by the total amount of money wagered on each selection. The pool is divided among the winning bets, with the odds determining the amount received by each winner. This system provides a fair and transparent way of distributing winnings based on the proportion of total bets placed on each outcome.
The parimutuel system is managed by a professional organization, such as a racetrack or a regulatory authority, which sets the rules, calculates the odds, and distributes the winnings. The odds constantly change as more bets are placed, reflecting the current betting patterns and the perceived probabilities of different outcomes.
Parimutuel betting is popular due to its simplicity and the fact that it allows participants to compete against each other rather than against the house. It is considered a form of pooled betting, where the risk and reward are shared among all participants. This system eliminates the need for bookmakers, as the odds are determined by the market and the collective wisdom of the bettors.
Common Misspellings for PARIMUTUEL
Etymology of PARIMUTUEL
The word "parimutuel" has a French origin. It is derived from the French phrase "pari mutuel", which means "mutual bet". The term was first used in relation to a system of betting on horse racing in France in the late 19th century. The concept of parimutuel betting involved pooling all bets placed on a race, deducting operating expenses and taxes, and then distributing the remaining funds among the winners. The term "parimutuel" was eventually adopted into English to describe this particular form of betting.
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