Parimutuel betting: you bet against other players
In parimutuel betting, every bet goes into a pool. The track takes a share, and the rest is split among the winning tickets.
Reviewed Oct 14, 2026
Answer first
90s| Pool | Typical takeout | Notes |
|---|---|---|
| Win, place, show | 15%–18% | Lowest takeout at most tracks |
| Exacta, quinella | 18%–22% | Two-horse pools |
| Trifecta, superfecta | 20%–25% | Three or four horses |
| Pick 4, pick 5, pick 6 | 14%–25% | Multi-race pools; some have low-takeout promos |
Key numbers
A pool in four numbers
In short
Key takeaways
- Odds on the board are an estimate until the race starts; final odds set the payout.
- The takeout is removed before winners are paid, so every pool has a built-in cost.
- Late money can move a horse’s price sharply in the last minute.
- Breakage rounds payouts down to the nearest 10 or 20 cents per $2.
Sequence
How the tote works out a payout
Step 01
Pool
All win bets go into one pool, for example $100,000.
Step 02
Takeout
The track and state keep a share, for example 16%, leaving $84,000.
Step 03
Winners’ share
Divide the net pool by money bet on the winner, say $21,000: $4 per $1.
Step 04
Price per $2
$4 × $2 = $8.00 returned on a $2 ticket.
Step 05
Breakage
Round down to the nearest 10 or 20 cents.
Pay table
Odds on the board vs. $2 payout
Glance before you bet
| Board odds | $2 win pays |
|---|---|
| 1-5 | $2.40 |
| 1-1 | $4.00 |
| 5-2 | $7.00 |
| 5-1 | $12.00 |
| 10-1 | $22.00 |
| 20-1 | $42.00 |
Approximate, before breakage.
Why prices move
Every new bet changes the pool. Money placed in the final minutes, often from large players, can drop a horse from 6-1 to 4-1 after you bet.
Sports betting is different: a fixed price is locked when you bet. In parimutuel, nothing is locked until the gates open.
Floor rules
Pool terms
Know before you sit
- Takeout
- The share of each pool kept by the track and state.
- Breakage
- Rounding payouts down; the difference also goes to the house.
- Tote board
- The display of odds and pool totals.
- Morning line
- The track handicapper’s guess at final odds.
Place and show pools
Place and show pools are split among more than one horse. In a show pool, the net money is divided between the first three finishers, so the payout per ticket is smaller.
A heavy favorite can create a minus pool. If too much money is on one horse to show, the track may have to pay the legal minimum out of its own share.
Exotic pools like trifectas have higher takeout but can pay large amounts, because fewer tickets hit.
Pay table
Example $2 payouts on one race
Glance before you bet
| Bet | Pays |
|---|---|
| Win | $8.00 |
| Place | $4.60 |
| Show | $3.20 |
| Exacta | $38.40 |
| Trifecta | $214.60 |
Example only. Every race pays differently.
Common mistakes
- Betting too early
- Odds can move a lot before post time. A horse at 6-1 when you bet may pay 4-1.
- Forgetting the takeout
- Exotic pools have higher takeout. A trifecta looks like a big payout, but the house share is larger too.
- Treating the morning line as final
- The morning line is a guess by the track handicapper. Final odds come only from the pool.
- Ignoring pool size
- Small pools move more when a large bet arrives. Big races have more stable prices.
- Overbetting favorites to show
- A heavy favorite to show often returns the legal minimum. The risk and reward are badly balanced.
Why big races pay differently
Big races such as the Kentucky Derby draw pools of many millions of dollars from casual players. Prices on longshots can drift higher because casual money often backs famous names.
Small weekday races have thin pools. One large late bet can move a horse from 8-1 to 3-1 in a single tote update.
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Related pages
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01Pools
What does parimutuel mean?
All bets of one type go into a pool, the house takes a fixed share, and the rest is split among winning tickets.
What is takeout in horse racing?
The share of each pool kept for the track, purses and the state, often 15% to 25%.
Why did my horse pay less than the odds I bet at?
Odds keep moving until the race starts. Your payout uses the final odds, not the price you saw when you bet.
Is parimutuel betting legal in the US?
Pari-mutuel horse betting is legal in many states under state racing laws. Check your state’s rules for online wagering.
02Payouts
How is a $2 win payout worked out?
Take the net pool after takeout, divide by money bet on the winner, and multiply by $2. Then round down for breakage.
Can a payout be less than my stake?
On a heavy favorite, a $2 bet can return as little as $2.10 in many states, the legal minimum.
03More pool questions
Who keeps the takeout?
It is split among the track, horse owners as purse money, and the state as tax. The split is set by state law.
What is a carryover?
When no ticket wins a pick 6 or similar pool, part of it carries to the next day. Carryovers attract big pools.
Is greyhound racing parimutuel?
Yes, where it is still legal. Most US states have ended live greyhound racing, though some race books still take simulcast bets.
Sources
- Equibase — Glossary Not from a registry (Reference source, not an official registry) · accessed Oct 14, 2026Horse racing terms
- Nevada Gaming Control Board · accessed Oct 14, 2026Approved games and gaming revenue reports
- National Council on Problem Gambling — Help and resources Not from a registry (Reference source, not an official registry) · accessed Oct 14, 2026Free, confidential help: call or text 1-800-GAMBLER
- UNLV Center for Gaming Research Not from a registry (Reference source, not an official registry) · accessed Oct 14, 2026Research library on casino games and gambling