Parimutuel Meaning: Definition, Examples, and Translations
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parimutuel
[ˌpærɪˈmjuːtəl ]
Definition
gambling system
Parimutuel is a form of wagering in which all bets of a particular type are placed together in a pool. After the house takes its cut, the payoff odds are calculated by sharing the pool among all winning bets. This system is commonly used in horse racing and other types of betting.
Synonyms
mutuel betting, pool betting.
Examples of usage
- She placed a parimutuel bet on the horse race.
- The parimutuel system ensures fair payouts based on the total amount wagered.
- In parimutuel betting, the odds fluctuate based on the amount bet on each participant.
- Many fans enjoy parimutuel betting at the racetrack.
Translations
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Interesting Facts
History
- The system was developed in France in the 19th century to improve the fairness and accessibility of betting on horse races.
- Parimutuel betting gained popularity in the United States in the early 20th century, eventually becoming a staple at racetracks.
Culture
- Many major horse racing events, like the Kentucky Derby, use this betting system, linking it closely to racing culture in the U.S.
- It’s also common in greyhound racing and other sports where competitors race against each other.
Mathematics
- The payouts in this betting system are calculated by dividing the total pool of bets minus a house take among the winning tickets.
- The odds are not fixed and can change as more bets are placed, which makes it unique compared to fixed odds betting.
Legal Aspects
- Parimutuel betting is regulated differently across states and countries, often requiring licensing and oversight.
- Some jurisdictions use this system to help fund state programs through taxes on the betting revenue.
Origin of 'parimutuel'
Main points about word origin
- The word comes from French, where 'pari' means 'bet' and 'mutuel' means 'mutual' or shared.
- It was first used in the gambling context in the late 19th century, particularly in horse racing.
The term 'parimutuel' is derived from the French words 'pari mutuel,' which translates to 'mutual bet.' This betting system originated in France in the late 19th century, particularly around the time of horse racing. The concept was designed to create a more equitable and collective betting environment where bettors would share the risk. The system gained popularity and was later adopted in various parts of the world, especially in the United States, where it became a standard method for wagering on horse races. Over time, it has expanded to include other sports and events, evolving into a prominent feature of modern betting practices.