Parimutuel is a specific kind of betting ystem in which all of the players wagers are gathered together in a pool, and the juice or “big” is then deducted, and the payout odds are determined by sharing the pool among all the winning wagers from the bet. Sometimes the parimutuel bet is less commonly known as the Tote.
This form of betting differs from the more common fixed-odds betting in that the final payout is only decided once the pool is closed and betting has stopped. On the other hand, fixed-odds betting already has the line set and agreed upon when a player actually places their wager.
Parimutuel betting is usually state-regulated, and offered in places where other gambling is usually illegal. It’s also offered at off-track facilities, where players can place their wagers without actually attending the event in person.