what is pari-mutuel betting? complete guide
deep dive into pari-mutuel betting—the pool-based system used by horse racing and baozi where all winners split the pot fairly.
pari-mutuel = "mutual betting" in french
unlike bookmakers who set fixed odds, pari-mutuel pools all bets together. winners split the entire pool proportionally. it's the same system used in horse racing worldwide.
how the pool works
total pool: 150 SOL
if NO wins - 50 SOL of NO bettors split 150 SOL pool
the math
payout = (your bet / winning pool) * total pool * 0.975
example: 10 SOL bet on winning side with 50 SOL pool, 150 SOL total: (10/50) * 150 * 0.975 = 29.25 SOL
fair odds
odds reflect what everyone actually believes, not what a bookmaker sets
dynamic payouts
more people betting against you = bigger potential payout
no house edge
you're betting against other users, not us. we only take a small fee.
real-time updates
watch odds change live as new bets come in