PARI-MUTUEL WAGERING

How does it work?

Pari-mutuel wagering is a well-established method of wagering.  

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In accordance with the pari-mutuel wagering protocol, a gaming operator will co-mingle bettors’ wagers into a common pool.  As money is bet on the possible outcomes, the odds shift accordingly.  The gaming operator will then take a house commission on these wagers known as the "take-out."  The remaining money in the pool is called the "net pool" and that amount is what will be used to pay the winners.  

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The results of the wagered-upon event are determined and the number of bettors who won their wagers is determined.  The winning bettors each share the winnings pool in proportion to the size of their wager.  

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The gaming operator of a pari-mutuel pool is impartial to the outcome of the event because the take-out is already set, thus making the outcome of the event insignificant to the operator.  Pari-mutuel wagering differs from "fixed odds" betting.  With fixed odds betting, the bettor and gaming operator agree to a price at the time the bet is sold and the gaming operator is at risk.

SYNOPSIS OF THE INVENTION

Patent No.  US 8,430,748 B2
Issued April 30, 2013

The Invention will allow operators to develop an industry exclusive and innovative platform which allows its Rewards customers to exercise self-determination by permitting them to theoretically place their wagers into the pool at a reduced takeout rate in exchange for “Points” (Takeout Points). 

The Invention not only applies to all types of pari-mutuel horse wagering, but to all pari-mutuel products including tournament poker, various slot machines, lotteries, etc.

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Watch the video below to walk through the invention.

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