The pari-mutuel betting
Pari-mutuel betting is a type of betting system in which all bets made by the players are placed together in a pool and redistributed at the end of the encounter between the winners after deducting the bookmaker's margin.
This margin allows the bookmaker to support their company to pay taxes. This form of betting is the most developed in the horse bets, it is in this form that are made more than 80% of horse bets in the world. This type of wagering is popular around the world, especially in the United States and Japan.
History of the pari-mutuel
Invented in France in 1868 by Joseph Oller, this form of betting quickly became a great success. In France, pari-mutuel betting is fast becoming the only form of betting allowed. The main reason why France has opted for pari-mutuel betting is mostly a question of ethics.
Indeed, in fixed odds bets, the bookmaker plays against the players, he is only interested in the betting side of things. This betting system is more likely to trigger acts of corruption by the bookmakers to help them to earn more money.
In contrast, in pari-mutuel betting, the bookmaker does not play against the players, he just acts as an intermediary and is not as interested in the result of the match.
There is therefore much less risk of corruption appearing in bets using the pari-mutuel system.