Parimutuel betting

Parimutuel betting is like a special way to bet at the races. When you bet on a horse race, you don't win money from the people you're betting against; you win money from a big pool of money collected from all the people who are betting on the same race. The pool of money is divided up and given to the winners based on how much money they put in and how much everyone else put in. This type of betting is called parimutuel betting because everyone has to put in the same amount, so the money all pools together.