Parimutuel vs Fixed Odds, which one is better

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Parimutuel -vs- Fixed Odds, which one is better?

Posted by Steve Leighton

With the 2012 triple crown in the books, the debate between parimutuel and fixed odds wagering continues: which one is better?

Let’s start with the history of parimutuel betting which comes from the French meaning mutual betting. This type of wager allows all bets of a similar type to be placed together in a pool. After the house take is removed from the pool, the payoff odds are calculated and the pool is shared by the winning bets. So, the final odds in parimutuel betting are not determined until the pool is closed.

Fixed odds betting differs in that the odds are agreed upon at the time the bet is placed. Although, the odds makers may adjust the line as game time approaches, the gambler has the odds “fixed” at the time the bet was placed.

Which is better?

There are several differing opinions on the question and the debate will continue. I will argue that parimutuel betting is a slightly better option due to the fact that the gambler is betting against other gamblers in the pool rather than betting against the house. Since the other patrons with bets placed in the pool have differing levels of expertise, a well-informed gambler can have a slight edge over the majority of the competition.

Sports Line Unlimited by Steve Leighton

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