What Is The Pari Mutuel Bet

A pari-mutuel bet is a type of betting mainly used in horse racing around the world. With a Pari Mutuel bet, all bets are pooled together for a typical betting type. The payout for the Pari Mutuel bet is determined by the size of the pool that a punter has bet in. The phrase "pari-mutuel" originates from French and translates to mutual betting.
Personally, I have never used Pari Mutuel betting but you never know I might in the future.

How The Pari Mutuel Bet Works?

All the bets for a horse race are pooled. The horse racing course takes a percentage of the total pool as their fee. All Payouts are based on this pool.  After the horse race has finished, the total pool less the course fee is distributed among the winning punters. If more punters bet on a horse and that horse wins, the payout is smaller, and the opposite is true.
For example, if we bet on a horse to win and it wins, we receive a share of the pool based on how much we bet relative to the total amount bet by all punters.

Conclusions

Unlike traditional fixed-odds betting, where the payout is set before the event, in pari-mutuel betting, the payout is only known after the event concludes, depending on how many people bet on the race. If there are a large amount of punters who bet on the same horse, the payout is lower for each winner, but if fewer people bet on the winner, the payout is higher.
This Pari Mutuel betting system is often used in horse races the decimal odds vary depending on the total pool and the amount bet.