The favorite is currently 1-1 on the tote board but you do not feel that the horse has a legitimate chance to win. Now, let’s assume that you wish to bet against the favorite in a race. If the horse goes off at 3-1, you will receive $3 for every $1 you wagered.
If that horse wins, you will collect the amount of money dictated by the horse’s odds. In parimutual betting you choose a horse that you think will win a race and make a bet. Here’s an example that will clarify how the two types of betting work. With a betting exchange, a player can lay bets or play against a horse. The concept of parimutual wagering revolves around backing a horse to win.
In traditional horse racing bets are made into a parimutual pool where the odds for each bettor are fixed.
