Parimutuel mechanism

With a pari-mutuel mechanism winners share the total pool, minus fees, according to their individual wagers.

How does it work?

Parimutuel betting, in the technical realm, is a peer-to-peer betting system. Each bet goes into a pool, and pay-outs depend on the total pool size and individual bets. No fixed odds, no house edge – just pure player vs. player action. Payoff odds are calculated by sharing the pool among all winning bets.

Most commonly used in horse racing.

Fixed Odds, on the other hand, involve odds set by the house. Bets are placed against the house, and your winnings are predetermined by these odds. But here's the difference: no player interaction, no dynamic pay-outs.

Parimutuel betting differs from fixed-odds betting in that the final pay-out is not determined until the pool is closed – in fixed odds betting, the pay-out is agreed at the time the bet is sold.

Why parimutuel betting:

🔎 Transparency: You can verify all bets on chain 😄 Decentralization: No centralized house controlling odds 🤝 Trust less: Pay-outs are automated via smart contracts 👥 Community engagement: Competition, interaction and collaboration between players