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Horse racing has been around for a very, very long time. It has probably been around for as long as man has ridden horses. But the modern form of horse racing has been around for a much shorter time. This form of horse racing probably began in the 1800s. Professional bookmaking also began around that time in England.
In The Beginning
In the early days of horse racing, bookmaking was done entirely by individual bookmakers. There was absolutely no regulation. As can be predicted, this created a lot of problems. It was because this that M. Pierre Oller invented a machine that could conduct an auction pool based on bets that had been placed. This system was less prone to underhanded manipulations by dishonest bookies. As a result, it quickly gained much favor.
Around the time this machine was invented, the biggest races were being held in Paris. That is the reason the bettors often referred to these races as “mutuels.” The machine thus came to be known as the Pari-mutuel. Pari-mutuel betting is still the most common form of betting in horse racing today. This type of betting can seem very arcane but it is actually very simple in concept.
If you want to bet on a particular race, you first have to pick the horse that you think will win the race. When the race is completed, the winners win a share of the total pot money. However, that pot is not divided in an equal manner. All the winners get back their initial bets and the remainders is pooled and divided up equally in units of 2.
For example, someone who bet $2 will get one unit while someone who bet $30 will get 15 units. In a pari-mutuel betting system, odds are determined by the percentage of the overall pool that was bet on each particular horse. These odds are then used to create the payoffs in case a bettor’s horse wins the race.
Horse racing as a whole has benefited a lot from Oller’s invention. The pari-mutuel betting system is a beautiful thing. It works so well because it is neutral with regards to the outcome of the race. Even the track has no interested in the winner of any particular race. When it comes to money, any bettor would be interested in a fair system that minimizes the risk of cheating. Oller came up with one and it is automated at that!
If you want to end up being profitable at horse racing, you would do well to study this form of betting to see how you can take advantage of it. Read up on the nuances and subtleties of this system so you can exploit certain situations with it. Only with proper knowledge can you come out ahead in any game. Do not be left behind by your fellow bettors. Learn strategies and seek advice. You will win more and in the end, you will enjoy the wonderful sport of horse racing more as well.