Tote (Totalisator) Betting System

What Is Tote (Totalisator) Betting System?
Tote (Totalisator) Betting System

Tote (Totalisator) Betting System

A totalizer is a Sports Betting System in which the sportsbook places the bettors' money in a common Stake. The winnings are distributed proportionally depending on the amount of money in that pool. The winnings depend, therefore, on the number of money users accumulate in their bets. Totalizer Betting, also called Mutual Betting, is usually in the horse betting world. Joseph Oller conceived the betting pool system in the 1860s in France. His concept of "Pari-Mutuel" is still used for horse racing in France today. The commission for the sportsbooks benefit is collected from that betting pool. Then, this accumulated will be distributed according to the number of bettors' bets and the event result.

The Betting System Totalisator In Action

So, for example, let's imagine that in a race with five participants, A, B, C, D, and E. The bookie distributes the bets on the winner as follows:

  • Bets on A: $ 30,000
  • Bets on B: $ 40,000
  • Bets on C: $ 25,000
  • Bets on D: $ 35,000
  • Bets on E: $ 20,000

Suppose the betting house commission is $ 10,000 on the total money wagered. There would be $ 140,000 of betting pool or Totalizer. Thus, if B wins the race, the money to distribute to the winners would be $ 140,000 / $ 40,000 = 3.5 for each $1 bet. If, for example, we had bet $100 on B's win, then we would win $350. The Totalizer system benefits bookies. So, this happens because the odds depend on the bet amount and not only on the result. Also, the more money bettors put on a horse or team, the lower the benefits to the winners, if that horse or team wins.

In totalizer bets or tote bets, we do not know the odds until the stakes are closed. It is interesting to bet on the tote system when your horse is not very popular, but we consider that it has an excellent winning chance. Here, your odds will be high, and the Tote would end up paying us a bigger prize. This is valid for both winner and place bets. If we bet on a favorite and it wins, our prize will be low since there will be many winners. This will be more clear when betting on a place, where the prizes can be pennies for each dollar you invest.

Totalizer Betting is a widespread betting system throughout the world. Different countries exhibit varying degrees of use of the betting pool, but it is present in one form or another. Usually, the states run the Tote-style betting systems and allow governments to benefit from betting revenues. In short, in a tote betting system, bookies redistribute the collected amount among the winners. The betting pool distribution occurs after the bookie has subtracted its winning percentage. Also, the winning bettors' prize depends on the bet amount. Thus, only at the end of the race will you know how high your earnings will be.

Join Sportstrade Mailing List