totalizator

A totalizator, also called a totalisator, is a system used for pari-mutuel betting in which all bets of a given event are pooled. Bets are placed on possible outcomes, and the pool is then distributed among winning tickets in proportion to each bettor’s stake after deductions for taxes, fees, or the operator’s margin. This eliminates fixed odds and shifts risk from the bookmaker to the betting public.

How it works: A tote board displays the current pool size and the implied odds for each outcome. When the event ends, the pool minus deductions is divided among bets on the winning outcome. If the final pool is P and the amount wagered on the winning outcome is W, the payout per unit is (P minus deductions) divided by W. Payouts can be adjusted as pools close, and some pools may offer multiple dividends for place or show results.

Use and scope: Totalizators are widely used in horse racing, greyhound racing, and other forms of pari-mutuel betting. They can operate as physical tote systems at tracks or as computerized networks (often referred to as “the Tote”) with terminals and online platforms. The system is designed to ensure that payouts reflect the relative size of the pool and that the operator receives a predefined share for operating costs and profit.

History and regulation: The totalizator originated in the 19th century as an alternative to fixed-odds bookmakers. Modern, computerized totalizators expanded in the 20th century, enabling national or regional tote networks. In many jurisdictions, totalizators are subject to gambling regulation, with rules varying by country.