ABSTRACT
TheBritish/Irishmethod of calculating place dividends in pari-mutuel pools differs fundamentally from the older method that is used in the United States and elsewhere. The attraction of the newer method to pari-mutuel operators is that the predicted place dividends (the ‘will pays’) on each horse can be accurately displayed to punters before the race. We show that the British/Irish method can result in ‘minus pools’. We describe a simple overall betting strategy, which gives the punters, on aggregate, a substantial positive expected return. In a best case scenario from the punter’s point of view, the pari-mutuel operator can expect to lose over 50 per cent of the total place pool in certain races.
