A Guide on How the Pari-Mutuel System Works
Undoubtedly, players all over the world are spoilt for choice with plenty of lottery jackpots to win big on. Having said, each lottery will calculate their jackpots differently for example by using the pari-mutuel system. Now you can learn all about how the pari-mutuel system works with our guide.
Learn how the pari-mutuel system works
Every day, lottery players try their hand at striking it rich on the best on the sites to win the jackpot. What’s more, there are constantly amazing prizes to be won especially on the biggest lotto jackpots from sites such as theLotter.
However, with so many jackpots on offer, you might be wondering what goes into calculating a lottery jackpot. So far, there are several ways to set and calculate a lottery prize such a the pari-mutuel system. At this time, we will focus on how the pari-mutuel system works.
What is the pari-mutuel system
First, let’s look at the basics of how the pari-mutuel system works. Previously in the 1870s, the pari-mutuel system or mutual betting was a common form of gambling, particularly in horseracing. Nowadays, the pari-mutuel system which is an important aspect in calculating lottery jackpot prizes.
In a pari-mutuel lottery system, the money from ticket sales is split among the prize categories. All in all, if the winning combination has more than one ticket holder, then the prize will be equally divided among the winners.
For instance, if ten people win a third price worth $50,000, then each person will win $5,000. This is certainly the complete opposite of a guaranteed prize.
Unlike a lottery offering a guaranteed prize, the amount a player wins depends on how many other winners there are in pari-mutuel lotteries, as there is no guarantee.
Pari-mutuel lotteries
Next on our guide of how the pari-mutuel system works, we will look more closely at some of the pari-mutuel lotteries. Fortunately, all the best pari-mutual lotteries are available on casinos to win the jackpot.
EuroMillions
First, let’s illustrate how the pari-mutuel system works using the EuroMillions lottery which is available on theLotter. Every EuroMillions draw is made up of 50% of the total brought in by ticket sales.
Additionally, there are 13 different winning tiers every draw in this lottery which is calculated using the pari-mutuel system. In this case, there is a fixed percentage of the prize pool assigned to each. After, the amount is equally split between the winning tickets within that tier.
As an illustration, let’s say in EuroMillions draw, €30 million worth of tickets is sold.
- The prize fund in 50% of sales, which makes €15 million.
- Match 2+1 tier receives 14.85% of the prize fund which equals €2.22 million
- If there are 500,000 players who match two main numbers + one Lucky Star, each player wins an equal share of €2.22 million, which is €4.45.
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SuperEnalotto
To demonstrate how the pari-mutuel system works we will use the SuperEnalotto lottery as an example. Let’s say that a SuperEnalotto draw generates €5 million for the prize fund:
- Then the Match 5 prize tier receives 4.2% of the prize fund which results in €210,000.
- After the total is split between all the winners in the Match 5 prize tier.
- If there are 8 Match 5 winners, they will receive €26,250 each.
- If there are 4 Match 5 winners, they will receive €52,500 each.
Conclusion
To summarize, when prizes are awarded on a pari-mutuel basis, their value will depend on how many tickets were sold and on the number of winners on each tier. Furthermore, to better your understanding of the lottery, be sure to read our lottery guide and lottery strategies.
Lastly, be sure to check out the latest review about theLotter, to learn more about the featured lottery site on our guide of how the pari-mutuel system works.
