Parimutuel Law and Legal Definition
Parimutuel game is a system of mutual betting. It is a system where all bets of a particular type are pooled together. The winners of the bet divide the amount among them. This type of betting is usually used in racing. For example, in a horse race bet ,if the horse on which the bet is placed comes first, then all the persons who betted for the winning horse divides among themselves the winning amount. Pari- mutual game is also known as number game or tote.
The following are examples of a Federal statute and State Statute (Alaska) defining Pari-Mutuel Game
Pari-Mutuel game is a system of betting where the winners divide the total amount of bet. In this type of gaming system the chances or winning are determined on the basis of the outcome of a future contingent event or events otherwise unrelated to the particular scheme (Code of Ala. § 13A-12-20(7)).
According to 15 USCS § 3002 (13), [Title 15. Commerce and Trade; Chapter 57. Interstate Horseracing] the term parimutuel means “any system whereby wagers with respect to the outcome of a horserace are placed with, or in, a wagering pool conducted by a person licensed or otherwise permitted to do so under State law, and in which the participants are wagering with each other and not against the operator.”