Quote:
Originally Posted by lamboguy
is the 12.5% the amount the bet taker pays the track?
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The 12.5% is what the house expects to make on the pool. In parimutuel, they can just take an exact takeout then payout the rest not caring who wins.
In fixed, they have to use "overround" to get a return which means when you tally up the full slate of odds offered, it will come out to higher than 100% win chances. (For 12.5% vig, it's 114.3% overround). This is an improvement over the current parimutuel takeouts if indeed they are honoring it.
Think of football games against the spread. You can take either team at -110 (risk $110 to win $100). *IF* they get one wager on each side, they'll payout $100 to the winner and collect $110 from the loser thus making $10 profit with no risk.
The *IF* part is what's important to them.
