Sports Betting Strategy

# Sports Betting: Tote Systems And How They Work

The word “Tote” is short for totalisator, which is a betting system that is ubiquitous around the world. Different countries offer varying degrees of the use of the tote, but it is usually present in one form or another. The tote in sports betting is essentially a pool betting system with which the weight of money for a selection in a contest determines the returns for each runner. The majority of tote systems are used for events such as horse racing and for lotteries. Here is a look at the tote system and how it works.

The Breakdown

We can use the UK’s tote system used for horse racing as an example. The current deductions from the tote are 16.5%, and we will use a six-runner race with a pool of 40,000 euros to demonstrate the calculations that produce the dividend. The following figures next to each horse represent the amount that has been staked on each horse in euro form:

Horse A – 8,000
Horse B – 12,000
Horse C – 2,000
Horse D – 6,000
Horse E – 1,000
Horse F – 11,000

If we assume that Horse D will win the race, the payout would look like this in euro form:

40,000 – 16.5%
40,000 – 6,600 = 33,400
33,400/amount staked on Horse D
33,400/6,000 = Dividend

So for every euro that has been staked on Horse D, the total payout will be 5.57.