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tote betting explained: the complete guide

"tote" is short for totalizator - the pari-mutuel pool betting system used in horse racing worldwide. here's how it works and why it matters.

what is tote betting?

tote betting is a pool-based wagering system where all bets on a race go into a shared pool. instead of betting against a bookmaker, you're betting against other punters. winners share the pool based on their stake.

fun fact: the first totalizator machine was invented in 1913 by George Julius in New Zealand. it mechanically calculated odds from betting ticket sales!

how the tote pool works

1

bets go into the pool

every bet on the race joins a shared pool. your $10 on horse #3 mixes with everyone else's bets.

2

tote take is deducted

the operator takes a percentage (usually 15-25% for horse racing). baozi takes only 2.5%.

3

winners split the rest

remaining pool is divided among winning tickets proportionally to stake size.

4

dividends are declared

final payouts (called "dividends") are announced. this is the return per unit bet.

common tote bet types

win

pick the horse that finishes first. simplest tote bet.

place

pick a horse to finish 1st, 2nd, or 3rd. lower risk, lower payout.

exacta / quinella

pick 1st and 2nd place finishers. exacta = exact order, quinella = any order.

trifecta

pick 1st, 2nd, and 3rd in exact order. hard to hit, huge payouts.

pick 4 / pick 6

pick winners across multiple races. jackpot-style pools.

superfecta

pick 1st through 4th in exact order. lottery-level difficulty.

tote vs bookmaker odds

FeatureToteBookmaker
odds sourcepool of betsbookmaker's traders
when odds are finalafter race startswhen you bet
typical take15-25%5-15% (hidden)
big longshot payoutsbetterlimited
price certaintyvariableguaranteed

where tote betting is used

🐴 horse racing

the original and most common use. tracks worldwide run tote pools on every race.

🐕 greyhound racing

same system as horse racing. popular in UK, Australia, and Ireland.

🏆 jai alai

the Basque sport uses pari-mutuel betting. popular in Florida and the Philippines.

🔮 prediction markets

modern platforms like baozi use the same pool mechanics for events.

understanding tote dividends

in horse racing, payouts are expressed as "dividends" - the return for a standard unit bet (usually $1 or $2).

example dividend: $5.40

this means a $2 bet returns $5.40 total (your $2 back + $3.40 profit).
equivalent decimal odds: 2.70

tips for tote betting

bet late to see final odds

wait until close to race time to understand where the money is

look for overlay opportunities

when tote odds are better than bookmaker odds, there's value

use exotic bets for big payouts

trifectas and pick-6s can return life-changing sums

watch for carryovers

when no one hits a pick-6, the pool carries over creating huge value

baozi: tote betting for everything

baozi applies the same fair, pool-based system to prediction markets. instead of horse races, you're betting on real-world events - but the mechanics are identical:

transparent pools
crowd-determined odds
low 2.5% fee (vs 15-25%)
on-chain settlement

related guides

try modern tote betting

experience pool betting on prediction markets with lower fees and full transparency.

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