Can someone explain this to me?

[SentToStud]

Show prices in BEL race 8.

Total pool $400,577
Winner: $367,774 bet to show
2nd: $5,552 bet to show
3rd: $13,682 bet to show

Show payoffs:
$2.10
$3.00
$2.20

How do the 2nd and 3rd finishers pay anything other than $2.10 to show? I must not understand minus pools correctly or something.

Thanks.

[Scav]

It is called Net Pool pricing.....Arlington was one of the first to do it...have no idea how to explain it

[Downthestretch55]

S2S,
I could be wrong but this is what I think it is.
There are three seperate show pools. They aren't co-mingled.
So, the amount in each is divided accordingly.
Should all bets to show be put into the same pool? Yes.
Are they? Obviously not.
Hope that explains. Others might see it differently.
DTS

I thought the same thing. I thought is would be 2.10 for everyone no matter what. All I know is the track loses money on races like that.

Originally Posted by Scav

It is called Net Pool pricing.....Arlington was one of the first to do it...have no idea how to explain it

Net Pool Pricing allows each participating jurisdiction to abide by its mandated takeout rates without affecting the remainder of the network. For example, if a wagering site has a higher takeout than the host track, its payouts are lower. Conversely, a wagering site offering a lower takeout distributes higher payouts than the host track.


Scav...I had never heard of it.. Does this mean that payouts are different at individual tracks.. In the dark, as usual.

Ez

Originally Posted by Downthestretch55

S2S,
I could be wrong but this is what I think it is.
There are three seperate show pools. They aren't co-mingled.
So, the amount in each is divided accordingly.
Should all bets to show be put into the same pool? Yes.
Are they? Obviously not.
Hope that explains. Others might see it differently.
DTS

There is only one show pool..divided three ways after returning the winners actual wagered amount. Right?

Ez

[Scav]

Arlington Park Adopts Net-Pool Pricing
August 5, 2005 --
An Explanation of Net-Pool Pricing:
Historically, prices on pari-mutuel races have been calculated by dividing the GROSS amount of winning bets by the net pool. The net pool is the total amount of wagers reduced by the commission rate, or take-out. This process returns a fair price provided all wagers were made using the same take out. Not all international jurisdictions, however, are allowed by local law to wager into U.S. pools using the local take-out rates, and must use the standard take-out rate for their locality. They have, therefore, been forbidden from wagering into our pools.

To accommodate multiple take-out rates, the Net-Pool pricing model was established in approximately 1995. Under the Net-Pool pricing model, the payouts are calculated by dividing NET amount of winning bets, (rather than the GROSS amount as in Standard Pricing) by the net pool. Each locality then multiplies the payout by the compliment of the commission rate (1- commission rate) to arrive at the local payout.

This process weights each wager according to the local commission rate, as the higher the local commission rate (take-out), the lower the local price. For example, $100 bet at 17% commission is worth $83, and $100 bet at 18% commission is worth $82. The payout at the locality with a 17% commission rate will therefore be slightly higher than the payout at the locality with an 18% commission rate.

Place and Show Pools:
For most pools and payouts, if all localities were using the same take-out rate, the prices would be identical under both the Standard and Net-Pool pricing models. But in any multiple winning runner pool (Place and Show and any other pool in which a dead-heat creates two or more different payouts), the Net-Pool model distributes the same amount of winnings slightly differently. This is a function of allocating the profits to the different winners based on their NET winnings rather than their GROSS winnings. The total amount of monies paid out will not change, but the net effect, in these cases, is that the favorites will pay a little less, while long shots will pay a little more.

$2.10 Payouts and Minus Pools:
Fans will notice that show pools with a heavy favorite that you would expect to return $2.10 for all three runners, now may now pay significantly higher on the two non-favorite horses. This is because that even though the payout on the favorite is reduced to a number even farther below the minimum $2.10 payout, it still must return $2.10. But the other horses are not participating in the minus pool as they were under the Standard Pricing model.

Calculating Projected Payouts using Tote Board Information:
One of the results of the Net Pool pricing model is that one can no longer accurately calculate the payouts using only the information available on the tote board. This is true for all pools, including the Win pool. The reason for this is one needs to know the commission rate of the wagers on each runner in each pool to determine the true NET pool and NET winning wagers. (The tote odds continue to be accurate, as the tote has all of the necessary information to properly calculate and display the current odds / payouts.

For further information, e-mail us at: mailto:mutuels@arlingtonpark.com

[Thunder Gulch]

I learn something new everyday...not that I play a lot of show bets, but still nice to know.