Pari-Mutuel Revenues

AAA

DEFINITION of 'Pari-Mutuel Revenues'

The income a gaming company earns from customers' mutual betting activities, most commonly on horse racing. Churchill Downs is an example of a company that achieves a significant percentage of its earnings from pari-mutuel revenues. In addition to pari-mutuel revenues, gaming companies may also earn income from other types of gambling, like online poker and casino games.

INVESTOPEDIA EXPLAINS 'Pari-Mutuel Revenues'

In pari-mutuel wagering, the top three winning bettors have their bets pooled and share the earnings. Rather than betting against the house, the players bet against each other. Success depends on a combination of luck, experience and the ability to stick to one's overall strategy in the face of changing emotions. The rate of return on winning plays that allows one to earn a profit after factoring in losing plays, transaction costs and breakage (the rounding down of winning bets to the nearest dime or nickel) is called the "take."

RELATED TERMS
  1. Sin Tax

    A state-sponsored tax that is added to products or services that ...
  2. Gambling Income

    Any income that is the result of games of chance or wagers on ...
  3. Gambler's Fallacy

    When an individual erroneously believes that the onset of a certain ...
  4. Lottery

    A game of chance, where winners are typically decided by a drawing. ...
  5. Gambling Loss

    A loss resulting from games of chance or wagers on events with ...
  6. Gamification

    Gamification describes the incentivization of people's engagement ...
Related Articles
  1. Investing Basics

    What Are The Odds Of Scoring A Winning Trade?

    Just because you're on a winning streak doesn't mean you're a skilled trader. Find out why.
  2. Investing Basics

    Are You Investing Or Gambling?

    We look at ways in which gambling creeps into trading, and what may drive an individual to trade - or gamble - in the first place.
  3. Taxes

    Winning The Jackpot: Dream Or Financial Nightmare?

    Don't assume all prizes are free. Many come with enough costs to render them worthless.
  4. Fundamental Analysis

    The Evolution Of The Gaming Market

    The gaming market has a rich history in America, from lotteries in colonial settlements and card games in old west saloons to today's multibillion-dollar casino industry.
  5. Active Trading

    Invest In Hollywood With The Film Futures Market

    It's been 10 years in the making, but you can now bet on which movies will hit it big, or which will flop.
  6. Options & Futures

    Going All-In: Comparing Investing And Gambling

    People often compare stocks to gambling, but how close are they really?
  7. Charts & Patterns

    Why These Could Be 2015's 10 Best Biotech Stocks

    A quick look at a 10 biotech companies that are poised to deliver for shareholders in 2015.
  8. Stock Analysis

    The Key to McDonald's? 70 Million Customers a Day

    Even when it has an underperforming year, McDonald’s is still one of the most profitable companies around.
  9. Charts & Patterns

    Why These Could Be 2015's 10-Best Media Stocks

    A list of top-tier and speculative media stocks for 2015.
  10. Stock Analysis

    Is Intel's Newly Raised Dividend At Risk?

    Intel recently raised its dividend from $0.90 per share on an annualized basis to $0.96 after failing to raise the dividend during 2013 and 2014.

You May Also Like

Hot Definitions
  1. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  2. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  3. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  4. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  5. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  6. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
Trading Center