Pari Mutuel Betting is a system where all bets are pooled together, and the odds are determined by the amount of money wagered on each outcome. After the event concludes, the total pool is divided among the winning bettors, minus a small percentage taken by the house for operational costs. This means that the payout can vary based on the total amount bet and the number of winning tickets. In this betting system, participants do not bet against the house but against each other. The more popular a selection is, the lower the payout for that selection, as more money is shared among the winners. This method is commonly used in horse racing and other sports events.