Parimutuel is a betting system commonly used in horse racing and other sports. In this system, all bets of a particular type are pooled together, and the payout is determined by the total amount wagered. After taking a percentage for the house, the remaining pool is distributed among the winning bettors based on their share of the total bets. Unlike fixed-odds betting, where the odds are set before the event, parimutuel betting means that the odds fluctuate based on the amount of money wagered on each participant. This creates a dynamic betting environment, as the odds can change right up until the race or event begins, making it an exciting option for bettors.