Parimutuel 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 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 winners. This betting method is commonly used in horse racing and other sports events. Unlike traditional betting, where you bet against a bookmaker, in parimutuel betting, you are essentially betting against other participants, making it a collective betting experience.