Patent ID: 8430748

Claim:
A method of determining a pari-mutuel pool payout at least partially using at least one processor, said method comprising: accepting multiple wagers from two or more bettors upon a wagering event; defining a gross pari-mutuel wager pool comprising a sum of the amount of all of said multiple wagers; applying a base take-out rate to said total pari-mutuel wager pool to determine a base take-out amount from said gross pari-mutuel pool; determining, using the at least one processor, a net pari-mutuel pool, said net pool comprising said gross pari-mutuel pool less said base take-out amount; determining, using the at least one processor, the one or more winning wagers upon said event; determining, using the at least one processor, a base pari-mutuel win for each winning wager comprising each winning wager's proportion of said net pool to all winning wagers; determining, using the at least one processor, if any winning wagers selected at least one modified take-out rate which is less than said base take-out rate and, if so: applying said modified take-out rate to said gross pari-mutuel pool to determine a modified take-out amount; determining, using the at least one processor, a modified net pool, said modified net pool comprising said gross pari-mutuel pool less said modified take-out amount; and determining, using the at least one processor, a modified pari-mutuel win for each winning wager comprising each winning wager's proportion of said modified net pool to all winning wagers; paying each winning wager placed at said base take-out rate said base pari-mutuel win for said wager; and paying each winning wager placed at said modified take-out rate said modified pari-mutuel win for said wager.