Python script implementing the basics of pari mutuel betting

A python script that implements the basics of pari mutuel betting

Python script implementing the basics of pari mutuel betting

Basic concept:

"Pari-mutuel" comes from the French word meaning "mutual bet"
All bets of a certain type are placed together in a pool
After the house takeout, the remaining pool is divided proportionally between the winners of the bets
Most commonly used in horse racing, but also in other sports betting
Key features:

Final payout odds are not determined until betting closes
Odds change dynamically depending on how much is bet on each selection
The house takes no risk as it takes a fixed commission
Payouts are determined by the actions of other players, not the house
How odds work:

Odds are calculated by dividing the total pool by the amount bet on each selection
The more money is bet on an selection, the lower its odds become
Conversely, less popular selections offer higher potential profits