The term pari-mutuel betting is used to describe a gambling system where all wagers of a specific type are pooled together, with the payout odds determined by the distribution of money within that pool. It is traditionally applied to thoroughbred horse racing, greyhound racing, and Jai alai (ask anyone in Florida about Jai alai). The concept has gained even more traction of late, now that it will be applied to the tracks of NASCAR Series events. NASCAR announced the arrival of parimutuel wagering to stock car racing in states in which regulators allow it, back in February of 2025. Other sports could theoretically follow suit if NASCAR’s test with the system proves attractive to the betting public and lucrative for sportsbooks.
While pari-mutuel betting receives limited attention in the realm of problem gambling research and investigation, there is a case to be made that it presents a unique risk to those who are vulnerable to problematic gambling behavior. Below is a summary of what may make it distinctly so, concluding with a call to action to get help if you or a loved one struggles with this, or any other form, of gambling.
Overview of How Pari Mutuel Betting May be Particularly Risky for Those Vulnerable to Problematic Gambling Behavior
I. Pari Mutuel Races Are Innately for Thrill Seekers
Thrill-seeking (or sensation-seeking) is a personality trait characterized by a desire for fresh and intense experiences that is accompanied by a willingness to take risks. While some thrill-seeking activities can be innocuous or even advantageous, in other cases the trait can be associated with harmful behavioral addictions such as problem gambling. Understanding this, those with thrill seeking personalities and other predispositions to problematic gambling behavior (see Section VI below) must be more mindful about their relationship with pari-mutuel betting. The action-packed fast-paced excitement of a horse race, dog race, auto race or other related type of competition, enhanced by the potential for a payout, checks all of the boxes for a thrill-seeker, which may later manifest as habitual or compulsive participation.
II. Dynamic Betting Odds Attractive to Risk Takers
In contrast to most sports bets, pari-mutuel betting odds fluctuate in real-time based on how every other bettor for the race is wagering. This is appealing to thrill seekers (see Section I) and risk takers who get a dopamine rush by watching the odds change, which ramps up in the lead-up to the event. This also adds a layer of strategic thinking that we address later in Section IV.
III. Social Facilitation Linked to Problem Gambling
Research confirms that people tend to gamble more when they are surrounded by other people engaged in gambling. This is due to social facilitation, which is a psychological phenomenon where a person’s performance on a task intensifies when they are in the presence of others compared to when they are alone. As per the introduction, pari-mutuel betting involves a group of gamblers who bet into a common pool. A collective excitement of a respective race and anticipation of the results are shared among all participants. This fosters a sense of community. While this is attractive to all involved, the presence of others along with more intense peer influence can encourage or “facilitate” risky gambling behaviors.
IV. Cognitive Distortion Regarding Strategy
A phenomenon related to problem gambling that is very evident in pari-mutuel betting, is the cognitive distortion relating to the false perception that there is a winning strategy and skillset involved in race betting. Given that racing event predictions involve factors like horse or dog form/health, a jockey or greyhound trainer’s recent performances, track conditions, and weather, individuals who are drawn to skill-based gambling experience a false sense of control, which increases vulnerability to problematic gambling behavior. This cognitive distortion is elevated by the presence of dynamic betting odds associated with pari-mutuel betting. Bettors attempt to employ strategy that accounts for odds movement that occurs as other gamblers put money on one pony, pup, or Ford Mustang. In smaller pari-mutuel event circles an influential gambler may even attempt to sway fellow bettors in one direction, while they bet in the opposite so as to secure longer odds with a greater payout. Click here to view more on cognitive distortions of gambling.
V. Potential for High Payouts Attracts Problematic Gambling Behavior
The possibility of scoring a significant payout, particularly on less popular choices or in large pools with few winners, is a major draw for many pari-mutuel bettors. The potential to outsmart the rest of the gambling field (see Section IV) and identify undervalued horses, dogs, or drivers can be very rewarding. This manner of thinking is common among those who have a complicated relationship with sports betting. In an article titled Debt from Gambling : An American Mental Health Epidemic we identified that more than 50% are willing to wager tens of thousands of dollars when the odds can deliver a payout that is 100 times greater.
VI. And on Top of it All…
An inability to control one’s behavior with pari-mutuel wagering, like with casino gaming and sports betting (et cetera) is indicative of problem gambling. And as a form of problem gambling, it can be labelled comorbid with the following mental health concerns:
| Attention Deficit Hyperactivity Disorder (ADHD) | Anger and Irritability |
| Anxiety | Bipolar Disorder |
| Depression | Obsessive Compulsive Disorder (OCD) |
| Post Traumatic Stress Disorder (PTSD) | Schizophrenia |
| Suicidal Ideation | Substance Abuse |
Considering all other sections above, imagine the added potential for complications for anyone who struggles with cooccurring mental health issues while engaging in pari-mutuel gambling activities. It’s a dangerous cocktail.
Do you struggle with problematic pari-mutuel betting behavior? Kindbridge Behavioral Health is America’s leading counseling service for problem gambling and cooccurring mental health issues. Begin your journey to recovery with a FREE assessment to address your relationship with gambling. During your FREE assessment you are encouraged to ask any questions and express concerns that you may have before committing to any treatment plan. You have nothing to lose and everything to gain.
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