Okla. Admin. Code § 325:65-9-1

Current through Vol. 42, No. 8, January 2, 2025

Section 325:65-9-1 - General-separate pools, standard price or net price calculation required; profit split

(a) All permitted pari-mutuel wagering pools shall be separately and independently calculated and distributed. Takeout shall be deducted from each gross pool as stipulated by law. The remainder of the monies in the pool shall constitute the net pool for distribution as payoff on winning wagers.

(b) For each wagering pool, the amount wagered on the winning betting interest or betting combinations is deducted from the net pool to determine the profit; the profit is then divided by the amount wagered on the winning betting interest or combinations, such quotient being the profit per dollar.

(c) Either the standard or net price calculation procedure may be used to calculate single commission pools, while the net price calculation procedure must be used to calculate multi-commission pools.

(1) The Standard Price Calculation Procedure follows:

Single Price Pool (Win Pool)
gross pool	=	sum of wagers on all betting interests - refunds
takeout	=	gross pool × percent takeout
net pool	=	gross pool - takeout
profit	=	net pool - gross amount bet on winner
profit per dollar	=	profit/gross amount bet on winner
$1 unbroken price	=	profit per dollar + $1
$1 broken price	=	$1 unbroken price rounded down to the break point
total payout	=	$1 broken price × gross amount bet on winner
total breakage	=	net pool - total payout
Profit Split (Place Pool)
Profit is net pool less gross amount bet on all place finishers. Finishers split profit 1/2 and 1/2 (place profit), then divide by gross amount bet on each place finisher for two unique prices.
Profit Split (Show Pool)
Profit is net pool less gross amount bet on all show finishers. Finishers split profit 1/3 and 1/3 and 1/3 (show profit), then divide by gross amount bet on each show finisher for three unique prices.

(2) The Net Price Calculation Procedure follows:

Single Price Pool (Win Pool)
gross pool	=	sum of wagers on all betting interests - refunds
takeout	=	gross pool × percent takeout
For each source:
net pool	=	gross pool - takeout
net bet bet on winner	=	gross amount bet on winner × (1 - percent takeout)
total net pool	=	sum of all sources net pools
total net bet on winner	=	sum of all sources net bet on winner
total profit	=	total net pool - total net bet on winner
profit per dollar	=	total profit/total net bet on winner
$1 unbroken base price	=	profit per dollar + $1
For each source:
$1 unbroken price	=	$1 unbroken base price × (1 - percent takeout)
$1 broken price	=	$1 unbroken price rounded down to the break point
total payout	=	$1 broken price × gross amount bet on winner
total breakage	=	net pool - total payout
Profit Split (Place Pool)
Total profit is the total net pool less the total net amount bet on all place finishers. Finishers split total profit 1/2 and 1/2 (place profit), then divide by total net amount bet on each place finisher for two unique unbroken base prices.
Profit Split (Show Pool)
Total profit is the total net pool less the total net amount bet on all show finishers. Finishers split total profit 1/3 and 1/3 and 1/3 (show profit), then divide by total net amount bet on each show finisher for three unique unbroken base prices.

(d) If a profit split results in only one covered winning betting interest or combinations it shall be calculated the same as a single price pool.

(e) Minimum payoffs and the method used for calculating breakage shall be established b the Commission.

(f) The individual pools outlined in this Chapter may be given alternative names by each organization licensee, provided prior approval is obtained from the Commission.

Okla. Admin. Code § 325:65-9-1

Added at 9 Ok Reg 3201, eff 6-30-92 (emergency); Added at 10 Ok Reg 3569, eff 7-12-93