How takeout works
In pari-mutuel wagering all bets of one type go into a pool. The track removes the takeout percentage off the top, and everything left is divided among winning tickets. The house never bets against you; it takes its share before the race is even run.
That structure means takeout works like a transaction cost applied to every dollar cycled through the windows. A 20 percent takeout doesn't mean you lose 20 percent of every bet; it means the whole pool of bettors, collectively, gets back 80 cents of every dollar wagered in that pool.
See also: How pari-mutuel pools set odds
Real rates: a verified example
Rates are set per state and per bet type, and tracks publish them. New York Racing Association tracks (Aqueduct, Belmont, Saratoga) publish this schedule, which is a representative shape: straight bets cheapest, multi-leg exotics most expensive, with occasional promotional exceptions.
Other jurisdictions differ: rates are set state by state and pool by pool, and some tracks discount specific multi-race bets to attract play (Del Mar's official menu, for example, advertises a reduced 14 percent takeout on its early Pick 5). For any specific track, the official wagering menu or state commission filing is the document of record.
| Pool | Takeout |
|---|---|
| Win, place, show | 16% |
| Exacta, quinella, daily double | 18.5% |
| Trifecta, superfecta, Pick 3, Pick 4 | 24% |
| Pick 5, Pick 6 | 15% |
| Pick 6 on carryover days | 24% |
Why the percentage matters
Takeout is the hurdle every betting approach has to clear. A higher rate removes more money before winning tickets are paid, so the same handicapping opinion has less room for error in a high-takeout pool. The exact edge needed to break even depends on the prices you accept and how accurately you estimate each horse's chances; what the rate tells you directly is which pools are expensive to play.
That's also why serious players pay attention to carryovers and takeout promotions: both add value to a pool or lower its cost without changing the game itself.
See also: How carryovers work
Where the money goes
Takeout is split among purses for the horsemen, track operations, state taxes and regulatory fees, and payments to wagering platforms that host the bets. The split varies by state and by agreements between tracks and horsemen's groups.
Common questions
Is takeout the same as the house edge?
It plays the same role, but unlike a casino game the edge isn't against a fixed house line. You're betting against other people, and takeout is the fee on the whole pool. Skill can overcome it in principle, which is not true of a slot machine.
Why are exotic bets taxed harder?
Published schedules simply set higher rates on most exotic pools than on straight wagers; NYRA's, for example, runs from 16 percent on win, place, and show up to 24 percent on trifectas and superfectas. Whatever the reasons behind a given schedule, the practical takeaway is the same: the most exciting bets are usually the most expensive pools to play.
Do online platforms charge different takeout than the track?
No, the takeout is set by the host track's pool and applies wherever the bet is placed. Platforms differ instead through rewards programs that rebate part of your wagering volume.
Further reading