Pari-mutuel betting in horse racing is money pools collected on any kind of wager for the live track. The popular horse race bets include Win, Place and Show positions, exoctic wagers such as Exactas and Trifecta and consecutive bets in multiple races such as the Daily Double and Pick 3.
ScoresandStats.com has all the details in the post, What is Pari-Mutuel Betting in Horse Racing.
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