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I doubt it's parimutuel per the strict definition. It's subject to extreme variations due to liquidity and doesn't work well in practice, especially for quant t

I doubt it's parimutuel per the strict definition. It's subject to extreme variations due to liquidity and doesn't work well in practice, especially for quant trading and at the volumes involved here. (If it were, the article certainly did a terrible job of showing it, where's the part where odds moved last minute and massive losses ensued, or where both rivals took the same large position causing massive losses to one another). Anyway, the deeper point still stands, the house takes an ENORMOUS margin, could be in the order of 25% (even nowadays). This changes everything.

topicseed 5y ago
From my understanding[1][2], the Honk Kong Jockey Club does indeed follows a strict parimutuel pool betting system, like the PMU in France (at least years ago). Though you are right, the house have historically taken massive cuts per pool. Eapecially as for years they were the only allowed gambling arenas. [1] https://betandbeat.com/betting/parimutuel/ https://betandbeat.com/betting/parimutuel/ [2] http://special.hkjc.com/racing/info/en/betting/guide_qualifications_pari.asp http://special.hkjc.com/racing/info/en/betting/guide_qualifi...