Pricing /Calculations
The following examples from RCI’s Model Rules demonstrate the difference between Net Pool Pricing and standard gross pool calculation. Note the Show pool’s prices differ slightly between the two calculation methods.
WIN POOL (SINGLE PRICE POOL)
Gross Pool: =Sum of Wagers on all Betting Interests -Refunds
Takeout: =Gross Pool x 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 x Gross Amount Bet on Winner
Total Breakage: =Net Pool -Total Payout
Net Price Calculation (Single Takeout Rate & Single Betting Source)
Gross Pool: =Sum of Wagers on all Betting Interests -Refunds
Takeout: =Gross Pool x Percent Takeout * for Each Source:
Net Pool: =Gross Pool -Takeout
Net Bet on Winner: =Gross Amount Bet on Winner x (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 x (1 -Percent Takeout)
$1 Broken Price: =$1 Unbroken Price Rounded Down to the Break Point
Total Payout: =$1 Broken Price x Gross Amount Bet on Winner
Total Breakage: =Net Pool -Total Payout
Sum of Wagers on All Betting Interests: =$194,230.00
Refunds: =$1,317.00
Gross Pool:
(Sum of Wagers on All Betting Interests-Refunds) =$192,913.00
Percent Takeout: =18%
Takeout: (Gross Pool x Percent Takeout) =$34,724.34
Net Pool: (Gross Pool – Takeout) =$158,188.66
Gross Amount Bet on 1st place finisher: =$23,872.00
Gross Amount Bet on 2nd place finisher: =$12,500.00
Gross Amount Bet on 3rd place finisher: =$4,408.00
Profit:
(Net Pool -Gross Amt Bet on 1st place finisher
-Gross Amount Bet on 2nd place finisher
-Gross Amount Bet on 3rd place finisher) =$117,408.66
The following examples from RCI’s Model Rules demonstrate the difference between Net Pool Pricing and standard gross pool calculation. Note the Show pool’s prices differ slightly between the two calculation methods.
WIN POOL (SINGLE PRICE POOL)
Standard Price Calculation
Gross Pool: =Sum of Wagers on all Betting Interests -Refunds
Takeout: =Gross Pool x 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 x Gross Amount Bet on Winner
Total Breakage: =Net Pool -Total Payout
Net Price Calculation (Single Takeout Rate & Single Betting Source)
Gross Pool: =Sum of Wagers on all Betting Interests -Refunds
Takeout: =Gross Pool x Percent Takeout * for Each Source:
Net Pool: =Gross Pool -Takeout
Net Bet on Winner: =Gross Amount Bet on Winner x (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 x (1 -Percent Takeout)
$1 Broken Price: =$1 Unbroken Price Rounded Down to the Break Point
Total Payout: =$1 Broken Price x Gross Amount Bet on Winner
Total Breakage: =Net Pool -Total Payout
Standard Price Calculation
Sum of Wagers on All Betting Interests: =$194,230.00
Refunds: =$1,317.00
Gross Pool:
(Sum of Wagers on All Betting Interests-Refunds) =$192,913.00
Percent Takeout: =18%
Takeout: (Gross Pool x Percent Takeout) =$34,724.34
Net Pool: (Gross Pool – Takeout) =$158,188.66
Gross Amount Bet on 1st place finisher: =$23,872.00
Gross Amount Bet on 2nd place finisher: =$12,500.00
Gross Amount Bet on 3rd place finisher: =$4,408.00
Profit:
(Net Pool -Gross Amt Bet on 1st place finisher
-Gross Amount Bet on 2nd place finisher
-Gross Amount Bet on 3rd place finisher) =$117,408.66
