Share 
Parimutuel-powered games (PPGs) have a lot in common with horse betting because they are based on the same wagering structure. However, there are key differences between the two that make them distinct enough that each style of gaming appeals to a different type of bettor.
How parimutuel odds work
PPGs and horse betting rely on the same wagering model: parimutuel betting. In a perimutuel betting system, odds are typically assigned to a horse or greyhound race. The odds available at the time a bet is placed can change, since they are determined by how much action a particular horse receives rather than by fixed house odds.
For example, a bettor could place a wager on a horse at 12-1 odds six hours before a race. If news breaks that an unexpected rain shower will turn the track muddy, and the horse has recently performed well in similar conditions, a surge of bets may follow. As more money flows to that horse, its odds could improve to 6-1.
Because both PPGs and horse racing use the parimutuel betting system, there is no difference between the two in how odds are determined.
Game variety: horse races vs. PPGs
This is where the biggest difference between PPGs and horse betting emerges. Betting on horse races offers one type of event to wager on: horse races. Bettors purchase a ticket, watch the race and, if the wager wins, cash the bet slip.
PPGs take a different approach. Instead of limiting the parimutuel structure to horse racing, they use it as a foundation for a wide range of games. For example, the betting site Horseplay offers casino-style games such as video poker and slots that are built on the parimutuel system.
While the games offered on PPG platforms resemble those found at real-money online casinos, their underlying odds are derived from parimutuel wagering on real horse races.
Rather than restricting players to horse races, PPGs provide familiar game formats that deliver a casino-style experience on the front end, with parimutuel betting driving the results on the back end.
Where PPGs and horse betting are legal
Although parimutuel betting is legal in dozens of states, PPGs are permitted in fewer than 20. The gap largely reflects lawmakers’ reluctance to authorize casino-style online games, whether due to concerns about problem gambling rates or pressure from brick-and-mortar casinos that do not want to lose customers and revenue to online competitors. In some cases, PPGs may also be viewed as exploiting a loophole in state regulations that prohibit online casino gaming.
In addition, only a handful of PPG sites operate in the United States. By contrast, states that allow horse betting often have dozens — if not hundreds — of locations where bettors can place wagers in person and online.
