Parimutuel Powered Slot Games: A Legal Alternative to Online Casinos and Sweeps Sites
Parimutuel powered games (PPG), also called ADW (advance deposit wagering) machines and formerly called horse racing slots, look a lot like regular online slot machines that you would find at a real-money online casino or a sweepstakes casino. They have bright screens, spinning reels, and big win animations. Under the surface, though, they are very different from traditional slots. Instead of using a random number generator to create each result, these games are based on the outcomes of real horse races.
You will find these slot-style racing games online at sites like Horseplay Casino (formerly b spot) and GiddyUp Casino (launching soon!) They are available in many states. They are especially popular in states like California, where parimutuel horse race betting is legal, but both real-money online casinos and sweepstakes casinos are not allowed.
This guide explains what parimutuel powered games are, how they work, how payouts are decided, where they are legal, how they connect to the broader horse racing industry. We will also discuss how PPG are different from Historical Horse Racing (HHR) machines and also how these games are different than the online slot machines you will find at online casinos and sweeps sites.
What are parimutuel powered games?
Parimutuel powered games link real-money horse racing bets to online games in a way that feels quite a bit like slots. However, traditional online slots determine results based on Random Number Generators (RNGs).
With parimutuel games, even though the results are displayed on what looks like a slot machine, spinner, or arcade game (simply because that is an easy mechanic for most players to understand), the amount you win or lose is completely tied to a horse race happening at the time. The important part is still the underlying horse race result and parimutuel betting pool. The slot-like game is just revealing the results, not controlling them in any way.
As a result, the law treats them as a form of horse race wagering, not as a slot machine.
What does parimutuel betting mean?
“Parimutuel” (sometimes written pari-mutuel) is the way most horse race betting works in the U.S. Instead of you betting against the house, you’re betting into a shared pool with everyone else.
Here’s the basic idea:
- Everyone who makes the same type of bet is grouped into the same pool (for example, a “win” pool on Horse #4).
- The track (and the state) take a cut of that pool first (this is called the takeout).
- Whatever is left gets divided among the tickets that won.
That’s why parimutuel payouts can feel a little weird if you’re used to casino games. There isn’t a fixed payout table like you’d see on a slot machine, and there isn’t a set “house edge” displayed in the same way. Your payout depends on how much money went into the pool and how many people were right, not on a preset multiplier.
It also explains two other common parimutuel quirks:
- Odds change up until the race starts. If a lot of money comes in late on one horse, the payout for that horse drops because more winners are now splitting the pool.
- You don’t know the exact payout at the moment you bet. You know the type of wager you’re making, but the final payout is determined when the pool closes and the results are official.
In other words: parimutuel betting is a pool-based system where players collectively fund the payouts, and winners share the remaining pool after fees are taken out.
What is advance deposit wagering (ADW)?
Advance deposit wagering (ADW) is simply a way to place parimutuel horse racing bets remotely using an account you fund in advance.
With ADW, you
- Create an account with a licensed wagering provider,
- Deposit money into that account (your “advance deposit”),
- Use those funds to place horse race bets online, in an app, or by phone.
So, ADW isn’t a type of bet by itself. It’s the account and payment method that allows you to participate in parimutuel wagering without being physically at the racetrack or an off-track betting (OTB) location.
How parimutuel powered games work
Even though they look simple, racing slots have a lot happening behind the scenes.
When you interact with a parimutuel powered game, the site is using an ADW-style wagering system to place real-money wagers into a parimutuel pool tied to live horse racing outcomes. The slot-style reels or animations are basically the “video game layer” on top of the same core concept: money goes into a pool, a result is determined by a real race, and payouts come from that pool (minus takeout), not from a random number generator.
Here are the specifics about how this all works:
Fund your account and get tickets
Once you have picked a platform and created an account, you need to fund your account. As of now, PPG platforms do not accept cryptocurrency, following state horse racing laws. However, you can use all kinds of fiat methods to fund your account, including online banking, debit cards, and ewallets (the exact types available depend on the state and the platform you are using).
With most PPG platforms, you don’t directly wager money. Instead, you purchase one or more tickets (or some other form of platform-specific currency), and those tickets place wagers into a series of live racing pools.
The race database
Each PPG system connects to a big library of horse races across the globe. When you play, the system randomly selects a race, according to rules set by the manufacturer and approved by regulators.
Handicapping vs auto-pick
The system will give you some information about the horse race. Some players use the race data to pick their own horses. Others just press an auto-pick button and let the machine choose. From a long-term math point of view, the return to player of the game does not meaningfully change based on whether you handicap or let the system pick. The pool structure and house take drive the long-run results. But some people like to pick themselves to give the sense of more control over the outcome.
Manufacturers and systems
A few specialized companies build and operate horse racing slots. Different states may use different providers, but the overall idea is the same: a regulated system that connects pari-mutuel racing logic to a slot-style display.
How PPG are different from Historical Horse Racing (HHR) machines
Historical Horse Racing slots are physical electronic gambling machines (not online) that let you bet on the outcome of past horse races, not live races. The races are stored in a large computer database. When you press “spin” or place a wager, the system randomly selects one of those historical races and uses its real finish order to decide whether you win. Horse names and track details are usually hidden until after you bet, so players cannot recognize famous old races and gain an edge.
You usually find these usually find horse racing slots at racetracks, off-track betting parlors, and special HHR gaming venues in states that allow them.
In different places you might hear these called things like historical horse racing machines, “historical racing” or “instant racing,” racing slots, horse racing slots, or ADW machines.
In sum, the two key differences between between parimutuel powered games and historical horse racing machines are the following:
1. PPG takes place online. HHR machines are physical machines you need to visit.
2. PPG is based on current live races. HHR machines are based on races that already occurred.
Parimutuel powered racing slots vs traditional slot machines
To many players, slot-like games based on horse racing feel like regular slots. You insert money, choose your bet, and press a button. The big difference is how the outcome is decided and how the law treats each type of game. Here is a quick breakdown of the differences:
| Feature | Parimutuel Powered Games | Traditional slot machines |
|---|---|---|
| Outcome source | Result of a real horse race happening somewhere in the world. | Random number generator (RNG) mapping to virtual reels and symbols. |
| Legal basis | Regulated as pari-mutuel racing products, often under racing commissions. | Treated as casino or lottery-style gaming, under gaming or lottery regulators. |
| Payout structure | Payouts come from shared betting pools after a cut from those taking the wagers; amounts can vary. | Payouts follow a fixed paytable; odds are built into the machine’s design. |
| Whom You Are Betting Against | Other bettors | The house |
| Player choices | You can pick horses or use auto-pick; limited handicapping is possible. | You choose bet size and maybe number of lines; no handicapping of events. |
| Where you find them | Online platforms | Casinos, VLT locations, and regulated online casinos where slots are legal. |
From a player’s point of view, both games can look and feel similar. You still press a button and hope for a big hit. But in parimutuel powered games or other slots tied to horse racing, the graphics sit on top of a racing result. The graphics are simply revealing the results of a real horse race. In traditional slots, on the other hand, the graphics are tied straight to an RNG. This difference matters a lot to lawmakers and regulators. In many states, racetracks can offer parimutuel products like racing slots but cannot offer regular slots at all.
Payouts, odds, and randomness on parimutuel powered games and other horse racing slots
Players often ask whether PPG and other horse racing slots are really random and whether they are fair. The answer is that yes, they are. Here’s why:
On a parimutuel powered game, the randomness is mainly in which race is selected when you place a bet. The system uses an approved process to pick a race at random. The race result itself is not random at all. It is a real horse racing finish, and that order never changes. The platform simply uses that finish to determine which bets win and lose.
When you place a wager, your money goes into one or more pari-mutuel pools. These might be separate pools for different types of bets inside the game, similar to win, exacta, or trifecta pools at the track. A portion of each pool is withheld as takeout to cover the operator, the track, and regulatory fees. The rest is divided among the winning tickets, so the size of payouts can change based on how many players bet on each outcome.
Just like slots, parimutuel games are built to return a certain percentage of wagered money over the long run. Independent testing labs and racing or gaming regulators check that the games follow the approved math and meet standards for fairness, security, and auditing. This does not mean a machine is due to pay after a cold streak. Each bet is still a separate event, and losing runs and sudden big wins are both possible.
Modern advanced deposit wagering platforms must meet strict standards. Regulators and testing bodies look at how races are chosen, how pools are managed, and how software works. The goal is to make sure the games run as approved and that neither players nor operators can secretly change the odds. However, like any legal gambling product, the house has an edge, and over time that edge generates revenue for tracks and operators. Players should treat parimutuel games as paid entertainment, not as a plan to make money.
Where are parimutuel games legal?
Laws around racing slots, both parimutuel powered games and historical horse racing machines move quickly. New bills, court cases, and attorney general opinions can change things in a hurry. This section gives a snapshot of the situation right now. However, it is not legal advice, and readers should always check local laws and official regulators for the latest information.
States with parimutuel powered games (PPG)
PPG are currently available in the following states:
- Alabama
- California
- Colorado
- Delaware
- Florida
- Kansas
- Montana
- North Dakota
- New Hampshire
- New Mexico
- New York
- Oklahoma
- Oregon
- Rhode Island
- South Dakota
- Vermont
- Wisconsin
- Wyoming
Many players are especially excited to see some version of New York online casinos, Montana online casinos, and California online casinos. Those states do not have any regulated real-money online casinos, and recent laws have also removed sweepstakes casinos as well. So horse racing slots give millions of US citizens a way to enjoy online gambling and potentially win some cash prizes.
States with historical horse racing machines
There are seven states where HHR machines are currently authorized in some form:
- Alabama offers HHR machines at former greyhound tracks.
- Kansas has legalized HHR at a redeveloped facility near Wichita.
- Kentucky is a major HHR hub, with multiple large venues and strong links between HHR revenue and racing purses.
- Louisiana approved HHR but has faced court cases that challenged the law.
- New Hampshire allows HHR at charitable gaming facilities.
- Virginia legalized HHR to support the reopening of Colonial Downs and now has several dedicated venues.
- Wyoming allows historical racing devices at numerous simulcast betting locations.
Obviously, there is some overlap between the two lists. However, putting them together yields 21 states that can enjoy some form of racing slots.
Shifting landscape
Because these games sit at the edge of racing and casino law, the status in any state can change with new laws, court cases, or attorney general opinions. Before you travel somewhere just to play a horse racing slot-like game, it is smart to check the latest information from local regulators or from the platform’s official website.
Parimutuel powered games or traditional horse race betting apps: Which is best for me?
If you love horse racing, you may be wondering if parimutuel powered games are a good alternative to traditional horse race betting apps. The short answer is no. They are fundamentally different products, even though they are both rooted in the results of horse races.
Again, PPGs don’t get too far into the weeds on horse race handicapping. You have some control, but you aren’t studying all the details of the race. Since the results are revealed through graphics that look like slots, spinners, scratchers or arcade games, these platforms are built more for casino game enthusiasts. Since parimutuel powered games are tied to horse racing, they are licensed, regulated options for people who want to enjoy real-money online gaming.
Traditional ADW sites, on the other hand, are pure racing platforms. You choose the tracks, handicap races yourself, and build wagers manually. You will find live odds, pool totals, betting slips, and racing data. You won’t see a ticket “reveal” format. Instead, you will watch find live broadcasts of the races themselves. These platforms are built for the traditional horse race betting experience, just without you having to be at the track.
So, if you are more of a casino-style game enthusiast, choose parimutuel powered games. If you are more of a horse racing enthusiast or even a sports betting enthusiast, choose a horse race betting app.
Our editor’s choice for best horse race betting app is FanDuel Racing, due to its wide variety of features that cater to both novice and experienced bettors alike. It is available in AZ, AR, CO, DE, FL, ID, IL, IN, IA, KY, LA, MD, MA, MI, MN, MT, NH, NM, NY, ND, OH, OR, PA, RI, SD, VA, WA, WV, WY.
Up to $500 Back if Your First Bet Doesn't Win
Get Boosted Odds & the Best Promotions
Easy Deposits, Fast Withdrawals
To Claim: Click CLAIM OFFER
The history of horse racing slots
Historical horse racing and other racing slots grew out of a problem: many racetracks were losing money and falling behind casinos, lotteries, and other forms of gambling. Racing slots were designed as a way to give tracks a more modern gaming product while still fitting under the legal framework for pari-mutuel racing.
Early “instant racing” machines appeared around 2000 at Oaklawn Park in Arkansas. Over time, they evolved into today’s HHR cabinets, which look and feel more like standard slots but still rely on past races and parimutuel pools.
And of course, as igaming technology has grown, racing slots have moved online to parimutuel powered games through sites like Horseplay Casino and Giddyup Casino.
Benefits
Both parimutuel powered games and historical horse racing machines offer several major benefits:
- They help support the horse racing industry, an industry that is important for many local economies but that has been struggling in recent years.
- They give people a legal, regulated form of gambling.
- As licensed providers, operators pay taxes, a boost for state revenues.
In states like Kentucky, for example, HHR revenue has become a major part of the racing economy. It has helped fund large purses, support track renovations, and keep live racing viable even as the sport has declined elsewhere.
Parimutuel powered game providers offer additional benefits due to their online nature. They offer safe alternatives to any bad actors, such as offshore casinos (which are notorious for data breaches and for shady business practices). PPG providers are regulated and licensed. They are audited regularly to ensure compliance. So for people who want to gamble online, especially in states where sweeps sites and traditional online casinos are unavailable, parimutuel powered games are a great option.
Controversy
Despite these benefits, horse racing slot-like products (much like most everything in our society) are not without controversy.
Supporters point to the benefits we mentioned above: horse racing slots keep jobs at tracks, help breeders and trainers, help keep racing alive in smaller markets, and provide a safe option for people who want to gamble online.
Critics argue that the machines are “slots in disguise” and that they bring casino-style gambling into communities without the same level of voter approval or debate.
Court fights in places like Louisiana, Idaho, and Texas show how controversial these machines can be.
How to play parimutuel powered games step by step
Different platforms have slight variances in how to play parimutuel powered games. However, the basic steps are similar almost everywhere:
First, load up a virtual game platform. Then pick how much you want to wager. Many machines let you adjust the bet per play, just like a slot.
Next, look at the race information if you want to. The screen may show a small grid of numbers for each entry in the upcoming “mystery” race. You might see odds, basic rankings, or a simple performance figure, but not full names or track details. You can ignore this if you do not want to handicap.
Then, pick your horses or use auto-pick. You can select the horses you think will do best, or use an auto-pick feature that chooses for you. Over the long term, the house edge will be similar either way, so this choice is mainly about preference and fun, not about beating the system.
Once your bet is locked in, the machine reveals a short replay of the actual race or shows a stylized animation that matches the real finish. Some platforms show more of the race, others show only the end or a more abstract graphic.
NOTE: Your bet is placed as soon as the ticket is purchased, but if there are no races available at that very moment, you might have to wait until a race is live (and ended) to receive the green light to play.
Finally, see if you won. If your chosen entries finished in the right spots for the bet type you made, the machine pays from the pari-mutuel pool. The result is usually shown both as a race outcome and as slot-style lines or symbols so you can see quickly whether you hit.
FAQ about parimutuel powered games and horse racing slots
No. Horse-themed online slots are standard RNG casino games that just use horse art and sound effects. Racing slot machines base results on real horse races and use pari-mutuel pools like a racetrack.
The selection of which race you get is random within the system’s rules, but the race result is fixed because it is a live sporting event. Regulators and independent labs test PPG systems to make sure they follow the approved math and rules. The games still have a built-in house edge, so the operator expects to make money over time.
You can study the small bit of information on the screen and choose the horses you like. That can change your experience on a given play, but over the long term, the takeout and parimutuel structure control the returns. There is no handicapping method that turns horse racing slots into a long-term winning plan for the average player.
Parimutuel powered games, at sites like Horseplay Casino or Giddyup Casino, are available in Alabama, California, Colorado, Delaware, Florida, Kansas, Montana, North Dakota, New Hampshire, New Mexico, New York, Oklahoma, Oregon, Rhode Island, South Dakota, Vermont, Wisconsin, and Wyoming.
HHR machines are available in Alabama, Kansas, Kentucky, Louisiana, New Hampshire, Virginia, and Wyoming, mostly at racetracks, off-track betting venues, or dedicated HHR gaming halls.
No. HHR machines are land-based, so you will not find official historical horse racing slots online. If you see sites offering this, they are offshore sites and should not be trusted.
However, parimutuel powered games are available online at sites like Horseplay or GiddyUp Casino. These sites use live race outcomes to power their casino-style games, not historical races, but the concept is the same. PPG are a safe, regulated online horse racing product and are especially a great alternative in states where online casinos and sweepstakes casinos are not allowed, such as California and New York.
In many places, yes. States such as Kentucky, Virginia, and Wyoming have seen HHR and PPG revenue flow into purses, track upgrades, and related programs. Industry reports often credit these games with helping tracks stay open and competitive with casinos and online betting.
Parimutuel powered games just give you a bit of data about the horse race in question and you only have a little bit of control over the exact bets you are making. Then, the results are revealed through a game that looks like a slot machine or spinner or arcade game.
If you use a traditional online horse race betting platform, such as FanDuel Racing, you control every part of choosing and placing your bets. The results are not revealed through a slot-like game; you actually watch the full race and see if you won. In that sense, it feels much more like online sports betting than an online casino game.
In essence, if you are a big horse racing fan, you should choose traditional horse race betting. If you are just looking for a fun form of online gambling, parimutuel powered games are better for you.
Not at all. If you want, you can let the platform auto-pick for you. If so, parimutuel powered games become dependent on chance and are a form of online gambling entertainment.
Indeed, even if you are very knowledgeable about horse racing, it won’t help you that much when you play parimutuel powered games. The odds don’t change that much. So if that’s the case, you are better off using an online horse race betting platform, such as FanDuel Racing, instead.
An important note on responsible gambling
Whether you are playing horse racing slots, traditional slots, or betting on live races, it is important to gamble responsibly. Set a budget before you play, never wager money you cannot afford to lose, and take breaks if you feel stressed or upset. If gambling stops feeling fun and starts to feel like a problem, seek help from a trusted counselor or a national gambling helpline in your area. See our guide to responsible gambling to get all the information and resources you need.
