Section 71IAC9-4-1. General

   (a) All permitted pari-mutuel wagering pools shall be separately and independently calculated and distributed. Takeout shall be deducted from each gross pool as stipulated by law. The remainder of the monies in the pool shall constitute the net pool for distribution as payoff on winning wagers.

  (b) For each wagering pool, the amount wagered on the winning betting interest or betting combinations is deducted from the net pool to determine the profit; the profit is then divided by the amount wagered on the winning betting interest or combinations, such quotient being the profit per dollar.

  (c) Either the standard or net price calculation procedure may be used to calculate single commission pools, while the net price calculation procedure must be used to calculate multiple commission pools.

(1) Standard Price Calculation Procedure

(A) SINGLE PRICE POOL (WIN POOL)

gross pool	=	sum of wagers on all betting interest - refunds
takeout	=	gross pool × 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 × gross amount bet on winner
total breakage	=	net pool - total payout

(B) PROFIT SPLIT (PLACE POOL)

Profit is net pool less gross amount bet on all place finishers. Finishers split profit ½ and ½ (place profit), then divide by gross amount bet on each place finisher for two (2) unique prices.

(C) PROFIT SPLIT (SHOW POOL)

Profit is net pool less gross amount bet on all show finishers. Finishers split profit ⅓ and ⅓ and ⅓ (show profit), then divide by gross amount bet on each show finisher for three (3) unique prices.

(2) Net Price Calculation Procedure

(A) SINGLE PRICE POOL (WIN POOL)

gross pool		=	sum of wagers on all betting interests - refunds
takeout		=	gross pool × percent takeout
* for each source:
	net pool	=	gross pool - takeout
	net bet on winner	=	gross amount bet on winner × (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 × (1 - percent takeout)
$1 broken price		=	$1 unbroken price rounded down to the break point
total payout		=	$1 broken price × gross amount bet on winner
total breakage		=	net pool - total payout

(B) PROFIT SPLIT (PLACE POOL)

Total profit is the total net pool less the total net amount bet on all place finishers. Finishers split total profit ½ and ½ (place profit), then divide by total net amount bet on each place finisher for two (2) unique unbroken base prices.

(C) PROFIT SPLIT (SHOW POOL)

Total profit is the total net pool less the total net amount bet on all show finishers. Finishers split total profit ⅓ and ⅓ and ⅓ (show profit), then divide by total net amount bet on each show finisher for three (3) unique unbroken base prices.

  (d) If a profit split results in only one (1) covered winning betting interest or combinations it shall be calculated the same as a single price pool.

  (e) Minimum payoffs and the method used for calculating breakage shall be established by the commission.

  (f) The individual pools outlined in these rules may be given alternative names by each association, provided prior approval is obtained from the commission. (Indiana Horse Racing Commission; 71 IAC 9-4-1; emergency rule filed Feb 10, 1994, 9:20 a.m.: 17 IR 1184; readopted filed Oct 30, 2001, 11:50 a.m.: 25 IR 899; readopted filed Mar 23, 2007, 11:31 a.m.: 20070404-IR-071070030RFA; readopted filed Nov 26, 2013, 11:25 a.m.: 20131225-IR-071130345RFA)