Pari-mutuel betting was developed in France at, or about 1870. The concept relates to prize pools being divided and paid to those placing bets in accordance to placement of the competitors. Traditionally prizes are paid on the basis of those who finish in first, second and third place only.
"Pari-Mutuel" is defined as a system of betting on races in which the winning bettors share the total amount bet minus a percentage to the operators.
In New Brunswick, pari-mutuel bets are subject to tax. This tax is imposed under the Pari-Mutuel Tax Act which is administered by the Revenue & Taxation Division of the Department of Finance. The tax is applied to the gross wager at a Harness Racing Track (called the Pari-Mutuel Bet).