What is a Betting Pool?
A betting pool (often called "pool betting") is a wagering system where all stakes from participants are combined into a single pool.
Unlike fixed-odds betting where you know your potential return at the time of placing the bet, pool betting prizes are determined by the total amount staked by everyone who enters.
The operator deducts a predetermined percentage (takeout rate) from the total pool to cover costs, tax, and profit before distributing the remaining money to winners.
Betting pools are commonly used in football, horse racing, sports tournaments, and workplace or social prediction competitions, where participants select outcomes such as match winners, final scores, or tournament champions.
How Betting Pools work in the UK
Football pools
The traditional and most popular football pool game is the Treble Chance, now branded as the Classic Pools game.
Players select 10, 11, or 12 football matches from the weekend's fixtures and predict which will finish as a draw where each team scores at least one goal (a "score draw").
A points-based scoring system determines winners, with the player making the most accurate predictions winning the top prize, or sharing it if multiple players achieve the same result.
A special £3,000,000 bonus prize (or share of it) is available for correctly predicting nine score draws (draws of 1-1 or higher) when these are the only score draws on the coupon.
Entries were traditionally submitted through the post or via local agents who collected entries and payments throughout specific areas, earning a commission (typically 12.5%).
Today, the football pools are primarily played online through platforms like The Football Pools, which also offer modern variations such as Premier 10 and Jackpot 12.
Horse race pools (the tote and britbet)
Pool betting on horse racing in the UK is operated primarily through the Tote and Britbet, with Britbet serving 56 racecourses as of 2025.
The totalisator (Tote) system works by pooling all money bet on a race and, after deducting commission, sharing it among winning ticket holders.
For win and each-way bets, customers simply select a horse and stake amount; the eventual payout depends on the final pool size and number of winning tickets.
Popular pool bets include:
- Placepot (requires selecting placed horses in six races)
- Quadpot (four races), and
- Jackpot
Newer bet types have been introduced to expand options:
- Superfecta (first four finishers in correct order)
- Pick 4
- Pick 6 (selecting winners in four or six consecutive races)
Operators deduct a predetermined takeout rate before distributing winnings—typically around 27% for Placepots, 26% for Quadpots, and 25% for newer pool types like Pick 4 and Pick 6
Pools combine money from multiple sources: on-course customers at racecourses, off-course bets from high street bookmakers, and remote bets placed online or via mobile apps, creating larger prize funds.
Common types of Betting Pools in the US
Informal sports pools
The most popular betting pool in the US is the March Madness pool, centred on the NCAA Men's Division I Basketball Championship each spring. An estimated 58 million Americans participate annually, filling out brackets that predict the winner of each tournament game.
College football bowl game pools are another widespread tradition, with millions betting on the winners of all bowl games each season.
The Super Bowl square pool is a fixture of the NFL championship game. Entrants are assigned squares on a 10x10 grid, with rows and columns randomly assigned digits 0-9 corresponding to the final score digits of each team. Prizes are often paid out at the end of each quarter, at halftime, and for the final score.
These informal pools often operate without an official house take. The prize pool is simply divided among winners, making them purely social betting games.
Horse racing parimutuel pools
American horse racing uses the parimutuel system, which is functionally identical to UK pool betting. All wagers on a race are combined into pools, the track takes its commission (takeout), and the remainder is paid to winning ticket holders.
Betting Pools vs fixed-odds betting
Pool betting | Fixed-odds betting | |
|---|---|---|
Who you bet against | Other punters | The bookmaker |
Prize determination | Based on total stakes and number of winners | Based on predetermined odds at time of bet |
Payout potential | Can be substantial when few winners share a large pool | Capped by bookmaker limits; cannot exceed maximum payout rules |
Odds and limits | No minimum odds; no maximum payout caps | Bookmakers set both minimum odds and maximum payout limits |
Entry cost | Traditionally cheap, encouraging multiple entries | Varies widely; |
Conclusion
Betting pools operate on a simple principle: all stakes combine, the operator takes a cut, and winners share what remains. Payouts depend on total entries and how many winners exist. This system creates the possibility of substantial returns when unique selections succeed. Understanding how pools calculate dividends helps bettors approach these markets with realistic expectations.
For more insights on betting pools, visit The Advantage blog.
Frequently asked questions
Do Betting Pools always require equal stakes?
Not always. Informal pools usually require a fixed entry fee, while regulated pari-mutuel pools allow bettors to place different stake amounts on their selections.
Can Betting Pools roll over if nobody wins?
Yes. Some regulated pools roll over the jackpot to the next event if no participant correctly predicts all outcomes, allowing the prize pool to grow significantly.
Is a Betting Pool the same as pari-mutuel betting?
Almost. Parimutuel betting is the regulated, formal version of pool betting used at racetracks. Informal pools like office brackets follow the same dividend logic but without regulated oversight or official takeout rates.
Are office Betting Pools legal in the US?
It depends on the state. Many states allow informal office pools if they are occasional and non-commercial and no organiser takes a commission. Always check state laws before participating.
Are Betting Pool winnings taxable in the UK?
Generally, no. Gambling winnings in the UK, including prizes from football pools and horse racing pool bets, are not subject to income tax or capital gains tax. This is because gambling is not considered a form of employment or trade for tax purposes. However, the operator pays Pool Betting Duty, a 15% levy on net pool betting receipts, to the government before winnings are distributed.