The short answer: with fixed odds, you lock in a price with a bookmaker when you bet, so you know your return unless a scratching triggers a deduction. With the tote, your money joins a pool, commission comes off the top, and the dividend is only final when betting closes. It can pay more or less than the price you saw.
Neither one is better every time. Australian tote is moving to One Pool, a single national pool. Here's how each one works in numbers, so you know what you're signing up for.
General information only, not advice. Chances are you're about to lose. Most punters lose more than they win. 18+ only. Read your operator's rules before you bet.
Key takeaways
Fixed odds: the price is locked when you bet. A scratching deduction is the main thing that can cut it.
Tote: the dividend is the pool, minus commission, divided by the money on the winner. In a small pool, one bet can move it.
Commission is the cost of the tote: 14.5% on win pools, rising to 23% on First Four.
One Pool: Australian tote is moving to One Pool, a single national pool.
Scratchings work differently: fixed odds use deductions, while the tote refunds money on the scratched runner and reshares the pool.
How do fixed odds work?
The bookmaker sets a price and you take it or leave it. Prices move with weight of money, late mail and scratchings. Once your bet is accepted, that price is yours. $10 at $3.00 returns $30, including your stake.
The cost is built into the price. Add up the implied chances of every runner and the total comes to more than 100%. That extra is the bookmaker's margin, or overround. Our guide to horse racing betting strategies works through an example.
Two things punters forget. A bookmaker can limit how much it lets you bet or turn a bet down, while the tote has no maximum (a big bet just moves your own dividend). And getting the best fixed price is your edge, so check the live odds and market movers before you lock anything in.
How does tote betting work?
Every tote bet of the same type on the same race goes into one pool: win bets with win bets, trifectas with trifectas. When betting closes, the operator takes its commission and shares out the rest among the winning bets. The dividend is quoted as the return per $1, including your stake, and it's rounded down to the nearest 5 cents.
How a tote win dividend is worked out:
Start with the total pool: $150,000.
Take off the commission: 14.5%, or $21,750, leaves $128,250.
Divide by the money bet on the winner: $128,250 ÷ $25,650 = $5.00.
Round down to the nearest 5 cents. The dividend is $5.00 for every $1, including your stake.
How much commission does the tote take?
Commission in the national pool, by bet type:
Win: 14.5%
Quaddie: 20.5%
Trifecta: 21.5%
First Four: 23%
Exotic pools cost more, so the bigger the dream payout, the bigger the cut.
How does One Pool change tote dividends?
Australian tote is moving to One Pool, a single national pool. It brings the three main state tote pools together across all three racing codes, so punters see one dividend instead of three. Bigger pools should mean steadier dividends, especially in midweek and greyhound races where some pools used to hold only a few hundred dollars. Our One Pool explainer has the background.
Why can your own bet move the dividend?
In a big Saturday pool, your $100 makes no real difference. In a small one, it does.
Worked example: a $2,000 win pool leaves $1,710 after commission. If $300 is on your horse, it shows $5.70. Add your $100 and the pool becomes $2,100, leaving $1,795.50 after commission, but there's now $400 on your horse. The dividend falls to $4.45 once it's rounded down. Your own bet cost you $1.25 per unit before the race even started.
How do tote place dividends work?
Fields of eight or more pay three places, fields of five to seven pay two, and races with fewer than five starters have no place betting. After commission, the place pool is split into an equal share for each placing. Each share is then divided by the money bet on that placegetter. That's why an outsider running third can pay a bigger place dividend than the favourite that wins. The outsider's share is divided among far fewer bets.
Fixed odds vs tote: what's the difference?
Compare | Fixed odds | Tote | Who sets the price | The bookmaker. Locked when you bet. | The pool. Final when betting closes. |
|---|---|---|
Cost to you | The margin built into the prices | The commission taken from the pool |
Your selection is withdrawn | Refunded after the final field (not on all-in bets) | Refunded |
Another runner is withdrawn | Deductions may apply | No deductions. The pool is reshared. |
Big bets | Can be limited or refused | Accepted, but they move the dividend |
Best for | Knowing your return, and taking a price before it shortens | Exotics, and runners the pool may underrate |
Which pays more, fixed odds or the tote?
You put $20 on a horse at $4.20 fixed. The tote shows about $4.70 at the time. If it wins, here's where the tote could finish:
Tote pays $3.60: $72 back, against $84 fixed. Late money hammered your horse.
Tote pays $4.30: $86 back, against $84 fixed. It firmed a bit, but the tote still edged it.
Tote pays $5.10: $102 back, against $84 fixed. Late money went elsewhere.
The fixed bet pays $84 every time, as long as nothing else is scratched. The tote ranged from $72 to $102. That's the trade: a known return, or a pool that can go either way.
What happens to my bet when a horse is scratched?
Scratchings with fixed odds
Before the final field: early and futures bets are usually all-in. If your horse doesn't run, you lose your stake.
After the final field: if your horse is scratched, you get your stake back.
Another runner scratched: a deduction can come off winning bets placed before the scratching. The shorter the scratched horse's price, the bigger the deduction. Place bets get a smaller deduction than win bets. Each operator publishes its own scale.
Worked example: you have $10 on a horse at $6.00, a $60 return. The $2.00 favourite is scratched after you bet. Depending on the operator, a scratched $2.00 chance means a win deduction of around 40 to 47 cents in the dollar. In Australia the deduction comes off your full return, stake included, so you collect between $31.80 and $36 instead of $60. Check your operator's scale before you bet early.
Scratchings on the tote
Money on the scratched runner is refunded and taken out of the pool.
There are no deductions. The dividend is worked out from what's left, so it can rise or fall depending on where the refunded money goes next.
The number of places paid is set when scratchings close. A late scratching that takes a field from eight to seven still pays three places. If the field drops below five starters, place bets are refunded.
Multi-race bets are different: in quaddies and doubles, a scratched runner is usually replaced by a substitute under the tote rules rather than refunded.
What are tote-style bets with a bookmaker?
Many bookmakers offer bets that settle on the tote dividend without your money ever going into the pool. The bookmaker pays you out based on the declared dividend. With one national dividend instead of three, "best of the totes" products have nothing left to compare, so several are being renamed or replaced, for example with bets that pay the better of the tote dividend or starting price. Check how any tote-style product you use settles.
Starting price (SP) bets are different again. They settle on the official starting price, which comes from the on-course bookmakers' final prices, not from the tote.
Should you bet fixed odds or tote?
You want to know your return: fixed odds.
You think a horse will shorten: take the fixed price before it goes.
You're betting exotics: trifectas, First Fours and quaddies mostly run as tote pools, so the commission is part of the deal.
You're betting a big amount into a small pool: expect to move the dividend yourself.
Our bookmaker reviews compare prices, payout speed and rules, and our TAB review covers Australia's main tote operator.
Responsible gambling
Neither fixed odds nor the tote changes the basic maths: over time, the margin and the commission favour the operator. Bet only what you can afford to lose. Set deposit limits while you're calm, and never chase losses. BetStop lets you self-exclude from every licensed Australian online wagering operator. Our responsible gambling resources have more.
Frequently asked questions
What's the main difference between fixed odds and tote betting?
Fixed odds lock in your price when you bet, subject to scratching deductions. The tote pools everyone's money, takes a commission and shares the rest among the winners, so the final dividend isn't known until betting closes.
How is a tote dividend calculated?
Take the pool, subtract the commission, then divide by the total bet on the winner. A $150,000 win pool at 14.5% commission leaves $128,250. With $25,650 on the winner, that's a $5.00 dividend.
Can the tote pay more than fixed odds?
Yes, when the winner attracts less late money than expected. It can also pay less, and you won't know which until betting closes.
Do deductions apply on the tote?
No. Money on a scratched runner is refunded and the dividend is calculated from the remaining pool. Deductions are a fixed-odds rule.
What is One Pool?
Australian tote is moving to One Pool, a single national pool. It brings the three main state tote pools together, so punters see one dividend instead of three.
Which is better for beginners?
Fixed odds are easier to follow because you know your return when you bet. The tote suits exotics and punters who are comfortable with a dividend that can move.
More answers in our help and FAQ.
Disclaimer: General information only, not financial or betting advice. Examples use illustrative figures. Commission rates, deductions and settlement rules vary by operator and can change. Punt Hub is not a bookmaker. Chances are you're about to lose.