What is Tote betting and should I use it?

To help answer this one we are going to borrow an explanation from punters.com.au:

“Parimutuel betting systems, also known as “totalisator systems”, involve pooling together all the monies wagered on an event, with all dividends being determined by the weight of money bet on each competitor: so the competitor that has attracted the most money will return the smallest dividend, while the least supported horse will return the highest dividend. 

The price for each competitor will fluctuate in accordance with the monies wagered and the final dividends will only be settled once the betting market has closed, which coincides with the commencement of the event.  This means the odds on any given runner may vary significantly from the time the bet was placed to the final dividend as declared at the close of betting“

We have made that final sentence bold as it is crucial for us. When betting on the tote you do not know your odds until after the race has finished. This makes it impossible to accurately calculate your lay stake. For this reason, you should avoid betting on the tote whenever possible.

Sometimes bookmakers may remove fixed odds from your account, leaving you with no other option than to bet on the tote. In this circumstance you should bet as close to the start time as possible in order to minimise odds fluctuations after the bet has been placed.

We also recommend underlaying by at least 20% if you have to bet on the tote.