# eli5: How is money distributed when there are multiple betters?

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On twitch I’ve been watching a lot of BTD6 streams and betting with channel points, and as stupid as that sounds, it’s actually pretty fun. But when I look up my question, I get a lot of different answers. All I want to know is, do people that bet more get more money, if so how much, and how is it calculated who get how much.

In: Economics

yes, people that bet more, get more money back. how much they get back is determined by the odds. if the odds are 1:2, then for every \$1 bet, they would get \$2 back if the bet won. likewise, the opposite bet would have a 2:1 odds. for every \$1 bet, they would get back 50 cents. all the money is pooled together, the house takes a cut, and then the odds are calculated based on the amount of money bet on each side. that’s the simple explanation for a 2 outcome scenario. it’s the same math for multiple outcome scenarios. it gets a lot more complicated if the bet chains together outcomes or is dependent on multiple outcomes happening. there are dedicated people who make the odds in that case.

When a channelpoint bet it set up there are two pools for each side of the bet. When one side wins they get the other sides pool. Each one gets their own bet points back and a part of the other pool in proportion of the amount they bet to their pool.
Example:

You bet 50 on A
Rick bets 150 on A

Carl bets 50 on B
Lisa bets 50 on B

Now there is 200 in Pool A, 50 of these are yours, and 100 in Pool B. A wins, so first you get your 50 back, then your part of pool B. Since you bet 50 of 200 total, you get a quarter of the 100, which is 25.

After the bet your 50 channel points are now 75.

The people who win the bet get more money back if they bet more. There’s also odds, where you can get back more or less money than you actually bet. For example, if someone gives you 2-to-1 odds on a specific bet, that means you’ll win 2 dollars for every dollar that you bet, if you win.

Typically the money comes from the people who lose the bet. However, if the amount of money bet by the losers is lower than the amount of money won by the winners, then the remainder of the money comes from the casino itself. On the other hand, if the amount of money bet by the losers is greater than the amount of money won by the winners, the casino keeps the remainder. Generally casinos try to make the two sides equal and just make money off of transaction fees instead, but sometimes they try to game the odds themselves because they believe that the side with less money will win and they’ll get to keep the difference.