in pari-mutuel payoffs which are rounded out to a nickel or dime, those pennies that are left over. Breakage is generally split between the track and state and in some cases, breeding or other funds, in varying proportions.
In parimutuel payoffs, which are rounded down to a nickel or dime, the pennies that are left over. Breakage may be used for any of a number of purposes, depending upon a state's rules of racing.
The calculation of the return on a $2.00 wager is made to the nearest .10 in most states. For example, if the actual division of the pool comes out to $8.64 the official payoff is $8.60.