From Brent Kelley,
Your Guide to Golf.
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Definition: "Ambrose Competition" is another name for a scramble, but one in which a team handicap is used. All players tee off, the best shot is selected and all players hit again from that same spot. The best second shot is selected, and all players hit from that same spot, and so on until the ball is holed.

If the scramble is called an "Ambrose," it means that handicaps are used in play, with a fraction of the total handicaps of the group members serving as one handicap for the group.

For example, if it's a 2-person scramble, the handicaps of the two players are added together and divided by 4. For a 3-person scramble, divide by 6; for a 4-person scramble, divide by 8.

The arithmetic produces one group handicap which is used during play.

Also Known As: Scramble, 2-man scramble, 3-man scramble, 4-man scramble