Betting Exchanges vs Bookies
The cluster focuses on comparisons between peer-to-peer betting exchanges like Betfair, where the platform takes a commission regardless of outcomes, and traditional sportsbooks that adjust odds, ban winning bettors, or limit stakes to ensure profitability.
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Not on Betfair, it's an exchange. They make money either way.
People can offer bets, those with differing views can take the bets. You can even make a market with floating odds like BetFair used to.
Things like BetFair let you place bets both sides (unlike some shops like Ladbrokes where you are betting against them). This allows you to track the current betting prices and create situations where no matter the outcome you can make money.There are a few places on the net explaining this in more detail.
Many sportsbooks actually do not run that way. The name "sportsbook" implies that they do, but that is an older style of betting that has fallen out of favor. Modern sports books usually use fixed odds set by an oddsmaker (in modern times, algorithms set by the oddsmaker), but those odds are allowed to float with the probability of the outcome changing. I believe they take supply and demand into account, but you actually are betting against the house. That prevents the kind of trading
Someone should inform the bookies! Then they'll be able to change their odds so that however people bet, they'll end up winning over time.
This betting site has a really stupid betting system. It appears that the amount of money you receive isn't based on a pricing of the bet, as is done on all real prediction markets, but based on a simple payout of all the bets received on the other side of the bet by the end of the bet date. This system has two practical consequences: 1. You can't determine the markets current probability estimates from the current state of the market, as you can with priced markets. 2. You should never bet unti
Bookies don't take stakes from habitual winners. The "market" is rigged.
Probably makes sense for sports betting companies.
This makes no sense at all. You shouldn't be gambling against the platform, you should be gambling against other users. The platform profits equally whether you win or lose, since they take a cut per bet, not per loss
I've worked for an online bookie. I've also worked for an outfit that bets (on horses mainly).The online bookie will indeed ban or limit winning accounts or anyone they suspect of cheating or betting smartly. Anyone betting large amounts dumbly gets taken out to nice dinners etc.The company that bets on horses bets using exchanges, because bookmakers would tend to kick them out. The abstract of this paper is pretty much 101 to those guys who do some advanced stuff I can't ta