My 2.2 cents (GST Inc.)

It is a real prick when your opinions are taxed. Australia least powerful political blog. (Plus any other crap I want to talk about.)

Tuesday, November 01, 2005

Betfair

On today of all days, I feel the time is write to discuss Betfair. It looks like this UK company together with Kerry Packer are about to get a licence from the Tasmanian Government. Not that I feel that Packer needs more money, I can't see anything actually wrong with this. The people kick up the stink are ones who look like they are going to lose their monopoly.
The nature of Betfair is that it is a Betting Exchange which means that you can write your own odds, but still have to get someone else to agree to take the bet. Basically it works a little like the stock exchange.
One of the often quoted aspects of this is that allows you to bet against a Horse or team to win. This is true, but the rate of return is far less. Take for example, a horse that has odds of 10 to 1. This means if you are willing to take a bet against the horse, you are risking $10 to earn $1. For corruption to take place, it would require a larger amount of money than what is going to be gained. Plus punters are normally smart enough to see a massive amount of money has been place for a horse to loss.

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