They should just do gambling like predictit. Sell contracts for a Buck a piece and only return .90 (or some other fraction). If big analyst come in and buys one way or another the casino doesn't care.
That's more or less how a sportsbook operates. However if the action doesn't balance out, the book has considerable exposure if the team with more bets on it wins.
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That's more or less how a sportsbook operates. However if the action doesn't balance out, the book has considerable exposure if the team with more bets on it wins.
Beforehand: I don't do sports betting. So I don't know much about the sports betting culture.
But why doesn't the bookmaker simply let anybody "pre-buy" bets (just like you do a bidding on an eBay auction). You will get your bet "approved" as soon as it becomes matched (or at least "near-matched") by the bookmaker. If it cannot be matched, you, of course, get your money/betting token back (just like you don't have to pay anything on an eBay auction if you become outbid).
Perhaps it might even be interesting to offer "flexibility in the ratios" for the bettor, i.e. if you are willing to only get 1.5 times your stake (instead of 2 times), you get "more in front of the queue for finding a match" (because this is better for the bookmaker).
>However if the action doesn't balance out, the book has considerable exposure if the team with more bets on it wins.
isn't that only an issue if the counterparty to each bet is the sportsbook? why can't a sportsbook operate like an exchange, with a bid/ask orderbook and take a % off each trade?
It can and some do. But it's nearly impossible to do combined bets (multiples, accumulator etc) in an exchange, and they are very popular. Also as already mentioned it's leaving money on the table.
It's not either-or, really. If you run an exchange you can bet on it (maybe depending on jurisdiction.) Then you get the commission or the winnings. IIRC matchbook.com do that though I may have been misinformed.