Question by Bob G: Is a bookmaker that offers odds of 1.99 vs 1.99 a good business model?
So i was thinking to create some new type of a betting website where people bet against each other, there are no commissions and the odds are super high like 1.99 vs 1.99. I guess (hope…) advertising here is the key. WHen betfair started it wasn’t anything new since bookmakers made their money in a similar fashion – mathing bets against customers…but…advertising (think of lady gaga if you will :). No seriously, if i call the website like “p2p betting”, “betting house” or any new type of name – then i guess people will see it like something new and might be interested. What do you think?
10x and best of luck in 2011!
zadignose,
Thanks alot for the input Basically what I meant was for instance: A game between Chelsea and Liverpool – the odds are 1.99 for chelsea to win and 1.99 for liverpool to win. As you can see the betting website makes a very tiny “vig” here – but again I am just trying to present it like a new concept…like a “betting house” where people play against each other but they don’t set the odds…the odds are very fairly set by the bookie. I guess the lack of commission will be attractive to arbitrage betters that look for super high odds all the time. And thanks for the horse betting clarification, i know tote is popular in horseracing hence I think apply it every sport.
Best answer:
Answer by zadignose
I have to admit I don’t understand what you mean by “1.99 vs 1.99.” Either this is a very non-standard way of discussing odds, or I’ve missed something somewhere.
You used the term p2p betting. Are you suggesting that you would have players bet against one another, while getting your end from the betting pool? I’m only speculating on what you *might* mean here.
The model of having players bet amongst themselves, with the odds varying based on how much action is placed on each side of a bet, has already been developed. This is paramutuel wagering, and it’s the standard for horse racing wagers in the U.S. and some other parts of the world, whereas Britain traditionally uses bookmakers for horse racing.
Anyway, if you’re planning to develop a paramutuel betting system for other sports, that could be an interesting and unique option. I’m sure some players would gladly participate *IF* you could first find a way to secure their trust. The problem is that customers need to see evidence that the odds are being fairly set. You should probably give full disclosure of all the info that would typically go on a “tote” board. However, I’ve noticed people are often willing to play other games like BINGO online, where there is not full disclosure of the amounts of bets placed, and they have to depend on the honesty/reputation of the site.
Anyway, please clarify your question, and good luck with your designs. Here’s a link to Wiki’s paramutuel page: http://en.wikipedia.org/wiki/Paramutuel
What do you think? Answer below!