Alternative betting exchanges, Smarkets, Matchbook etc. : When is a betting exchange no longer a betting exchange?

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Euler
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Fri Jun 15, 2018 11:25 am

Betdaq MD Shane McLaughlin outlines the challenges facing peer-to-peer betting platforms in 2018

https://egr.global/intel/opinion/when-i ... -exchange/

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LeTiss
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Fri Jun 15, 2018 11:44 am

Other ‘betting exchanges’ are now making as much as two thirds of revenue from proprietary trading on their own exchange and one recently admitted publicly that they are involved in up to 40% of bets on their exchange. The conflict of interest is obvious but does it actually matter? Well, yes, if winning customers are not welcome because they are playing against the house.

I particularly like this paragraph

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megarain
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Fri Jun 15, 2018 11:54 am

V interesting article, and v well thought out.

I would agree with the 25% number (PC most would find acceptable) - whilst 40-60% probably isnt, and people will find alternatives, either
by going elsewhere, or using friends accounts.

Would love to know his thoughts on a US exchange etc.

Long Term
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Sun Jun 17, 2018 9:27 pm

As a model it is flawed if they need to trade their own exchange to increase profits and liquidity.

This has echos of the poker companies especially the AbsoluteBet super user accounts.

The PR of exchanges being in their own markets would be a disaster similar to the FOBT fallout, with in time legislation being introduced.

Finally its disappointing to see all peer to peer exchanges moving away from their original MO.

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northbound
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Sun Jun 17, 2018 11:14 pm

Long Term wrote:
Sun Jun 17, 2018 9:27 pm
Finally its disappointing to see all peer to peer exchanges moving away from their original MO.
Yep, it’s always sad to see great products being messed up by bean counters :roll:

One of my fantasies is to be the sole owner of an exchange, with attached singles-only “bookmaker” which in fact matches bets on the exchange, then run simple ads like “Bet Victor stops accepting your bets if you win. We would never do that”.

stueytrader
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Joined: Tue Dec 15, 2015 6:47 pm

Sat Jul 07, 2018 9:58 am

Interesting article - I'm pretty certain Betdaq (with some good recent moves in the industry) are starting to challenge Betfair in certain ways (not least general liquidity of course).

Just as a related point, are Betdaq basically owned by Ladbrokes I believe?

Long Term
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Wed Jan 02, 2019 5:40 pm

Do we think proprietary trading/traders have an edge?

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ShaunWhite
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Wed Jan 02, 2019 5:57 pm

Long Term wrote:
Wed Jan 02, 2019 5:40 pm
Do we think proprietary trading/traders have an edge?
In what way?
My understanding of a prop trader is that they're just trading from a nostro account, and in that regard, that's what we're all doing here. It's my firm's money on the line, not that of 'depositors'. If you mean trading at a trading company, then that depends on the quality of the analysis and resourses, but as scale affords you better in both regards, then it would make sense that they had an advantage over a regular Joe.

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