I am trying to figure this one on my own and having difficulty? If all UK fans bet that UK is going to win, obviously Party Poker had to pay a lot and i suspect they lost their shirt! on MC; I can see, filled up arena could fetch few bucks. I presume there were no match fixing , or something loosey goosey going on? help!
How Did Party Poker made money
- Thread starter naji
- Start date
Well it really all depends on where the betting lines were. What was the spread?
It's a simple mathematical equation. All casinos or professional gambling establishments that allow betting on events use similar equations. You make the pay out for the most popular bet smaller than the pay out for the most unpopular bet. As the bets progress, the odds change to make sure that you have enough money from one side of the bet to payout to the other side of the bet (as well as keep a percentage).
For example, most people would bet on Team Europe if the payout was 1:1 (You bet $1, you win $1 if Team Europe wins). If the payout for Team Europe was 3:1 (You bet $3, you win $1 if Team Europe wins) and the payout for Team USA was 1:1, more people would be willing to bet on Team USA.
Using an equation and factoring which bets have been placed, the payout or spread is modified to keep even money on both sides of the bet so that the losers' money pays the winners after the house's percentage is taken out.
For example, most people would bet on Team Europe if the payout was 1:1 (You bet $1, you win $1 if Team Europe wins). If the payout for Team Europe was 3:1 (You bet $3, you win $1 if Team Europe wins) and the payout for Team USA was 1:1, more people would be willing to bet on Team USA.
Using an equation and factoring which bets have been placed, the payout or spread is modified to keep even money on both sides of the bet so that the losers' money pays the winners after the house's percentage is taken out.
Thanks much Solomon, it makes a lot of sense.
There were other places offering odds, so they could lay off risks on those markets if they were taking in more bets on one side than the other.
haha....yeah the rake on the sites (specifically in certain game types) is unreal lol.
That's the real answer,,,,cause what do,pool players Like to do but gamble, which is party poker is all about :thumbup:
Good general explanation of how a sports book works. I should add that for most real sports books it doesn't always work out that the losing bets cover the winning bets for a single event. That is always the goal, but it requires the line/odds to be pretty close to correct to begin with. If they have to shift the line much, there's a chance of being stuck in the middle and losing almost everything on a particular score. If the odds are way off in one direction, they'd have to overcompensate to get the volume in the other direction and end up with a guaranteed net loss.