• tiramichu
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    2 months ago

    Betting odds are influenced by other factors beyond the underlying probability, including behaviour of betters and where bets are placed.

    Take horse racing. If a horse was given a 40% chance to win but lots of people start piling money on that horse rather than any others, this creates unbalanced risk for the bookmaker as bets on one outcome need to be balanced by bets on another to ensure the bookmaker makes money.

    The bookmaker will respond to this by adjusting the odds of the popular horse upward to a higher probability, e.g. 60% And that can happen purely through market behaviour, even though nothing about the horse or the track or the race itself has changed!

    So it could be that Trump is the genuine statistical favourite. But it could also be that Republicans are just more likely to gamble and place bets on their candidate than Democrats are.

    • AIhasUse@lemmy.world
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      2 months ago

      Then it’s easy free money, go take it from the degenerates. Nearly all sites are offering double your money if she wins. The rates are usually dynamic, so get it while it’s hot, it may not last at such a discount once the clever betters see this steal.

      On lots of these sites, Harris has been paying half of Biden for the last 3 weeks, well before Biden even announced his retirement. Maybe the betters knew something others didn’t, maybe it was just chance…

        • AIhasUse@lemmy.world
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          1 month ago

          There’s some misunderstanding of definitions going on here. A degenerate gambler is someone who repeatedly makes bad bets. According to you, you would be betting against the people making bad bets. This is what nearly all successful business is, betting against people you think you are smarter than. The real issue here is that you don’t actually believe your own comment. That’s fine, I don’t believe it either.