Awesome marketing...

[Iron]

Sounds like an essay question!

They provide entertainment, generate tax revenue and keep people employed (although, if exchanges didn't exist, people would probably spend the disposable income they put into the exchanges on other products and services that do the same).

They also act as a regressive wealth redistribution mechanism, with the lion's share of the profits probably going to wealthy traders and bettors (and if the clients of your typical bookmaking establishment are anything to go by, it will primarily be people on low to average incomes who are at the bottom of the ecosystem). As richer people have a lower propensity to spend, that may mean more money being sat in people's bank accounts, rather than stimulating the economy.

Jeff

What value do betting exchanges provide for society?

[Euler]

A wonderfully negative assessment.

Here is the reality of exchanges. Before exchanges any money bet with a bookie would be lost 100% to a bookie, nothing was shared with people with winning bets.

The exchanges business model was to share winnings with exchange users. So for the first time in history it was possible to actually win money on sports markets.

Because the over round is so small, often 100%, less money is lost on sports markets than ever before and any residue left over is shared with the winners. People who are less price sensitive or want a recreational bet can still use the exchange but part of that bet will probably end up in the hands of a smarter individual. However, overall, the market is super efficient and the most effective way to bet without losing much money.

[Iron]

A wonderfully negative assessment.

This is like a conversation between an enthusiastic born-again Christian preacher and a cynical atheist scientist (with various members of your congregation shouting 'Hallelujah!' from time to time and pointing out the folly of my position).

Before exchanges any money bet with a bookie would be lost 100% to a bookie

Any money lost would go to the bookie's shareholders, rather than to winning punters. The question, though, is about how society benefits from exchanges, and surely from a societal perspective it doesn't matter which group of people profits from bets.

You still have a group of people who make rational choices profiting from a group of people who make irrational choices.

overall, the market is super efficient and the most effective way to bet without losing much money.

I agree. I suppose that might have a positive social impact if it means that people lose less money from gambling than they might otherwise have done. However, I suspect that most mug punters will continue betting until they run out of money, whether they are betting on Betfair or with their local bookmaker.

Jeff

[steven1976]

A wonderfully negative assessment.

This is like a conversation between an enthusiastic born-again Christian preacher and a cynical atheist scientist (with various members of your congregation shouting 'Hallelujah!' from time to time and pointing out the folly of my position).

To say Jeff is a negative person is wrong. The boy oozes confidence. I see Jeff as a PR man in the future.

[steven1976]

I messed up the quote there by the way. Was meant to be quoting jeff

[Iron]

Thanks Steven

In some respects, I am very confident - not many people would dare to challenge possibly the world's top exchange trader in his own forum - but I can also be very lacking in confidence in some situations. I am a mass of contradictions.

Jeff

To say Jeff is a negative person is wrong. The boy oozes confidence. I see Jeff as a PR man in the future.

[LeTiss]

Anybody who attempts to shag his landlady via a dating website is OK with me!

Only joking Jeff - I can't resist bringing that up from time to time

[steven1976]

That's the super confident side

[Iron]

Just to clarify, I didn't attempt to get off with her. When I realised I'd landed on her Plenty of Fish page, I swiftly deleted my account, hoping that she wouldn't see that I'd viewed her profile!

She is an attractive woman and very intelligent, but she clearly disliked me and if I'm honest I was slightly afraid of her, so a shag was never on the cards!

I remember meeting my next landlady for the first time. She had the lights down low during the meeting, and I thought she was possibly coming on to me. I hope she didn't notice my, erm, arousal during the exchange! Nothing ever came of it though - she had a bf, and I don't like to mix business with pleasure. There was definitely some mutual attraction there though...

Jeff

Anybody who attempts to shag his landlady via a dating website is OK with me!

[LeTiss]

This is why I hope you keep plugging away, Jeff

Any guy who has a visible erection when meeting his new landlady, is a guy who deserves success!

[BabyArber]

oh dear, I had such noble intentions moving this thread towards the well being of society, and yet... suddenly we ended up in a different place!