Comments on: BetFair withdraws / improves its brand-new matching-bet logic, which was (kind of) endorsed by the Chairman of the Midas Oracle Advisory Board. http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/ Prediction Markets For All Mon, 01 Dec 2008 21:17:57 +0000 http://wordpress.org/?v=2.6.5 By: BetFair’s brand-new bet matching logic | Midas Oracle .ORG http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/#comment-19155 BetFair’s brand-new bet matching logic | Midas Oracle .ORG Mon, 09 Jun 2008 10:51:02 +0000 http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/#comment-19155 [...] held a forum Q&A session in March in which we announced that we were working on an improved version of bet matching. This would allow us to match bets across selections, and to match those bets at better prices than [...] [...] held a forum Q&A session in March in which we announced that we were working on an improved version of bet matching. This would allow us to match bets across selections, and to match those bets at better prices than [...]

]]> By: David Pennock, a respected expert in prediction markets and market design, discusses some aspects of BetFair’s new bet matching logic. | Midas Oracle .ORG http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/#comment-17654 David Pennock, a respected expert in prediction markets and market design, discusses some aspects of BetFair’s new bet matching logic. | Midas Oracle .ORG Sat, 22 Mar 2008 18:09:52 +0000 http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/#comment-17654 [...] - BetFair withdraws / improves its brand-new matching-bet logic, which was (kind of) endorsed by the C... [...] [...] - BetFair withdraws / improves its brand-new matching-bet logic, which was (kind of) endorsed by the C… [...]

]]> By: BetFair’s new bet matching logic + BetFair Malta’s trading on the multiples | Midas Oracle .ORG http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/#comment-17581 BetFair’s new bet matching logic + BetFair Malta’s trading on the multiples | Midas Oracle .ORG Wed, 19 Mar 2008 21:33:59 +0000 http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/#comment-17581 [...] - BetFair withdraws / improves its brand-new matching-bet logic, which was (kind of) endorsed by the C... [...] [...] - BetFair withdraws / improves its brand-new matching-bet logic, which was (kind of) endorsed by the C… [...]

]]> By: Chris F. Masse http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/#comment-17577 Chris F. Masse Wed, 19 Mar 2008 21:23:13 +0000 http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/#comment-17577 BetFair Q&A: http://www.midasoracle.org/2008/03/19/betfair-q-and-a/ BetFair Q&A:
http://www.midasoracle.org/200.....r-q-and-a/

]]> By: BetFair Malta’s combo market maker (trading algorithm + human market makers) operating on the multiples | Midas Oracle .ORG http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/#comment-17568 BetFair Malta’s combo market maker (trading algorithm + human market makers) operating on the multiples | Midas Oracle .ORG Wed, 19 Mar 2008 17:18:49 +0000 http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/#comment-17568 [...] - BetFair withdraws / improves its brand-new matching-bet logic, which was (kind of) endorsed by the C... [...] [...] - BetFair withdraws / improves its brand-new matching-bet logic, which was (kind of) endorsed by the C… [...]

]]> By: Rab Bibater http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/#comment-17565 Rab Bibater Wed, 19 Mar 2008 16:33:14 +0000 http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/#comment-17565 Yes, I agree - the next leg of the strategy must be to return to an earlier regulatory position, that NOBODY employed by the owner of an exchange, should be allowed to trade on said exchange. That is the only fair position for all. Yes, I agree - the next leg of the strategy must be to return to an earlier regulatory position, that NOBODY employed by the owner of an exchange, should be allowed to trade on said exchange. That is the only fair position for all.

]]> By: Ed Murray http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/#comment-17564 Ed Murray Wed, 19 Mar 2008 14:50:48 +0000 http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/#comment-17564 This move will have happened because the Gambling Commission have asked for explanations as to what on earth is going on, and Betfair have been unable to satisfy them. Its a jumped before they were pushed statement. There were numerous reliable posts from people who had met Betfair staff with a range of quotes including "Betfair think this is fair game" etcetera. There is zero doubt that Betfair were operating against their own terms and conditions in mismatching bets (and profiting from trap bets). Betfair are not the "good guys" for listening to their customers and making the right decision as a result, they will do whatever they can get away with, and have come to the conclusion that they aren't going to get away with this. Regulation does need to be brought in to keep them out of their own markets. This move will have happened because the Gambling Commission have asked for explanations as to what on earth is going on, and Betfair have been unable to satisfy them. Its a jumped before they were pushed statement.

There were numerous reliable posts from people who had met Betfair staff with a range of quotes including "Betfair think this is fair game" etcetera.

There is zero doubt that Betfair were operating against their own terms and conditions in mismatching bets (and profiting from trap bets).

Betfair are not the "good guys" for listening to their customers and making the right decision as a result, they will do whatever they can get away with, and have come to the conclusion that they aren’t going to get away with this.

Regulation does need to be brought in to keep them out of their own markets.

]]> By: Chris F. Masse http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/#comment-17560 Chris F. Masse Wed, 19 Mar 2008 13:21:32 +0000 http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/#comment-17560 Rab Bibater, - Mike Giberson has said that BetFair is going in the right direction. He has looked at the issue carefully. But he has pointed privately some issues that needed to be addressed. And it was said from day one that the rather good opinion of the new BetFair bet matching logic was based on the information available at the time, information which has been updated almost every day from that day. - Thanks for all your comments, and I'll keep the eyes on this issue and publish a post whenever it is necessary... Rab Bibater,
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Mike Giberson has said that BetFair is going in the right direction. He has looked at the issue carefully. But he has pointed privately some issues that needed to be addressed. And it was said from day one that the rather good opinion of the new BetFair bet matching logic was based on the information available at the time, information which has been updated almost every day from that day.
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Thanks for all your comments, and I’ll keep the eyes on this issue and publish a post whenever it is necessary…

]]> By: Dave http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/#comment-17559 Dave Wed, 19 Mar 2008 12:51:32 +0000 http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/#comment-17559 There are other issues still connected to the best matching that we shouldn't overlook which will potentially be the biggest earner for Betfair from the new matching system and be irrefutable proof they are indeed acting as the layer on their markets. Sadly I didn't pick up on it to start with but a forum user called Devils Advocate. In it's simplest form, if we consider a 3 runner market with no offers up, A B & C. If two separate players back teams A & B for £100 at 2 Betfair will now match them up under bet matching also implementing best price matching i'e the back of A can be treated as a lay of B fully matching it. OK fair enough if either A or B go on to win the event but what happens if C now wins ? Both backers have lost and effectively Betfair have acted as the layer of both bets with a no risk situation. Even though this appears theoretical as there will most likely be offers on board for C which would come into play with the best matching this situation does occur on a regular basis on horseracing which just happens to be Betfair’s largest market. There are other issues still connected to the best matching that we shouldn’t overlook which will potentially be the biggest earner for Betfair from the new matching system and be irrefutable proof they are indeed acting as the layer on their markets. Sadly I didn’t pick up on it to start with but a forum user called Devils Advocate.

In it’s simplest form, if we consider a 3 runner market with no offers up, A B & C. If two separate players back teams A & B for £100 at 2 Betfair will now match them up under bet matching also implementing best price matching i’e the back of A can be treated as a lay of B fully matching it. OK fair enough if either A or B go on to win the event but what happens if C now wins ? Both backers have lost and effectively Betfair have acted as the layer of both bets with a no risk situation.

Even though this appears theoretical as there will most likely be offers on board for C which would come into play with the best matching this situation does occur on a regular basis on horseracing which just happens to be Betfair’s largest market.

]]> By: Rab Bibater http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/#comment-17558 Rab Bibater Wed, 19 Mar 2008 12:20:52 +0000 http://www.midasoracle.org/2008/03/19/betfair-bet-matching-logic-4/#comment-17558 Well, firstly, it is self-evident that Betfair are not suspending part of the process just for the good of their health.  Congratulations are therefore due to all of those who stood up and were counted; vis a vis pointing out the inequity of the system.  As to those that rushed to praise the new system; perhaps you need to brush up on your knowledge of how Betfair works. "There’s been <strong>speculation</strong> that <strong><em>the motivation for the change is the short-term additional revenue for Betfair</em></strong> " Indeed, and rightly so ..the goal of any exchange is to increase the number of orders that are put through it, so as to increase revenue. Betfair is not a charitable organisation and does not behave like one; the goal of this process, was to increase revenue. People power has brought about a climbdown...a first amongst many, we hope. Well, firstly, it is self-evident that Betfair are not suspending part of the process just for the good of their health. 

Congratulations are therefore due to all of those who stood up and were counted; vis a vis pointing out the inequity of the system.  As to those that rushed to praise the new system; perhaps you need to brush up on your knowledge of how Betfair works.

"There’s been speculation that the motivation for the change is the short-term additional revenue for Betfair "

Indeed, and rightly so ..the goal of any exchange is to increase the number of orders that are put through it, so as to increase revenue.
Betfair is not a charitable organisation and does not behave like one; the goal of this process, was to increase revenue.

People power has brought about a climbdown…a first amongst many, we hope.

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