Reverse engineering of a nasty BetFair rumor that made rounds on Midas Oracle and elsewhere

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  1. The Sporting Exchange (BetFair-TradeFair) is a gaming company that operates on many countries.
  2. It would happen, occasionally, that one country&#8217-s laws would allow fixed-odds bookmakers &#8212-but not betting exchanges.
  3. BetFair would still want to operate in that country &#8211-as a bookmaker, not as a prediction exchange&#8211- to have its name out there &#8212-with the long-term goal of reverting it to a full exchange, once the laws will have been modified, later on, in the future.
  4. To do so, in the summer of 2007, BetFair began to hire people to provide prices and manage risk for that Internet sportsbook. That sportsbook has no connection whatsoever with the UK betting exchange.
  5. One un-hired job candidate told everyone who would listen that BetFair was preparing to do some hidden market-making on their betting exchange &#8212-hiring a &#8220-team of traders&#8221-.
  6. BetFair wouldn&#8217-t deny those allegations, out of fear of hinting its competitors.
  7. The sportbook, which was at the origin of that market-making rumor, is BetFair Italy &#8212-which has opened shop recently.