Originally posted on 06/12/2018:

Quote Originally Posted by Optional View Post
They are required to take part of the action. I don't really understand why on an exchange but that is the info we have.

Speaking to AC a few months back when some players accounts were suspended, apparently 9wickets believed some players were manipulating the price on 9wickets early markets to then bet the other side on Betfair full exchange for guaranteed winnings.

At least one of the players with an account suspended was definitely not doing that, and only playing small bets under $100. Which suggested that 9wickets were either paranoid, had no idea what they were talking about, or so sloppy they would inconvenience a very obviously innocent player without checking the account properly first.

To me it felt very much like 9wickets management were betting scared and it set of a red flag for me.


I'd just keep right away from them personally. Can't see it ending well.
An exchange is really no different than a "normal" bookmaker. 95% of the liquidity comes from their own "market makers", those are the bots that post the prices and if you match any of those bets you are actually matching a bet against the exchange, not another client. That's the reason Betfair introduced their Premium Charges. They can't sustain long time winners because those people are actually taking Betfair's money. This is why Betfair has been closing agent accounts (those clients are generally winners) and require affiliates like 9wickets to take part of the action (and risk).

Smarkets works in the same way but are so far content with a far smaller profit margin. As soon as they release their public API, I see them going the same way as Betfair went though.