Ok. I just spent a hour of my life arguing with MikeTizzy about the concept of how many parties are involved in Gambling. 
.
This is why I need your opinions boys. Here was the conversation. Mike believes that in the market of betting there is only a 2 channel (Person/Entity) market. Meaning only 2 people are ever involved in betting. I tried to explain to Mike that betting is a 3 party system.
You have the house.
You have the guy who bet the Favorite
You have the guy who bet the dog.
The Favorite bettor we'll call BigDay (Mainly cause he's banned for 24 hours
). He always lays the favorite.
The house was created simply because they could count on Big Day to lay heavy juice and be a homer. The house takes on the majority of the risk of BigDays homer bets. Unfortunately even Big day will occasionally win. So even with the Juice they normally take on top of his Loses they need to hedge some risk.
The house would never survive with out one more party to take on some of that volatile risk.
That is where the third party or dog bettor comes in. The Dog better we'll call Opie. Only because we know Opie would fade BigDay just to laugh at him later
. Bets against the favorite offsetting the risk for the House.
I thought this was simple common knowledge that even the most basic hamburger understood.
He insisted the house or sportsbooks were not a party involved in the bets. I wasted so much time trying to explain there would never be equal money of fav & dog on any game. I even explained Zero Sum.. Which I thought Asians knew from birth..
Just tell me if I'm wrong here. Deemer your Asian pal, tell me where I went wrong in explaining it?
. This is why I need your opinions boys. Here was the conversation. Mike believes that in the market of betting there is only a 2 channel (Person/Entity) market. Meaning only 2 people are ever involved in betting. I tried to explain to Mike that betting is a 3 party system.
You have the house.
You have the guy who bet the Favorite
You have the guy who bet the dog.
The Favorite bettor we'll call BigDay (Mainly cause he's banned for 24 hours
). He always lays the favorite. The house was created simply because they could count on Big Day to lay heavy juice and be a homer. The house takes on the majority of the risk of BigDays homer bets. Unfortunately even Big day will occasionally win. So even with the Juice they normally take on top of his Loses they need to hedge some risk.
The house would never survive with out one more party to take on some of that volatile risk.
That is where the third party or dog bettor comes in. The Dog better we'll call Opie. Only because we know Opie would fade BigDay just to laugh at him later
. Bets against the favorite offsetting the risk for the House. I thought this was simple common knowledge that even the most basic hamburger understood.
He insisted the house or sportsbooks were not a party involved in the bets
. I wasted so much time trying to explain there would never be equal money of fav & dog on any game. I even explained Zero Sum.. Which I thought Asians knew from birth..Just tell me if I'm wrong here. Deemer your Asian pal, tell me where I went wrong in explaining it?
