If people predominantly bet for one side, the odds have to lower so the house still wins in either case. Basically, there has to be enough taken in on all other options to cover the payout of any winning option.
If there’s no selection bias in betting skill level of the players, then the betting odds should roughly reflect the actual probability. But if one side’s bet has no basis in reality, then the odds can get very skewed.
And in those cases, it’s not the oddsmakers that are wrong, it’s the betters. The house always wins.
I don’t think that’s how that works.
If people predominantly bet for one side, the odds have to lower so the house still wins in either case. Basically, there has to be enough taken in on all other options to cover the payout of any winning option.
If there’s no selection bias in betting skill level of the players, then the betting odds should roughly reflect the actual probability. But if one side’s bet has no basis in reality, then the odds can get very skewed.
And in those cases, it’s not the oddsmakers that are wrong, it’s the betters. The house always wins.
Removed by mod
How long have you been trading?