Re: Equal footing (745 Views)
Posted by:
BitPlayer (IP Logged)
Date: July 13, 2018 09:13AM
The "equal footing" argument is usually made as an argument against rebates. Rebates allow the computer groups (and others) to make a profit even when their bets (before rebate) are just break-even or slightly unprofitable. Because of their access to the tote, their ability to use pool information to calculate expected values and optimal bet amounts almost instantly, and their ability to place large wagers in batches at the last minute, they can drive the odds down to a level that is profitable for them but not for those with no or smaller rebates.
Of course, the argument depends on the assumption that their algorithms enable the computer groups to very accurately identify the probability of each possible outcome of races. That assumption is not unreasonable if one also assumes that, if the algorithms were not accurate, the computer groups would rapidly go out of business.