Hacker News Reader

Comment by galleywest200 | Hacker News Reader

Isn't this how gambling works though? You and I place a similar value of chips on a table, then the winner walks it over to a third party (the counter at the casino) to exchange the chips for currency?

View on HN

It's a relatively uncommon structure for gambling, and things that do work that way (like casual sports bets between friends) are often exempt from local gambling laws. Traditional sports betting was done directly between a gambler and their sportsbook of choice at whatever profit-maximizing odds the bookie chose.

In other parts of the world, betting exchanges like BetFair operate this way, but unlike Kalshi, there's no pretence that what's occurring is anything other than gambling, and they are heavily regulated like other sports betting operators.

Which I think is obviously where the US is going to settle in the long term. Just a question of how many people lose their shirts before we get there.

In Australia, where legal online sports betting is everywhere, it's hugely unpopular with everyone except the bookmakers, TV networks (for whom betting ads during sports broadcasts are the one remaining decent revenue stream), a relatively small group of gamblers (many of whom gamble enough for it to pose serious problems for them and their families), and the nominally socially-democratic politicians running the federal government (who were more than happy to ban social media for teens despite the evidence being ambiguous at best, but are amazingly reluctant to tackle this, despite the demonstrated harm).

Put the genie back in the bottle and ban online sports betting. If somebody wants to place a bet on sport, make them physically go to a betting shop or the racetrack.

OK if we put that Genie back in the Bottle can we also go back to a time when Attorneys could not advertise on TV.

How much did that ruling cost?

Ambulance chasers have always been a thing but now it is nationwide syndicate of "Doctor Lawyers".

Total Shitshow for TV viewers...

Talking about "Varginal Mesh" lawsuit in front of children..

Disgusting.

In gambling, you are betting against the sportsbook run by the house, not peers.

Generally, but that isn't a requirement. You're saying poker isn't gambling?

It would be trivial though to do the same thing for sports. Create the market, contracts on either side....

How is Kalshi paid today? They take a cut of each transaction, just like the bookmaker does. Neither cares who wins or loses

Turning it around, the bookmaker really isnt who you bet against, I get that technically you do. but in practice.... You bet against all the other bettors. Bookmakers offset bets with other bookmakers, etc if the balance is off.

In practice bookmakers arent trying to be on one side or the other in a bet. Some do, but they dont last long. They want the odds to make a 50/50 market in bets and they pocket the vig.

Oversimplified but that is the gist of it. Also, my knowledge of bookmaking is from my neighborhood and I assume the legal variety works the same way though.

Reply on news.ycombinator.com