betting arbitrages, not the usual questions

[skinnyman9000]

We all know that these exist, and that 90% of the time they work, and well, even if the return is usually only 2-4%. But my question is concerning betting exchanges. No matter what the result of a sporting event, they make money. So this is my question:

Why do they not purposefully creating arbitrages?

I mean, if you bet on something at ladbrokes, then lay at betfair, then betfair earn money no matter the outcome. You win at ladbrokes, so you lose money at betfair, which means someone else wins, which means that make money off their commission. But if you win at betfair they make money from you. So why do they not create them?

Is there a governing body that states they cannot do this?

[ONEDUNME]

How can Betfair "create them"

They are just there as a tool for people to put their prices up.

The only way they could "create" a price is by putting up the money for someone to take the bet. In other words they'd be gambling against whoever took the price that they created and that would be fuckin stupid as they are making money without having to gamble.

And yes, I believe it would be against the rules if they don't hold a licence as a bookmaker but that's not why they don't do it. It's because it's a stupid idea.

[skinnyman9000]

In hindsight that is a very very excellent point, lol!

There were several arbitrage opportunities today between ladbrokes and betfair regarding the F1, unfortunately i was in the middle of something else so i lost out.

I did enjoy watching the 'in play' odds drop for hamilton! 3/1 down to 250/1 in the space of a few seconds