A Critical Analysis of New Zealand’s Bookmakers
At the moment, the world’s industry-leading bookmakers include: a) Bet365, b) William Hill, c) Paddy Power, and d) Boylesport.
Most fundamentally, bookmakers allow punters to bet on the potential results of a sporting event. They are responsible for assigning a designated price or a certain set of specific odds to every possible outcome of a scheduled event. Punters, on the other hand, will commonly place calculated bets, and will reap significant monetary gains if they happen to accurately predict the outcome of the event in question.
However, it should be duly noted that bookmakers can- and commonly do, dynamically alter their odds so as to secure an overall net profit for themselves regardless of the actual outcome of an event.
How Is Probability Measured?
In order to be successful, bookmakers are required to accurately and consistently predict the probability of a plethora of different outcomes in a prolific number of events. Traders tend to commonly handle this area of the practice, which they tend to do via the use of statistical analysis and mathematical tools that are made to ensure a sufficient number of variables are taken into account in the consideration of the potential outcome of an event. For example, they may take into account factors such as: a) the potential injuries of either party, b) the predicted weather at the time (if relevant), and c) which side has the so-called ‘home advantage’.
Obviously, however, no trader can predict such outcomes perfectly; most traders tend to fail to consider at least one variable. Even if they don’t, there are ample variables- such as personal injuries or the weather, which are arguably highly unpredictable to some extent and can consequently change extraordinarily dynamically. Consequently, factors which could significantly alter the probability of one side triumphing over the other are commonly not taken into account, and consequently a significant degree of bookmakers tend to adjust their personal odds dynamically if such unpredictable variables prove to have been considered erroneously.
Another fact that should be noted is that different bookmakers tend to offer significantly different odds for the exact same event. This can be explained via two simple reasons: 1) different bookmakers commonly utilize different statistical tools and mathematical calculations to finalize their odds for an event- this is because there is no widely recognised formula for the measurement of such odds and naturally different bookmakers tend to interpret variables differently, and 2) bookmakers often end up competing with one another in an effort to bring in new punters as this is likely to lead to a proliferation in the number of bets that will be placed for an event.
A Final Take: Bookmakers in New Zealand?
In accordance with the Gambling Act 2003, it should be duly noted that New Zealanders are only permitted to engage with the gambling sector if the supplier of such gambling services is not based in New Zealand. Consequently, the citizens of New Zealand have to rely on international bookmakers- such as Bet365, to gamble in a safe and legal manner that doesn’t violate any statutory regulation.
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