How to set up a friendly betting system

15Jun10

As many of you know, in this football season, I’ve thought up a fantastic betting system which allow market forces to determine the returns of winning. For someone who doesn’t gamble, I just thought it was, RATHER BRILLIANT. (oh yes, I do)

Traditionally, betting within a small group of people would usually mean a general sweepstake – $2 will entitle you to pick one team from into a bag full of teams and the owner of the winning team gets the entire pool of money.

This plays entirely on luck.

My game works on a bidding system. To own a team, you have to enter a minimum of $2. So say, if I support Brazil, I’ll put in $2. Given that Brazil is a pretty good team, their chances of winning are higher – so there would be someone else who would outbid me. Say John, who outbids me at $4. This raises the grand pool of money. This goes on for as long as it can – until the “team’s worth” caps.

The benefits of this is that players get to determine the team’s worth i.e. their odds of winning.
Good teams which have better odds will have lower returns – you’ll be earning your own money back
Naturally, the winning bid on lousier teams will be lower, but if you win, your returns will be higher.

BRILLIANT INIT!?

I knew I should have been an actuarian. I’d have made it at least into the little leagues.