Quote:
Originally Posted by photon
How would one go about setting up a for fun betting pool? Say you had a family reunion with some competitive games, and you wanted to set up betting so people could bet on outcomes.
Where I get stuck is don't real betting places also take into account how many people will bet either side into their odds calculations to make sure they get enough money to cover all the payouts?
If I had something that was 50/50, and there was 10 people betting $10 on each side, the winners would get $20 each (their original $10 and the won $10). Because the bets were equal it pays for itself.
But what if everyone bet one side? The payout should be $20 each but there's only enough money in the pot for $10 each.
The only way I could think to set it up to account for this is not having any odds at all. Then everyone who wins gets their stake back and the stakes of the losers gets divided evenly among the winners. I mean there'll be intuitive odds (that team has Cheryl, they'll obviously lose), but it seems like it wouldn't be much fun.
Am I missing something?
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You are forgetting the vig.