Profile of An Internet Bookie

prostoalex writes "The New York Times Magazine has a story about one of Internet's most lucrative businesses - online bookmaking. Writer William Berlind travels to San Jose, Costa Rica, where the offices of such online powerhouses as BetOnSports and SkyBook are located. Quite an interesting story about numerous Americans traveling to Costa Rica with the grand business plan of online gambling, US government trying to shut down the offshore gambling operations, and how the bookies operate."

Comments

There was a show about college bookie

[Anonymous Coward]

It was a couple years ago, I think. Anyway, they were showing these college students at places like Ohio State and wherever making $10k a week. I always thought it would be awesome to be a bookie, but you gotta have enough capital upfront to get started.

Or you can make it legal...

[akiaki007]

TraderSport is an online exchange based out of Ireland that basically creates a market on Future Contracts. Very cool because you can buy and sell contracts on a LOT of different things, ranging from Index (DJIA, SPX, etc) to Superbowl winners.

The beauty of it being a true exchange is that you can sell your contract at some point if you don't want to hold on to it anymore. Example: You buy Giants win 2004 Superbowl today which is valued very low, and say the Giants win their first game and the value goes up, you sell it make a couple of bucks and invest it elsewhere.

So...legalized gamling?

Will answer questions

[yamla]

I worked for a company in 2000 and 2001 that wrote and sold the software to run these companies (well, some of these companies... BetOnSports was using our software at least for a while, several others were as well).

The software isn't particularly interesting but it means I have direct knowledge of a number of items... whether Wise Guys actually exist, how you really can regularly make money as an informed gambler (and why the gambling houses don't care), whether there's any back doors in the software, what language the software was written in, etc. etc. etc.

Ask away if you wish, I'll try to answer any question to the best of my ability. I'm well outside of the NDA now.

Re:Will answer questions

[yamla]

I'll probably post a more detailed message later as a reply to my initial post, going in to a bit more detail.

As to why accounts get closed down, that is entirely up to the specific gambling house. Our software provided them only ways to help determine if the account was a wise guy or not. The only real explanation I can come up with for a legit house to close you down is that they are finding it hard to keep both sides of the line equal. That is, they need about as much money on X-to-win as on Y-to-win. You have to remember, though, that many (most?) gambling houses are run by organised crime so sometimes they're just going to be bastards.

Gambling houses are not generally interested in the true probabilities (which is why some people can continue to make profit). So long as they can collect their juice, they are happy. That way, the house wins regardless of which side of a line wins. Now, NOT every house runs like this... some try to get closer to the true probabilities. However, this is much more risky if the house is wrong. If they instead just try to balance the money bet on each side of the line, they are guaranteed to make a profit.

You wouldn't want the code, trust me. I don't have the code any more, of course, but when I was still working for the company, we had roughly a third of a million lines of code. In Visual Basic 6. Now, I don't like VB at the best of times but I acknowledge that it has its place. Also, VB.Net is meant to be much better. But there's no way you should have that many lines of code in VB6. Maintenance was a nightmare. Although we did put an effort into using a decent design, nowhere near enough effort had gone in at the beginning. That we could maintain it at all (while continuing to add features) was impressive, to be honest.

At least we did use a bug tracking system.

That said, there are no known backdoors. I'm not saying the software was secure because I know full well that it wasn't. But there were no backdoors that we knew about and we minimised the potential security issues for the web-enabled version as much as was reasonable.

What's the problem?

[ajs318]

Gambling at the racetrack is legal. Gambling in licenced betting shops is legal. Gambling in casinos is legal. What's the problem with gambling on the Internet?

Maybe some jurisdictions don't have the same rules of fair play or something ..... I can understand someone might want to limit offshore betting, but surely the proper way to do it is to use a domain name over which you have jurisdiction. EG. William Hill use a secure server with a .uk domain name. They could have that domain name withdrawn if they get a bad reputation.

I certainly can't see anything wrong with gambling per se ..... it's only a problem if someone starts spending more money than they could afford to lose, but you can do that in any number of ways ..... drink ..... fags ..... having kids ..... all of which are perfectly legal!

A proper bet at a bookie's is about one thing: can you weigh up the odds more accurately than the bookmaker? If you believe the probability of an outcome is greater than the odds would suggest, then the bet is justified. On the other hand, if the probability is worse than the odds would suggest {UK Lottery: 1 chance in [49*48*47*46*45*44*43]/[6*5*4*3*2*1] = about 14 million, as opposed to a payout of about 3.5M to 1} then you should steer clear.

And it ain't the government's job to stop people from doing stuff that might be bad for them ..... let 'em learn the hard way .....