Burning question: how do betting operators justify their commissions, even 0.5%? If everyone can create a bet and advertise it online, why pay a commission to a bookmaker? Note: this is not a nasty unfriendly question, I amĀ planning to set up a betting exchange and wish to hear wise answers 
[quote author=giulio link=topic=651.msg3490#msg3490 date=1411282193]
Burning question: how do betting operators justify their commissions, even 0.5%? If everyone can create a bet and advertise it online, why pay a commission to a bookmaker? Note: this is not a nasty unfriendly question, I amĀ planning to set up a betting exchange and wish to hear wise answers
[/quote]
a) everyone can createĀ - > Probably not everyone. You need to trust them they won't run away with your money (by deciding incorrectly).
b) bookmarker - > There are costs (e.g. programming, creating and updating the feeds, Web site, etc.)
c) advertise - > that's not free either
0.5% sounds about right. Even 1% is not too much (depending on circumstances), IMHO.
The other way you could look at this is, what does Counterparty save the betting operator? They don't have to hold or secure funds but they do still need strong security to protect the broadcast address private keys as well as their website. Maybe the fees need to be somewhere around those of traditional betting operators and instead of savings, players gain extra entertainment and informational value by being able to see the betting in the block chain.
@[color=rgb(51, 51, 51)][font=open sans][size=1em]giulioĀ [/size][/font][/color]
[color=rgb(51, 51, 51)][font=open sans][size=1em]You're welcome. I got valuable experience in this area (I'm being ironic - I got smoked on one of those centralized betting sites beforeā¦ Cost me several BTC in "tuition").[/size][/font][/color]
[color=rgb(51, 51, 51)][font=open sans][size=1em]Also here's another tip you may find interesting: I think (it was the case, and I don't know of any changes) the fee can vary. That is, you can rebroadcast a new % which is valid for future matched bets from that point on. That's quite interesting as you can start it with 0% and increase to 0.5% as the event draws closer, or use it in some other creative way.[/size][/font][/color]