As a public service, let’s translate these betting odds into plain English. If a bettor wagers £10 that a majority of voters in Britain will vote to leave the European Union (“leave”), odds of 6/1 implies that the bettor stands to make £70 total: his initial stake of £10, plus a huge profit of £60. (Notice the amounts here are stated in pounds since this is a British betting site, where gambling on political and sporting events is totally legal.) By contrast, if the bettor wagers £10 that a majority of the voters will vote to remain in the E.U. (“remain”), with odds of 1/7, the bettor will only receive £11.43: his initial stake of £10, plus a relatively miniscule profit £1.43. Notice what this particular betting market is telling us: “remain” is a safer bet than “leave.”
- 180,825 hits
This work is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License.
Blogs I Follow