Why do bookies sometimes pay out early?

barf0r · 14 Aug 2007 at 14:54

I can't see the reason why bookies pay out early on some bets before the thing betted on has happened.
Ok, so when they pay out early the event is probably 99.9% likely to happen, but there is always the chance that it won't.

So why don't they just wait and see in case it doesn't happen?
Also, surely while they hold the money they can keep it invested somewhere and make more off it? So they longer they have it the more they get from it.
And lastly, the longer the time from when the bet was made to the winnings being collected, the more people will lose their slip so won't be able to claim.

So, what is the reason for paying out early, despite the points I put forward against paying out early? Anyone know?

Greenlizard0 · 14 Aug 2007 at 15:06

I was talking about this to somebody and apparently they can't do as much with money that is potentially owed to customers? I think it also means that they can close the bet off early, therefore now allowing some people to place crazy high money on events that are likely to happen and reap a few thousand back.

E.g. last season when Manu were running away with the title just before they won it. Say e.g. the odds were 20/1 for them to win the league. You bet £200,000 on them to win - and you get back your initial stake plus £1000.

barf0r · 15 Aug 2007 at 11:55

Can't they close betting though so no one else can bet, but bets made before that still stand?

Gilly · 15 Aug 2007 at 11:58

Greenlizard0 said:
E.g. last season when Manu were running away with the title just before they won it. Say e.g. the odds were 20/1 for them to win the league. You bet £200,000 on them to win - and you get back your initial stake plus £1000.

You mean 1/20? 20/1 would be fantastic odds for them winning the league at the start of the season, never mind when they're 'running away with the title'.

ErinGoBrath · 15 Aug 2007 at 12:04

They do it for publicity mainly.

It give the bookies a good name and stimualtes betting the the particular market they have paid out on.

Greenlizard0 · 15 Aug 2007 at 12:09

Gilly said:
You mean 1/20? 20/1 would be fantastic odds for them winning the league at the start of the season, never mind when they're 'running away with the title'.

Ah you know what I mean, the sum explained it

seaviewuk · 15 Aug 2007 at 12:18

Greenlizard0 said:
Ah you know what I mean, the sum explained it

Even that was wrong

£200,000 at 1/20 returns a profit of £10,000

div0 · 15 Aug 2007 at 12:22

ErinGoBrath said:
They do it for publicity mainly.

It give the bookies a good name and stimualtes betting the the particular market they have paid out on.

This is what I've always thought.

Youstolemyname · 15 Aug 2007 at 12:45

my fave one was when Fred Done paid out on Man U winning the 2001/02 title early. Arsenal went on to win it

K.C. Leblanc · 15 Aug 2007 at 13:11

The sooner they pay the money out the sooner the punter can bet it on something else.

ZXSpectrum · 15 Aug 2007 at 13:23

But what happens if the event doesnt happen? Do they ask for it back? Has it ever happened?

Youstolemyname · 15 Aug 2007 at 14:53

Skyline said:
But what happens if the event doesnt happen? Do they ask for it back? Has it ever happened?

Youstolemyname said:
my fave one was when Fred Done paid out on Man U winning the 2001/02 title early. Arsenal went on to win it

Done lost a fair few quid that day!

Gilly · 15 Aug 2007 at 14:58

Youstolemyname said:
Done lost a fair few quid that day!

Thats not the event, thats the result.

Youstolemyname · 15 Aug 2007 at 15:00

Gilly said:
Thats not the event, thats the result.

I read it as the event being Man U winning the premiership. It didn't happen...unless he means like when the grand national was cancelled. Bookies had to return all bets as they were void.

meh. Im off the pub to watch the match.