Rebates

[Valuist]

Like some others on here, I have an account w/Pinnacle. Ever wonder what their incentive is to rebate the horse bettors? Is it to bring in enough new business where they know most will lose? What about the pros and semi pros who beat the game? Will the rebate be discontinued at some point? I also wonder if they are "tracking" players; checking for unusual betting patterns among winning players, then pushing sizable amounts of their own money thru on the combinations/plays the sharps are using. I would have to think that would be possible.

[cj]

I've wondered the same things. At this point, I'd have to say, even if they are doing that, it beats betting into the pools with no rebates.

[Valuist]

I have no complaints with them. If they want to do that, that's their business. It knocks the takeout down to a somewhat acceptable level-pretty much on a par w/sports betting.

[formula_2002]

Originally posted by Valuist
. Ever wonder what their incentive is to rebate the horse bettors? .

I would think it's the same as any basic business model. Increase volume, lower mark-up, and increase profit.

[quote][i]
I also wonder if they are "tracking" players; checking for unusual betting patterns among winning players, then pushing sizable amounts of their own money thru on the combinations/plays the sharps are using. [quote]

perhaps, but
History says..sell the picks and shovels to the gold miners and let them take the bigger risk.

[sjk]

Why couldn't they do a statistical analysis of each players action and when the statistics indicated that there was a 95% probability that the player has a postive ROI they could mimic that player's action.

I can think of several reasons why a large, publicly traded US based company (Youbet, Xpressbet) could not risk doing this.

Those reasons would not apply to a small off-shore company. Assuming they have a number of profitable customers they are leaving money on the table if they don't.

If a player bets small tracks and the shadow bets are big enough, the effect on ROI could be considerable.

[lurker]

Pinnacle will definately profile you. Once they have determined that you are a net winner they will reduce your rebate and co-mingle your wagers. Several of my friends have had this happen to them. If you are playing New york WPS and winning this wil happen quickly. E horse has been rumored to comingle and add to bets. I have not heard of TCbets or Vip doing this. BetCris and Grande will reduce limits.
Lots of contests for the Breeders' Cup. E horse is having a $25,000 Breeders cup contest. Brisbet continues to have several contests running. Last week for the Letitride contest. TCbets.com is running a deposit $125 get $125 free promotion. Bris is promoting $100 for $100.

[Valuist]

Lurker-

I don't care if they commingle my wagers. I'm not making $10K bets or tossing $5000 into a Pic 6. But how much will they scale back the rebate? Even some rebate is better than none.

[lurker]

The people that I know have had their rebate cut to 3% and 4 %. While you might not care if you are playing small and they co mingle what happens when they figure out that you are a winner and decide to add on? Suddenly that $80 exacta is now paying 65. Whats good about that?