I have told the story a few times (bore myself silly with it) about the Corals account I had but it helps to highlight this point very well. That account was £200k down at one stage. Corals couldn’t get my money fast enough. I was lucky enough to get the account back into a £10k profit before it was effectively closed. The upside for the customer is very very limited. The downside is pretty much whatever money they have or can get their hands on. Often the bookmaker won’t even give you the chance to get the money back. I know people who have had accounts restricted/closed that were £50k down etc.
I was recently on a Spaces chat and a very interesting question came up on it. Essentially if I have £1m in my bank account how much should I be allowed to lose with regard to affordable gambling. It was a pertinent question given this interaction Kenny Alexander had at a parliamentary hearing in 2020.
Lord Foster of Bath: If you have checked with my bank and everything else that I have a million quid, how much do you think that it is affordable for me to spend? How do you work it out?
Kenny Alexander: In that case, we would probably take a view that you could spend £20,000 or something of that magnitude.
It is clearly some of the most disingenuous nonsense that anyone has ever said in a public forum. Standard fare in this industry. Alexander was a leading part of the culture of extracting every single penny out of customers, whether they could afford it or not.
The general consensus on the Spaces chat was that if someone had £1m and they wanted to bet it, it’s really their prerogative what they do with that money. The only proviso I would put on it is that it isn’t done in a very short time period (i.e. a single night) or that they weren’t demonstrating ridiculous problem gambling traits.
Coming back to the original point though I feel increasingly uncomfortable with the idea that someone can maybe win £10k (hugely optimistic unless a big win) but potentially lose millions. The asymmetric risk profile of that doesn’t feel right for the customer. At poker you turn up and sit down at the table with what you are willing to lose. You might rebuy and it might be for more than that but there is a level of transparency for everyone involved. With betting I might be limited to winning £xk with almost unlimited downside. No one knows though as the industry is all smoke and mirrors. There is no clarity or openness as to what ‘x’ is.
I am not saying that myself and a bookmaker should both stick £500k into the mix and go head to head. In a fair contest. They wouldn’t do it because they only pray on the weak. That’s their business model. The bookmakers should have to be far more up front though with how these things work in reality. If someone wants to lose £1m and can affod it then that’s on them. They should be made aware though that the bookmaker wont be taking the same type of risk. The days of you can only win a small amount but lose a fortune is hardly befitting of a fair industry.
ProPunting 
wow!! 57195. Asymmetric Risk for Bookmakers
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