Earlier quoted context omitted.
Isn't this somewhat like how these new crypto prediction markets work? There is no house taking a cut, all of the winnings get paid out.
Kalshi and Polymarket take a cut and is making the markets as well. Yes you can create a market and fund it yourself, but almost no one ever does this. People have been trying to make true prediction exchange markets like this 3 decades, its basically impossible without professional market makers. Its largely impossible to fund "organic decentralized" prediction markets because the vast majority of money that goes in…
The real friction isn't just the house cut; it's the latency between centralized books and decentralized liquidity. Sharps aren't just smarter; they're faster. Most "organic" volume gets eaten by bots arb-ing the spread between Poly, Kalshi, and offshore sportsbooks the second a headline hits. I’ve been running a cross-book arb alert tool to track these inefficiencies. If you aren't monitoring the delta across venues, you’re essentially paying a hidden tax to the guys with better API access. Edge is a function of infrastructure, not just conviction.