One of the absurd arguments against Betfair and other betting exchanges is that punters can profit by making money on a horse not winning and this will lead to corruption.

That is absolutely crazy, inconsistent logic because it is already happening with sports betting on the TAB.

You know - when a TAB offers head to head betting on say a game of tennis. By backing a player to win punters are effectively making money by the other player not winning. In a head to head contest it is no different to laying the other player to lose. Except that the TAB is offering the odds and making the profit overall.

It is also the TAB that gives NOTHING BACK to say the AFL or other sports for using their intellectual rights. If the TAB was consistent it would be giving 5% to 6% of turnover to all these other sporting organisations for use of their intellectual property.