Meaningful Betting

I’ve now finished my first batch of marking (Astrophysics & Cosmology) and I now have a few days to do other things until the next (larger) set of scripts arrives from Vector Calculus and Fourier Series which takes place on Saturday.

Before going home I turned my attention to the news of tonight’s “Meaningful Vote” in the House of Common’s about whether or not to accept the Withdrawal Agreement negotiated between PM Theresa May and the European Union. The Government is widely expected to lose the vote but it’s not clear by what margin. Interested to see what the betting markets think I had a look just now at the Betfair exchange and found this, on the basic question of whether the vote will pass or not:

(You might want to click on the image to make it clearer.) You can find the live odds here.

You will see that this is quite an active market – with over €700K being wagered. Odds of greater than 40 to 1 against a `yes’ vote but most of the action is on `no’. Note that quite a few punters are laying on this outcome, with odds of about 25-1 on. (The way odds are shown in the second row is that 1.04 means you with 4p for every £1 staked).

Clearly, therefore, the markets think the vote will fail. What is less clear is how many MPs will vote in favour of the Government. Here is the corresponding Betfair market:

The shortest odds are for the first option, i.e. for 199 or fewer voting with the Government, but there is activity across the whole range of possibilities. The press are talking about a defeat by 225 votes, but for what it’s worth I don’t think it will be such a large margin. I’m not going to bet on it, but I expect it to be defeated by less than 150 votes.

UPDATE: Not for the first time I was wrong. The vote was Ayes 202 Noes 432, a majority of 230 against. That means there were no abstentions.

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