The ideal betting situation for bookies is 50%/50%...This is because the bookie requires 10% “vigorish” from a losing bet.
It seems they are showing that Obama should win by 80%/20%...What this shows me is they are trying to get MORE Obama bets by claiming his victory margin...The betting may actually be running higher for Romney than Obama and the bookies are trying to even things up...
I think you got your analysis backwards I think- they are trying to attract more money to the Romney side by offering a higher payoff
which means there is a lot of money on Obama’s side- but Intrade is not allowed to trade in USA and overseas they are excited about an obama 2nd term - they love hime way more than we do