Some markets perhaps shouldn't exist

I'm uncomfortable putting the term "market maker" to what bookies do, but I suppose that is their function.  I'm also not too happy that fans express their team loyalty by betting on the team.  I've got no problem with a neighborly office pool as more social activity than anything else.  But in this piece they're talking about big payouts because of very high odds and a high volume of transactions.  I don't quite understand why the bookies are exposed this way, but it seems to me other possible shenanigans can readily result as a consequence of such a market.