> These things are dangerous. Someone who can take AWS down such as an employee can place a bet.

Imagine if the betting website itself shuts down because AWS is down. (half joking I suppose though)

> These bets aren’t as innocent as they seem because the bettors can often influence or change the outcome.

Overall I agree with your statement that these betting markets also are able to incentivize a lot of insider trading and one can say negative scenarios as this has given them an incentive to capitalize on that.