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They facilitate bets between bettors and take a cut of profits for providing the service. If you want to pedantically call them not an exchange based on some detail of how they operate or more likely, a misunderstanding of how they operate, that's irrelevant to the fact that it's possible to make a profit trading on either of them, if you have an edge.

I'm pointing out it is possible to trade profitably, which it is. If you don't have an edge and can't trade profitably then of course it's negative sum and you shouldn't do it.