Most conventional sports betting involves placing bets with a bookmaker. While it is possible to shop around for the best Odds for a given sporting event, a sports trader is restricted to Back bets only. Betting exchanges enable bettors to assume the role of a bookmaker by allowing them to Lay bets for other bettors. The betting exchange connects traders who wish to Back an outcome with those who wish to Lay it. This model is similar to a financial exchange (e.g. a stock market). Odds on betting exchanges tend to be more favourably priced since there are far more individuals willing to Lay Odds so there is more competition to attract money from backers.
Betting exchanges charge a commission to bettors. Typically, this is only applied to profitable trades where the bettor accrues a profit. The level of commission varies between 2% and 8% and can be adjusted by the exchange based on the bettor's performance level (with more profitable traders paying higher commissions).
Contributed by: Ralph Windsor
Betting exchanges charge a commission to bettors. Typically, this is only applied to profitable trades where the bettor accrues a profit. The level of commission varies between 2% and 8% and can be adjusted by the exchange based on the bettor's performance level (with more profitable traders paying higher commissions).
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How does a betting exchange work?
Tutorial video from betting exchange operator, Smarkets about what betting exchanges are and how the operate.
External Links
Betfairhttps://www.betfair.com/exchange
Betfair is the oldest and most popular betting exchange.
BETDAQhttps://www.betdaq.com/
BETDAQ is currently owned by bookmaker Ladbrokes, but was formerly independent. It is the major competitor to Betfair.
Smarketshttps://smarkets.com/about/
Smarkets is a sports betting exchange. They currently charge a commission of 2% which is at the lower end of the scale.
Matchbookhttp://www.matchbook.com
Betting exchange operator.
Betting Exchangeshttps://en.wikipedia.org/wiki/Betting_exchange
Wikipedia article about betting exchanges.
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