When Betfair, the first online betting exchange, was launched back in 2000, it transformed the way people bet on sports online. Since that time, other betting exchanges have also launched including Betfair’s main competitor, Betdaq.
Many people have already left the bookmakers behind and move to betting online at Betfair or Betdaq, however others have not yet made the move. The main reason for this is a lack of understanding regarding what the betting exchanges actually are, and how they benefit users.
Here, I will explain four big advantages that the betting exchanges have over the bookmakers.
Get better odds….
Before the exchanges came along, punters were forced to accept the prices that the bookmakers offered. As you may be aware, bookmakers’ prices have in-built profit margins known as the over round. With the betting exchange if you do not like the price that is on offer, you have the ability to request a better one. The odds you can get on the exchanges are, on average, around 20% better than those on offer at the bookmakers.
Oppose an outcome….
When you bet with a bookmaker you are betting that an outcome will happen, and the bookmaker is betting that it won’t happen. This is fine if you are betting on something like the winner of a tennis match as there are only two possible outcomes, but what if you are betting on who will win an entire tennis tournament?
If I wanted to bet that Roger Federer would not win Wimbledon, with the bookmaker I would have to actually back every other player who is competing in the tournament! The betting exchanges make it possible to bet that something will NOT happen; all I need is a backer somewhere else in the world who thinks it will. Betting that something will not happen is called laying a bet.
You no longer have to just back a horse or football team before the event and keep your fingers crossed – with Betfair or Betdaq, you can now bet during the event up until the horse crosses the finish line or the full time whistle is blown.
Freedom to succeed….
Bookmakers will limit stakes or in extreme cases close accounts of individuals who are, in their opinion, winning too much money. The betting exchanges don’t care how much you win, in fact winning is encouraged. This is because it is not their money you are winning – all money comes from other users. The exchange makes its commission whoever wins, so there will be no penalty for your success.
As you can see, the betting exchanges have various benefits that online bookmakers, due to their nature, are simply unable to offer.
There is a small learning curve involved in using the exchanges for those who are used to using bookmakers, or those who have never bet at all. However, both Betfair and Betdaq offer tutorials to help new users become accustomed to using their websites. After a few visits, the majority of users become attuned to the differences and using the exchanges becomes second nature.