Betting exchanges such as Betfair and Betdaq have revolutionized the way many punters now place their bets. The most obvious benefit the exchanges offer over the traditional high street bookmaker is the ability to lay bets on horses to lose their race, as well as the conventional practice of backing them to win.
The pioneer in exchange betting is Betfair and today it operates the most popular betting exchange website.
Essentially, Betfair brings together individual punters with opposing views, and cuts out the traditional bookmaker. All bets on Betfair have been placed there by users who either want to have a bet in the normal way (backing), or offer odds to other punters (laying).
Bets are matched between people with opposing views.
When you “back” a selection (be it an individual, a team, horse, dog or other), you are betting that it will win. This is just like betting with conventional bookies.
When you “lay” it, you are betting against it winning. For malaysian horse racing example, if you’re betting in a market on which team is going to win the Premiership and you lay Man Utd, you offer odds to other punters who wish to back Man Utd. If Man Utd do not win, then you pick up the backer’s stake. If Manchester United wins the game, then you must pay out. This is what bookmakers traditionally do.
Listed below are ten compelling reasons to join the revolution and bet on the exchanges:
Better odds: when you place a bet on a betting exchange you do away with the bookmaker, who has traditionally acted as the middle man. As with any other middle man the bookmaker takes his cut. He will always attempt to construct his book and manipulate prices downwards such that whatever the outcome he will make a profit. By taking the bookie out of the equation you can generally get odds on Betfair 20% higher, which means more profit.
Lay as well as back: in the past you would only win your bet if your selected horse won its race. Betfair also allows you to act as bookmaker and lay a bet that a horse will NOT win the race. If your selection doesnt win, then you collect!
Trading for guaranteed profits: on the betting exchanges you can take advantage of movements in the price of a horse to secure guaranteed profits much like trading the financial markets. Profit whatever the outcome of a race? Impossible you might think&. I will give you an example to demonstrate:
Lets imagine you have a horse priced at 3/1 in a race. You think the price of this horse will shorten because it is well fancied. You back the horse to win with a wager of £100.
The price of the horse falls to 2/1 just before the race starts as lots of punters also back the horse. You then lay the horse for £134.
Now, lets examine how you will make a profit. There are only two outcomes for your horse it will either win the race, or it will not win the race.
If it wins, you will win £300 (£100 @ 3/1). However, you will have to pay out on your lay bet you will pay out £268 (£134 @ 2/1). Your profit is £300 less £268 equals £32