How do betting exchanges like Betfair work?
A betting exchange is a bookie which uses technology to make sure you get a better price. It does that by reducing its risk, which means it doesn’t have to build in extra margin as a safety cushion. The effect is that punters bet on the price they want, and not the price they’re told they can have. Imagine two friends having a bet while watching a football match; an impartial observer holding the money while the game is played. A betting exchange works in the same way: our members bet against each other, and Betfair hold the stakes until the bet is settled. What are the benefits of a betting exchange account? Unlike traditional bookmakers, who employ people to compile the odds that they offer, Betfair don’t set odds, or bet in any event. We simply set up a market for our members to bet against each other. This means three main benefits for members: • 1. On average 20% better odds – If you want to back a selection, the odds are likely to be better than a traditional bookmaker, because i
