What is the difference in a bookmaker and a betting exchange?
The main differences between a betting exchange and other bookmakers are: • The customer does not bet directly with the betting exchange. It simply connects gamblers with opposing views on the outcome of an event. They only accept bets if they are ‘matched’ by another customer and it uses technology to match bets instantaneously. If the bet is large then it is likely that it will be matched with multiple counterparties. • With a betting exchange, customers can “lay” a horse – i.e. back it to lose – as well as back it to win or be placed. • Odds on betting exchanges are expressed as decimals (e.g. 4.5) and not in the traditional way (e.g. 7/2). 4.5 means that for every pound staked you receive a return of 4.50 which includes the pound stake. Example: The traditional equivalent of 3.0 is 2/1. • Betting exchanges are free markets and the prices are not controlled by the bookmaker. A traditional betting shop sets its own odds and the customer has to shop around among bookmakers to find bet
