What is a betting exchange?
Betting exchanges are online marketplaces where punters bet against each other rather than betting against a bookie. They simply match gamblers who are looking to back an outcome and those looking to lay an outcome i.e bet against something happening. The betting exchange just provides the technology to match the gamblers together.
Check out this guide for more information about back and lay betting.
The odds for a given market are often higher at an exchange compared to a traditional bookie as it’s an open market. The customers set the odds where as the bookies have direct control over the odds on their sites.
Bookies and betting exchanges also make money in a completely different way. The traditional bookie makes money by offering less efficient odds and placing their own lay bet once they receive a bet from a customer. A betting exchange makes money by charging a commission on each winning bet a customer places. This commission depends on which exchange you use and varies from 1.5% to 5%.
The first betting exchange was created in 2000 by Betfair and since then these platforms have had a great deal of success thanks mainly to their flexibility.
Different betting exchanges
There are a number of betting exchanges out there and each of them have their own selling points. Some have more markets available, some have a lower commission rate and some have better odds. Below are the main three we use for matched betting.