What is a Betting Exchange

Betting Exchanges have changed the way people bet in a very big way. The appearance of betting exchanges meant that bookmakers decided to give tax free bets to their customers. Betting Exchanges are different, basically because it is one punter betting against another punter, rather than a punter betting against a bookmaker.

How does a Betting Exchange make a profit?

They take on average around 5% commission from the punter which wins the bet. This might not seem a lot, but the very fact Betfair, the biggest betting exchange, is the fastest growing company in the UK, should tell you different.

How do punters lay or back using betting exchanges ?

Backing is exactly what you would do at a normal bookmakers - you find your selection and simply bet on it. You can however “ask” for a better price than is currently available on betting exchanges. You do this by clicking on the “back” button, and changing the price to what you would like. Once you have submitted the bet, it will then move to the “lay” section, where
it may be matched by someone who is willing to lay it. If it is not, you will need to lower your asking price or take what is on offer, depending on how you feel.

Laying is the opposite of backing - it may be your opinion that a certain team or entity will lose an event on a given day - So, you go to the match on the betting exchange, and “lay” that team / individual. You click on lay and give the punter who wants to back that team the price which is shown, for the amount you wish. You don’t have to lay it all, you can lay part or take the lot if you wish. As above, you can click on “lay” then change the price that you are prepared to lay at, but again, it is not guaranteed to be matched, unless you lay what is currently on offer.

Betting exchanges are the future of betting, simply because they run at100% overround, effectively no profit, whereas bookmakers prices have an intrinsic profit in their prices.

Recommended Betting Exchange

Betfair is UKGF’s choice for you to start your betting exchange punting, they are the pioneers of online betting exchanges, and the busiest betting exchange by far.

Register with Betfair here and get a Free Bet!