Online Betting Exchanges

Written on April 16, 2009 by Laymybet.co.uk

Online betting exchanges such as Betfair, Betdaq and WBX offer another way to bet online compared to betting against a traditional bookmaker. Online betting exchanges are also referred to as person to person betting.

An online betting exchange enables regular punters to back both for and against odds that are typically set by other punters. The ability to bet online using a betting exchange is a unique concept and ensures you get the maximum value for each bet placed.

Typically a bookmaker will aim to take between 8 and 12% profit per sporting event. This profit margin is called the over round and is factored into the odds set at the beginning of the sporting event. By setting the odds against an over round ensures the punter cannot back every outcome to win.

Betting exchanges always have a very low over round (typically 0.1 to 1%) which means the punter will get the highest odds possible. However, using the services provided by the online betting exchange will incur a commission payment to the betting exchange company. This will range from 2 to 5% depending on which betting exchange you use.

The best betting exchanges are: Betfair, Betdaq, WBX (World Bet Exchange), Mybet and Betsson.

Prior to betting exchanges punters only had the ability to Back odds that were Laid by a bookmaker. Betting online via a betting exchange allows you to place both Back and Lay bets as if you were both punter and bookmaker.

If you think a Horse will win a Horse Race then you would Back the Horse on the Betting Exchange. If you think a Horse doesn’t stand a chance of winning then you will Lay this Horse to lose on the Betting Exchange instead. Alternatively, a betting exchange allows you to Lay all the Horses in a Horse Race as if you were the Bookie.