A betting exchange is a marketplace for punters to bet against each other on sporting and other events at agreed odds. Traditionally, you would place a bet with a bookmaker who would take on the risk of backing your bet. With a betting exchange, you are betting against other punters who act as the bookmaker. This means that the exchange matches buyers and sellers, and taking on the role of the bookmaker is known as ‘laying’ a bet.
What are the benefits of using a betting exchange?
Bookmakers margin-bet every market they offer, which means they make more money when people lose than when they win. Because betting exchanges don’t margin-bet, their overround (the bookmaker’s equivalent to profit) is much lower. This gives punters much better value for their money. With bookies, you’re always up against vigorish (the industry term for the bookie’s margin), but exchanges allow you to shop around for the best price. This means that betting exchange users can potentially earn a lot more money than they would by betting with a bookmaker.
How do I make money from betting exchanges?
The key to making money from betting exchanges is to get better odds than you can find anywhere else. For example, let’s say you think Horse A will definitely win a race, but the best odds you can find are 3/1 with a bookie. You can go onto an exchange and offer those odds to other punters (known as ‘backing’ a bet), and if someone agrees to take your bet, then you’ve got yourself a customer. Remember, because you are acting as the bookie in this instance, you win when Horse A doesn’t win – i.e., if it loses or if there is a dead heat.
Another advantage of betting exchanges is that they offer a much wider range of sports and markets than bookmakers, meaning that there is usually an exchange for almost any sport you can think of. Whether you’re looking to bet on football, tennis, cricket greyhound racing or even horse racing, you’ll be able to find a betting exchange that suits your needs.
If you’re looking for better value for your money, then betting exchanges are definitely worth considering. By getting better odds than you can find anywhere else, you’re giving yourself a much better chance of making a profit in the long run. And remember, with Exchange Betting you always have the option of laying as well as backing bets!