Have Betting Exchanges Changed Betting Industry
Despite being a relatively new form of sports wagering, betting exchanges have been flourishing, and they are gaining more loyal fans every day. By now, all betting aficionados probably know what betting exchanges are, but if you’re new, this article will help you understand it better.
However, there is one question we have been asking ourselves — has this changed the evolution of the sports betting industry? And if so, how? In the next couple of paragraphs, we will do our best to answer the questions and explain how the betting exchange works.
What Is Betting Exchange and How Does It Work?
Simply put, a betting exchange is a place where two punters who want to gamble on the opposite outcomes of a sporting event meet. There are two options — backing and laying. Backing the odds means you bet on a winning outcome of a game while laying means the opposite — you bet on a losing outcome.
Both punters need to agree in terms of stakes and odds. Only after both participants have agreed, the bet is considered valid. If you opt for the lay bet, you will be acting as a bookmaker, since you need your opponent to lose. Opposed to traditional bookmakers, betting exchanges represent the middle ground where two punters bet against one another.
You might be wondering how the platform gets to profit, and the answer is simple — betting exchanges take a commission from every winning bet, and it usually ranges from 2% to 5%.
How Betting Exchange Influences Sports Betting Industry
Betting exchanges have disrupted the traditional style of online sports betting that’s been present for a long time. These platforms were created with punters as a focal point creating the possibility of person-to-person betting. That way, punters have more control over the whole process — both of the participants can adjust the odds and stakes they put into their bets. There’s no skewing the odds in the bookmaker’s favour — it’s all about the compromise between two punters.
The primary goal was to bring more experienced and financially stable punters into the fold, offering them more autonomy and relieving the platform of any responsibility towards the outcome. With new features, such as back and lay bets, better odds value, and lower transaction costs, betting exchanges have quickly attracted the attention of the most passionate punters.
In that sense, betting exchanges have changed the way we perceive betting. However, this type of betting still has a long way to go before it becomes a real threat to the prosperous and stable industry of traditional bookmakers.
Advantages and Disadvantages of Betting Exchange Platforms
Betting exchanges have revolutionized the betting industry, and now, millions of punters worldwide have a new and innovative way to place bets. Therefore, betting exchanges come with certain advantages that make them stand out from traditional bookmakers. Naturally, if there are benefits, there are some disadvantages also. So, let’s go through the most distinctive pros and cons found in betting exchanges.
The Pros
Lay Betting
This is the main difference between standard bookmakers and betting exchanges, as it gives punters an additional betting opportunity. If you don’t like the selection of events, you can always choose to place the lay bet.
If you add lay bets to your betting strategy, you can make it a lot more fun, and it will most certainly open a whole new world of betting possibilities.
Better Odds Value
If you visit a couple of betting exchange platforms, you’ll notice that they don’t necessarily have superior odds in comparison to the traditional bookies. What they offer are better prices, which means you can make a bigger profit if you win the bet.
Trading
If you’re a fan of trading, then the betting exchange is the platform for you. Essentially, you will be able to trade your bet and limit your losses. Betting exchanges allow you to strategise and find the perfect trading method that will bring you more winning bets.
You’re on Neutral Ground
When you’re placing bets with traditional bookmakers, you’re actually going against the bookie itself. Betting exchanges, on the other hand, act as a neutral ground — it doesn’t matter if you win or lose, since you’ll be betting against another punter and one of you must lose. In any case, the betting exchange will get the commission.
Moreover, it seems like a fairer option — you won’t be going against computers and complex algorithms, you’ll be fighting another person, and the exchange is like a boxing ring where the fight is held.
Make the Most Out of Free Bet Bonuses
Betting exchanges allow you to apply the matched betting strategy, which can guarantee your winnings from bonuses and promotions available on these platforms.
You can place risk-free bets by laying your bets — the option that’s only available on betting exchanges. So, once you claim a bonus, make sure you use a betting exchange platform to guarantee a profit.
The Cons
There Are Only a Few Betting Exchange Platforms
As already mentioned, there is still a limited selection of betting exchanges available to punters. While they have taken the sports betting industry by storm, they have yet to prove a better option than traditional bookmakers that are still extremely strong.
Limited Betting Opportunities
There is no doubt that the most popular sporting events will be covered by betting exchanges — football, tennis, horse racing, etc. However, less advertised sports will be more difficult to find on betting exchanges, simply because there isn’t enough interest. In case that happens, you can always return to the traditional bookie.
Possibility of Not Getting Your Bet Matched
One of the main drawbacks is the fact that you might not always find a match to your bet. This is directly related to the paragraph above — you probably won’t have any trouble matching your bet on the most popular sporting events. Something like this happens when you’re betting on less mainstream sports and events.
Final Thoughts
We believe betting exchanges are an innovative option for more experienced punters, as they are more complicated to use compared to the traditional bookmakers. So, if you’re still learning the ropes, you might want to wait a little bit before you turn to this style of betting.
However, given the fact that the online sports betting industry is always evolving, we might see some new forms of betting exchanges appear on the scene. They represent a new and refreshing take on the traditional style of betting, and we think we’ll see more of them in the future.
