Betfair is an online sports betting website that was launched in June of the year 1998. And, the website has since then seen massive growth to become the UK's largest on-line betting company and the largest bet Exchange Company in the world. The only thing about this website is that it is different from others and that is because it is not a traditional bookmaker. Well you see, a person that bets on this website does not bet against the website but bets against another gambler instead. This means that this company does not have any house profit in each bet that is placed. This also ensures that the bets on Betfair are completely fair. So, in summary, the basic idea is that gambler #1 bets in favor of an event and gambler # 2 bets against the event and if both of the gamblers agree to the odds, the bet is on!
The website can now boast over two million customers turning over a combined weekly sum of £50 million. Betfair has become a sports betting phenomenon since its initial inception in the year 1998 after which, it has now introduced more games and more places where a person can gamble under its own brand name that is the same as the name of the website. The website has literally revolutionized sports betting. Previously "punters" could back (predict to win) a selection they fancied at odds offered, now this website offers the opportunity to lay (predict to lose) a selection.
It’s a pretty great website and all but what it is not is a bookmaker. However, it is better for a person if they choose Betfair instead of a traditional bookmaker and there are quite the few reasons this statement. Here are some of the reasons that have the capability of supporting this statement.
- 1.Odds are better when you are dealing with a betting exchange- When there is a bookmaker that is brokering the bet, they keep their own house profit in the bet and they would set a margin there so that they have their own profit. However, if the person is engaged in a betting exchange, there is no house profit and that is the sole reason why the odds of profit on a betting exchange are more generous and more favorable than the odds on a bet that is placed with a bookmaker that keeps their own profit.
- 2.The odds are completely market driven - A traditional bookmaker does alter their odds on offer to ensure that they maintain a considerable profit margin on all of the outcomes. For example if they receive a substantial bet on one outcome they will reduce the odds on offer to all of the other customers. As Betfair is an exchange betting website, the odds that are on offer on the website are driven by what other users are prepared to match and bet, therefore in theory it should act as a "perfect market" and ensure that every better gets what they deserve.