Betting exchange

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A betting exchange is a prediction market . This concept was first implemented on the English website Flutter.com in 2000. It enabled person-to-person betting for the first time.

In principle, a betting exchange works like a sports bet between two football fans who are arguing about the result of an upcoming football match. If the two of them want to bet on their respective tips, a betting exchange takes on the role of trustee . The betting exchange provider usually makes proportionally small deductions on the profits made for the service it provides. Inferior bettors only lose their bets.

In contrast to the odds offered by classic bookmakers, private individuals bet against each other on betting exchanges and specify the odds for which they are willing to accept a bet. A bet is made for the occurrence of a certain event (= back bet) and against it (= lay bet).

On those betting exchanges that are very busy, there is a wide range of bets, from the matches of the German regional football leagues to social and political bets to the development of the Dow Jones . Quite often higher odds are offered than with bookmakers , as the latter include a certain profit margin in the odds they offer.

The main advantage of the betting exchange is that the odds are much more interesting than those of the bookmakers, since the share that is retained by the betting exchange is around 5% next to 10% for the bookmakers. The disadvantage is that you are dependent on the betting offers of other bettors or on their willingness to take a bet.

The best-known betting exchange is Betfair (offered by The Sporting Exchange Ltd., London), which regularly receives multiple transactions with the London Stock Exchange .

Betting exchanges can also be used for forecasting purposes. For example, for the outcome of political elections. See also the article forecast market .

See also

Web links

Individual evidence

  1. ↑ http://kelbet.de/betting-exchange-back-lay.html Betting Exchange: Everything about back & lay.
  2. ↑ http://www.sportytrader.de/betting-exchange.htm Definition of the betting exchange on sportytrader.de.