In this article we will talk about all the pros and cons of betting exchanges in comparison with the classic bets in a betting shop.
What is a betting shop and betting exchange?
To begin with, briefly recall what a bookmaker is, what the principle of their work is, and how it differs from the betting exchange.
A betting shop (bookmaker) is an organization that offers its customers to enter into sports betting against themselves. In this case, bookmakers themselves develop a line of bets on many sports events and outcomes, involving calculation of betting odds whole groups of sports analysts and experts.
Betting shops use special programs that track volumes concluded against them bets on different events. If there are distortions in terms of the volume of concluded bets on a single event, these programs automatically change the odds in the line, prompting players to bet on the opposite outcome in order to balance the resulting bias.
Bookmakers do not charge direct commissions, but earn money due to the margin invested in the proposed odds. For example, in a match between two equal opponents, in which the game is played before the victory, the odds for winning each one in the bookmaker’s line will not be 1-to-1 (odds 2.0), but the odds minus the percentage of the bookmaker’s margin (for example, 1.95 for each with a margin of 5% and 1.9 — with a margin of 10%). Depending on the sporting event and the chosen betting shop, the margin can vary from 2-3% to 15-20%.
Winning on bets in a bookmaker is paid by the bookmaker itself. Thus, the bookmaker makes money on losing players and loses on winning. In this regard, the majority of bookmakers (with rare exceptions) reserves the right to close access to bets to any user without giving a reason, and actively apply this right against players who beat them.
The betting exchange is a platform for sports betting between players. The exchange itself does not participate in the acceptance of bets and the formation of odds on events. Players on the stock exchange sports betting among themselves. The odds and amounts of these rates are formed and agreed by the participants of the exchange.
In this case, the betting exchange acts only as an intermediary that “ joins ” sports betting fans from around the world and acts as a guarantor of all financial transactions. Read more about this in our article “How does the betting exchange.”
The betting exchange earns on commissions from the prisoners through it. Usually, the commission is taken as a small percentage (from 1% to 5%) from the profit of the winning rate, but some exchanges also take a commission from the lost rates. Many betting exchanges periodically organize promotions, during which they don’t take any commissions at all.
“Plus” players on the stock exchange rates earn at the expense of other users of the exchange. Because if the exchange earns commissions from winning bets, “plus” players pay this commission even more often than losers. Thus, the absolute majority of exchanges positively relate to the players winning them.
Betting exchange and bookmaker: comparison, pros and cons
Betting lines and odds
Bookmaker
Betting exchange
A wide range of sports, right up to the very unpopular;
A wide selection of all sorts of bets on each sporting event;
The appearance of the entire line of bets on the event at once, long before it starts;
Bet rates are calculated by groups of sports experts, therefore it is extremely difficult to find a profitable rate;
Bookmakers use special programs that, on the basis of the trend of the established bets, track the odds that are favorable to the players and automatically adjust them. Therefore, bets with profitable odds quickly “hide behind”.
Odds are chosen by the user, so they are more profitable than the bookmakers;
You can enter ultra-profit rates against inexperienced players on the stock exchange;
Very favorable rates can be concluded on both active and low-active sports markets;
The line of bets on a sporting event is formed gradually from the offers of bets from players of the exchange;
The line of bets is filled with odds slowly, the speed of forming the lines strongly depends on the interest in a sporting event;
The markets of the rates of many unpopular sports often do not attract the attention of players on the exchange and are not active (they rarely bet on);
There are no lines for outcomes with low interest (number of corners/offsides/cards, etc., number of goals/points/violations of individual players, etc.).
Reliability
Bookmaker
Betting exchange
Large bookmakers are very reliable.
Bookmakers reserve the right to cancel an already concluded bet (usually used in case of force majeure or suspicion that the match was contractual);
Bookmakers reserve the right to prohibit any user from making bets without giving reasons;
Sometimes small bookmakers go bankrupt and disappear with money from the accounts of their users.
Betting exchanges — as well as large bookmakers are very reliable. There are practically no small exchanges of bets, due to the specifics of their work, which requires a large number of users;
Exchange rates do not risk their own money at the conclusion of rates, and earn at the expense of the commission, which excludes their bankruptcy;
Prisoners on the exchange rates between users cannot be canceled.
Commission amount
Bookmaker
Betting exchange
Bookmakers do not charge direct commissions, but always lay their margins in event rates;
Large bookmakers for popular events offer lines with low margins (from 3 to 10%).
Small bookmakers usually lay a large margin (up to 50%);
Large bookmakers also often lay a large margin in the lines on unpopular sports.
The commission of betting exchanges is charged on the rates concluded through it (usually from the gain) and is rather small — from 1 to 5% of the profit;
The size of the commission of exchange rates is the same for all kinds of sports (with the exception of promotions to reduce commissions for individual events);
Many betting exchanges have loyalty programs that allow the most active players to receive a reduction or partial refund of commission.
Attitude towards winning players
Bookmaker
Betting exchange
There are only a few large bookmakers who are loyal to winning players ***.
Bookmakers have a negative attitude towards winning players, because such players bring losses to the bookies;
The vast majority of bookmakers quickly track “plus” players and close their access to the stakes.
Betting exchanges are earned on commissions, so they do not incur losses from winning players;
Betting exchanges benefit “plus” players, because they pay a large amount of commission (most exchanges charge only a commission);
Only the largest betting exchange of betfair showed a negative attitude towards winning players : in some cases, Betfair several times increased the size of the commission for “plus” players.
Live bets (during a match)
Bookmaker
Betting exchange
The live betting line of bookmakers is developed by sports experts and is very balanced;
It is impossible to “catch” critical moments in matches against bookmakers (the line is frozen at such moments and, often, live bets made shortly before the critical moments are canceled).
Live markets on betting exchanges are very active and changeable, so they are especially beneficial for betting;
Experienced players on betting exchanges can enter up to several hundred trading operations for a single event in live mode;
On the stock exchange rates you can engage in “catching” tipping points, because the responsibility for withdrawing bids lies with the players themselves, and not all of them are quick enough.
It will be extremely difficult for inexperienced and slow players to bet/trade on live events of betting exchanges.
Betting trading
Bookmaker
Betting exchange
Trading bets in bookmakers is not possible;
Catching “arbs” at bookmakers (which is somewhat similar to betting) is very dangerous, because A bookmaker can cancel one of the “stampered” bets.
Betting exchanges offer and actively develop betting trading;
Betting exchanges offer a number of additional tools that allow you to get more information about the markets, as well as automate certain operations on trading in exchange rates;
Trading bets on the betting exchange requires players to have additional knowledge and skills.
Simplicity and ease of use
Bookmaker
Betting exchange
Bets are made very simple: you need to select a sporting event and the expected outcome, specify the amount of the bet and confirm;
Betting against the bookmaker is instant;
Results tracking and betting calculations are automatic.
There are special additional programs that allow you to automate many trading operations on rate exchanges;
Experienced players on betting exchanges can create bot programs that trade on betting exchanges according to a certain strategy automatically;
The betting exchange itself tracks the results of sporting events and carries out all calculations on the rates concluded through it in automatic mode;
Betting on the betting exchange is much more difficult to do than against a bookmaker;
Bets are not instantaneous: they “hang” on the exchange as an offer and are concluded only when another player on the stock exchange accepts this offer (it can hang on the stock exchange for a very long time, it may not be accepted by any of the other players, or partially accepted ( not the full amount));
Sports events on the exchange rates — this is, in fact, markets. The betting exchange provides many additional tools that characterize these markets (the schedule of odds movement, the sum of concluded rates, the sum of offers for bets, etc.). These tools carry a lot of useful information, you need to learn how to use them.
Comparison of betting and bookmaker: conclusions
The procedure for concluding sports betting in a bookmaker is very simple. The bookmaker earns that players lose on betting, therefore.
It is very difficult to win at betting against a bookmaker: their lines of odds are carefully thought out and are calculated by groups of sports experts using specialized expensive programs;
The vast majority of bookmakers quickly tracks on winning bets of players and close their accounts, so as not to suffer losses.
Betting exchange is a complex tool that allows its participants to enter into sports betting among themselves. Use exchanges harder rates than bookmakers services, it requires additional skills.
Concluding rates on the stock exchange, you, in fact, argue with other people. Many of the exchange participants are poorly versed, as in sports, betting, and in the mechanism of the exchange rates. Therefore, it is possible to conclude very, very profitable rates on the exchange of rates.
The betting exchange provides tools for betting trading (“selling” concluded rates with a less profitable ratio), which allows players to receive guaranteed profit from the rates.
With all this, the betting exchange earns on commission, and not player losses, as a result, the exchange loyally bears to winning players.
Bookmaker bets are suitable for those who make them, for the most part, for the sake of interest: easy to bet, but very hard to win. Betting exchanges are suitable for those who want to make money on bets: it is more difficult to use, but to win is easier and more stable.
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