Competition Increasing For Betting Exchanges
May 16, 2018
One of the most crucial parts of matched betting is choosing the best betting exchange to use. There are plenty of different factors to consider when deciding on which exchange to place your lay bets on, and you may find that different exchanges are best for different situations.
If you haven’t tried matched betting yourself yet, you may not have come across terms like ‘back bet’ and ‘lay bet’. They are easy to understand though.
- Back Bet: Betting exchange term for betting on an outcome to win
- Lay Bet: Betting exchange term of betting on an outcome to lose
By choosing the right betting exchange, you can actually maximise your matched betting profits and make more money in the long term. Since matched betting first became possible, Betfair Exchange have been the market leader and by far the most popular choice for matched bettors around the UK.
However, there is an increasing amount of competition for the crown with a number of other betting exchanges staking their claim to be the number one. One piece of evidence to state that some of their competitors may be closing the gap on Betfair is the fact that Paddy Power Betfair have detailed a recent decline in Exchange revenues.
The 2018 1st quarter statement mentioned that revenue for Betfair Exchange was down 7% for the first three months of the year. This was mainly down to lower horse racing commissions than in previous quarters. It was an interesting statement that actually seemed to play down the importance of the betting exchange, something that Betfair have spoken about glowingly in the past.
For example, back in 2010 they spoke about the way that the exchange had “fundamentally changed” the world of sports betting. Perhaps other exchanges have not only caught up to Betfair in terms of performance, but actually surpassed them.
One of the main reasons why matched bettors are deciding in increasing numbers to use an alternative betting exchange is due to the lower commission rates on offer from the likes of Smarkets and Matchbook. Betfair’s 5% is simply not as appealing as the 2% from Smarkets and the standard commission rate of 1.5% for Matchbook.
When matched betting in the long term, choosing an exchange with a lower commission amount will definitely maximise all of your profits. With MatchedBets.com, you will be able to follow our guides to make the best expected profit possible.