What are Betting Exchanges?
Betting exchanges are peer-to-peer betting platforms where people bet against each other rather than at online bookies. An online betting exchange doesn't take on any risk, it simply facilitates bets between its users, and takes a small commission on any winnings.
Betting exchanges aren't as well known to most visitors as online bookies are.
Unless you're a really experienced punter or are from the UK where they use bet exchanges all the time, and they are very popular, you'd not be aware of this type of online betting.
How Betting Exchanges Work
The way betting exchanges make their money is with a small transaction fee or commission basis. Exchanges bring together players and take a small commission on net winnings.
Online betting exchanges like Betfair Exchange and BetDAQ started around 2001 and brings back the old style of betting which is the player to player betting scenario.
They've even started to offer free bets over recent years! You never place a bet against the betting exchange, like at a bookie, you bet against other members of the betting exchange.
If you use a betting exchange, keep in mind that the odds at these exchanges are anywhere from 15% to 20% lower then the best online bookies most people are used to betting at.
Betting Exchange Commissions
Betting exchange commissions are similar to online poker table percentages. In poker rooms, the house takes a rake, or percentage of each poker game played.
There are several exchanges on the internet and one of the biggest out there is Betfair Exchange, they charge a modest transaction fee of 5% of the net winnings.
But let's be clear, betting exchanges are not the same as online bookies. Basically bookies that operate online are like stores with set prices, no negotiating on the price and it's the same price at any other online bookie, where, as betting exchanges resemble the stock market.
This is a common misconception or mistake that bettors make.
At the stock market, an investor have stocks that they want to buy or sell at certain price. Another investor is willing to pay that price offered for that stock and so a trade can be done.
There have been millions of bets placed through these bet exchanges. One of the main reasons why sports bettors like them so much is other bettors actually set the odds and not the online bookie. The majority of betting exchange betting is done in the UK.
At sports betting exchanges with odds at 15% lower than online bookies the appeal is there to place a bet and try exchanges out. When choosing online betting exchanges make sure it's a licensed and government backed betting exchange.
The internet is a fabulous place with numerous sports betting exchanges like Betfair or BetDAQ.
So what are you waiting for? Now you know what betting exchanges are and all the benefits they offer when betting online, it's time to go place your first exchange bet!
Frequently Asked Questions About Free Bets
Before you go ahead and claim your first free bet offer, here are quick answers to some of the most common questions that we regularly get asked:
- What Are Free Bets?
Free bets are a type of betting offer that bookies use to both attract new customers, and to reward loyalty. They let you place a bet for free, without using any of your own money. - Are Free Bets Really Free?
Free bets are real credit that a bookie adds to your account, but can they really be called 'free'? We explain how they work, the catches to look out for, and what 'free' really means. - How Do Free Bets Work?
A free bet is promotional credit added to your account by a bookie. They allow you to place a bet without risking your own funds. If it wins, you receive the profit but not the stake. - What Are Risk Free Bets?
Risk free bets are offers that bookies use to encourage betting engagement. With a risk free bet, you bet using your own money, and it's refunded as credit on your account if it loses. - Do You Get Your Stake Back on Free Bets?
No, unfortunately you don't get your stake back on free bets. Most bookies offer them under "Stake Not Returned" rules, so if they win you get the profit, but not the stake back. - What Does Money Back as a Free Bet Mean?
Money back as a free bet is a type of betting promotion. If a bet loses and meets the criteria set out in the offers terms and conditions, you get your stake back in free bets. - Can I Cash Out a Free Bet?
Yes, some bookies do allow you to cash out free bets, but it's not common. You'll need to check the offer's terms and conditions to know whether you can use cash out or not. - Are Free Bets Worth It?
Yes, free bets are worth It - if you know how to use them. Read our expert analysis about free bet conversion rates, and the best strategies to maximise their value.
Now that you have a feel for how these promotions work, why not compare the free bets that bookies are currently offering, and find a deal that suits your betting needs.
Responsible Gambling: Free bets should enhance your enjoyment of betting, not create problems. Make sure that you only bet what you can afford to lose. If you're worried about your gambling habits, free and confidential support is available at GambleAware.org.
