One of the most revolutionary changes that the advent of the internet has produced, is the introduction of new and sophisticated online betting systems, where the traditional bookmaker is no longer king.
The new breed of betting systems is called a betting exchange and the way that these exchanges operate, means that as a punter the odds are more stacked in our favour, which is of course no bad thing.
Betting exchanges such as Betfair enable punters to place bets against each other in support of which horse they believe will win or lose a particular race. If one person believes that a particular horse will win a race; they will back that horse and offer a wager price. If someone else believes that the horse will lose the race, and they like the odds that are offered, they will lay it. At that point, the bet is matched.
Players Control The Odds, Not The Bookmakers
According to Betfair, during peak hours they ve matched over 12,000 bets per minute. This represents a significant marketplace that will see very large sums of money changing hands every day. On betting exchanges such as Betfair, the players themselves are in complete control of the odds and the prices not the bookmakers.
As far as comparing it to the betting systems of yesteryear, it is about as far removed as you could get.
First of all, as there are no bookmakers, there are no longer any hefty margins either. With a betting exchange, a punter always wins, not a bookmaker. Odds are never manipulated to protect profit margin and the only cost for using the system is a low commission that is applied to net winnings. Such betting exchanges typically offer punters much higher odds than traditional bookmakers, and that s why I always recommend comparing their odds against that of the high street bookie.
How Does This System Work?
Maybe the most unique and attractive aspect to betting exchanges is the fact that its the punters who get to choose the odds, not the bookie. Players can enjoy the flexibility of offering their own odds within a betting system that gives the punter almost complete control and the ability to dictate a certain event on their own terms.
Once this has been done, its then down to other interested punters to actually provide a counter offer to these odds. If the originally player who placed the bet likes your counter offer they accept and the bet is matched. Either way, one player or another is going to win and make money.
Why The Punter Always Wins
This approach to betting of course means that a punter always wins. This represents extremely high liquidity across a huge range of markets, and many betting exchanges attract both very high rollers and small time punters as well, with small minimum bets available to cater for the latter.
From my own experience, I have found the arena of betting exchanges quite exciting and it s very hard to beat the pure excitement of what Betfair calls an in play . In play betting allows players to use their own analysis to try to predict results of an event even after the event has begun. This means that even right into the middle of any event, two people can immediately place a bet regarding the outcome of that event.
The excitement of such a betting system is that two players can pit their wits against each other regarding their ability to do real time analysis in predicting what they believe will be the outcome. This represents high energy, fast moving action where the odds change by the second.
In fact, Betfair and their betting exchange counterparts have presented the public with a new and innovative approach to placing bets, that of course removes the middleman; otherwise know as the bookmaker.
Which Came First?
Most people would think that the bookmaker is the image of traditional betting, well maybe not. Betting exchanges offer people a method to directly place bets against each other, very much like nobility used to do during the earliest days of one on one thoroughbred racing, so maybe it is the exchange that is closer to tradition?
Whatever your thoughts or beliefs, exchanges have forced the bookmaker to look at its business model, and in time this will benefit one set of important individuals, the ones who provide the money, the punter.
Cliff Thurston is the CEO of Grosvenor Racing Club, a successful horse racing tipster service. For more information, please visit: http://www.grosvenor-racing-club.co.uk
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