What is a Betting Exchange?
The concept of Betting Exchange eliminates the need for bookmakers. It enables punters to create their own odds and markets and thus increases the chances of winning.
Betting exchange puts the users in focus. It is a market where users can decide their bets and act as bookmakers themselves. This means that punters have the freedom to raise the stakes and also offer odds to someone else, with room for discussion. In simple words, the punters can set odds and bet against each other.
Betting Exchange also allows punters to bet on the outcome of discrete or specific events. Punters also sometimes trade their bets in real-time during an event, to lock in their profits or cut losses. There are, however, very few sportsbooks that offer to trade bets.
Features of a Betting Exchange
Back Betting refers to being in favour of a certain and specific outcome only. For example, if a person bets on India winning a cricket match against England, they will win the bet only if India beats England. They will stand nothing to lose should England beat India.
Lay Betting is the exact opposite of Back Betting. When the punter places a bet for the outcome to not occur or the opposite outcome, it is known as Lay betting. For example, if a punter bets that India will not defeat England, they will only win the bet if England wins or the match ends in a draw. In simple words, Lay Betting means betting on something/someone to lose.
As the name suggests, In-play betting refers to bets made in real-time or in-play. These bets can happen when a match or event is in progress. In-play betting takes place in popular sports like cricket, football, basketball, tennis, and others, that are televised worldwide.
Betting Exchanges FAQs
Are Betting Exchanges legal in India?
Betting exchanges that accept Indian Rupees and which are based outside of India are legal for Indian players.
How does a Betting Exchange make money?
The main source for betting exchanges to make money is by taking a small commission on winnings. The exact amount varies between exchanges, but it is generally between two and five per cent.
What is the difference between Bookmaker and Betting Exchanges?
A bookmaker is traditionally the first place a potential punter seeks to bet. Often a person or an organisation, a bookmaker accepts and pays off bets – from their own money – on sporting and other events based on the odds they provide.
On the other hand, a betting exchange is a free market where users can decide their bets and act as bookmakers themselves.