Imagine if you could leave out the bookie, set your own odds, and wager against other bettors at lower costs. After having betting exchanges explained in my guide, you’ll find that plenty of sites provide such a service and more.
These betting platforms cut out the middleman—the sportsbook in this case—leaving bettors to wager against each other on their terms. It’s the perfect opportunity if you want to be in more control of your betting, and cost-effectively too. So join me as I go through betting exchange features, pros/cons, and how to use them in your favor.
So, what are betting exchanges? Simply put, these are platforms where exchange betting takes place. Exchange betting is when you wager directly against other punters instead of the sportsbook and at much lower fees. Why? Betting exchanges don’t have to pay a team of traders to set odds. So, with the middleman out of the equation, the overhead costs dip, letting you pay a few cents per dollar as a winner punter.
At betting exchanges, you get to call the shots by setting your own odds. More often than not, I find these odds to be quite generous than what conventional bookies put on the table, resulting in better payouts when your bets hit.
How do betting exchanges work? This question is best explained by outlining the main characteristics of a betting exchange. I like to call betting exchanges the “eBay of betting”. It’s a willing buyer, willing seller kind of scenario where punters connect. You can assume two roles on the platform—a back bettor and a lay bettor, as explained below.
A back bettor wagers on a specific outcome happening. For instance, you bet on a horse to win a race. You'll agree this pretty much sounds like betting on fixed odds meaning that’s what happens at a regular sportsbook. The only notable difference here is you set the odds.
That’s where the betting exchanges explained earlier come in to connect you with a willing lay bettor happy to wager against the odds you set. The winner wins money from the opposing player minus the betting exchange’s cut. Here’s an example below:
| Both teams to score | ||
| Matched - $2,326 | Back | Lay |
| Yes | 2.06 - $213 | 2.12 - $232 |
| No | 1.9 - $234 | 1.95 - $236 |
On the contrary, the lay bettor assumes the role of the sportsbook and does precisely the opposite of what a back bettor does. This lay punter bets that whatever the back bettor predicted won't happen. Like back bettors, lay bettors also create their own odds.
| Over/Under 1.5 Goals | ||
| Matched - $14 | Back | Lay |
| Under 1.5 Goals | 4.5 - $85 | 4.8 - $43 |
| Over 1.5 Goals | 1.26 - $480 | 1.28 - $112 |
Betting exchanges explained in this article might run a cheaper operation than a sportsbook but it’s certainly not a charity platform. They make their money by taking a commission of your profits, ranging from 2-8% depending on the site. The best sites have much lower rates than the 5-10% most bookies charge.
You can’t fully answer the question, what are betting exchanges without addressing the pros and cons involved.
Anytime we have betting exchanges explained, we're reminded of how different they are from conventional sportsbooks. Instead of punters betting against the bookie, they wager against each other at betting exchanges. Another difference is sportsbooks are responsible for setting odds letting punters wager on both sides of the event. In fact, that’s how bookmakers make their profit by taking the money you lose from wagers.
As I mentioned earlier in my betting guide, these exchanges make money by taking a commission of your profits. With betting exchanges, punters set the odds giving users a higher chance to profit. Lastly, you usually say goodbye to bonuses and cashouts with betting exchanges. Those are perks only enjoyed at sportsbooks.
If you decide to join a betting exchange, you might as well make the most of the opportunity, otherwise what’s the point? You may not necessarily need to learn how to hedge a bet but you can use these tips to place more strategic bets.
Instead of racking your brain trying to establish what betting exchanges are, visit SportsGambler first. It has all the information you need on betting exchanges, things like in play betting explained, and other sports betting disciplines for value wagering.
Before you decide to back or lay on a betting exchange, verify if the odds for the chosen market are favorable. Check if you're dealing with value odds from a statistics point of view by considering past results for the teams.
Avoid placing high stakes early on. To enjoy betting at an exchange in the long run, use a fixed stake that increases or decreases depending on your bankroll.
Before accepting any wager on betting exchanges, study the sport, leagues, players, teams, and stats. Betting against other players isn’t a pass to place reckless wagers.
After understanding the concept of betting exchanges explained, I was sold on the idea of being in more control of my betting. Instead of leaving my fate in the hands of the bookie, I can negotiate better odds with fellow punters in a less-threatening environment. Yes, betting exchanges have their downsides like liquidity issues in less popular events.
But ultimately, you have a chance at gambling with better odds and that equates to value betting. Just be sure to treat your betting exchange experience with the same diligence you would at a sportsbook. Do your research and continue checking SportsGambler guides for handy guides.
It depends on where you are. Betting exchanges are licensed, just like sportsbooks, and gambling laws vary between countries.
You totally can if the betting exchange allows it, and I'm happy to say most do. In fact, in-play bets make gambling at betting exchanges more entertaining. That's because the odds and stakes constantly shift depending on what’s happening in the event.
The beauty of betting exchanges is there are usually no limits to the amount you can bet or win, making them a haven for high rollers. It’s a different scenario from a sportsbook that puts a cap on the maximum bets and winnings a punter can walk away with to avoid going bankrupt.
The one you pick is really a matter of preference because both have their pros and cons. Betting exchanges offer better odds, lower fees, and limitless bets. Sportsbooks impress with generous welcome offers and cashout features not available at betting exchanges.
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