What Is A Betting Market
A betting exchange is a marketplace for customers to bet on the outcome of discrete events.[1] Betting exchanges offer the same opportunities to bet as a bookmaker with a few differences. Gamblers can buy (also known as 'back') and sell (also known as 'lay') the outcome, and they can trade in real-time throughout the event, either to cut their losses or lock in profit. Bookmaker operators generate revenue by offering less efficient odds. Betting exchanges normally generate revenue by charging a small commission on winning bets.
History[edit]
The first betting exchanges were Matchbook, flutter.com and Betfair. Flutter and Betfair merged in 2001 with Betfair chosen as the primary betting exchange.[2] The flutter.com site ceased operations in January 2002.[3] Since then Betfair has maintained a leading position in the betting exchange market. BETDAQ (which also trades as the 'Ladbrokes Exchange') is believed to be the second largest betting exchange and it had an estimated 7% share of the betting exchange market in 2013.[4] BETDAQ is owned by Ladbrokes plc (now Ladbrokes Coral) following the acquisition in February 2013.[5]
A betting market can be thought of as a category for a specific type of bet. For example, if you are looking at a Premier League football match, you are going to be able to find a wide selection of markets which are available for just that one fixture. Those will range. – The US legal sports betting market has been active since The U.S. Saw major growth in legal sports betting in 2020. Other markets such as the UK, Australia, and Mexico have long-established regulated sports betting. The US holds up against these long-standing markets with only half the country having legalized sportsbooks. Sports Betting Market is set to expand at a CAGR of 11% during the forecast period 2019-2027. TMR offers a full and customized report of sports betting market that includes latest trends, market.
Exchanges and traditional bookmakers compared[edit]
Most exchanges make their money by charging a commission which is calculated as a percentage of net winnings for each customer on each event, or market. Gamblers whose betting activities have been restricted by bookmakers (normally for winning too much money) are able to place bets of unrestricted size as long as one or more opposing customers are willing to match their bets. The odds available on a betting exchange are usually better than those offered by bookmakers, in spite of the commission charged, because there are smaller overrounds.
In spite of these advantages, exchanges currently have some limitations. Because exchanges seek to concentrate their liquidity in as few markets as possible, they are not currently suited to unrestricted multiple parlay betting. Betfair does offer accumulators but these are limited in number and type: users cannot determine the outcomes contained in accumulators themselves. Some exchanges such as BETDAQ also offer multiples but the exchanges act in the same manner as traditional bookmakers in doing so (i.e. they themselves and not a customer act as the layer of such bets). Exchanges also tend to restrict the odds that can be offered to between 1.01 (1 to 100) and 1000 (999 to 1).
Backing and laying[edit]
Traditionally betting has occurred between a customer and a bookmaker where the customer 'backs' (bets that an outcome will occur) and the bookmaker 'lays' (bets that the outcome will not occur). Betting exchanges offer the opportunity for anyone to both back and lay.
For example, if someone thinks that Team A will win the competition, they may support that choice. The bookmaker offering this bet to the player will choose this option. Both sides will agree on the sponsor's bet and odds. If the team loses, the layer/bookmaker retains the patron's bet. If the team wins, the layer will pay the sponsor the winnings according to the agreed odds. Since every bet you make requires a patron and a layer, and the exchange of bets is not a participant in the bets made on it, any exchange of bets requires both patrons and layers.
In-play betting[edit]
Exchanges allow bets to be made in-running or in-play (i.e. to make bets while a race or match is in progress). This feature is generally restricted to the most popular events for which widespread, live television coverage is available.
Whereas non-in-play bets are entered into the system immediately after being placed by the customer, when betting in-play a time delay might be instituted so as to make it somewhat more difficult for unscrupulous customers to accept offers for bets that for whatever reason have suddenly become highly favorable. Markets may also be actively managed by the operator. In this case, betting will be briefly halted after each occurrence likely to cause a substantial change in the odds (for example, in association football matches goals, penalty kicks and sendings off would warrant such suspensions), so that unmatched bets can be cancelled.
Traders and arbitrageurs[edit]
Arbitrageurs (colloquially 'arbers') attempt to simultaneously bet on all possible outcomes to make a guaranteed profit. A trader operates similarly to an arbitrageur but is willing to take on extra risk and bet on events where no immediate profit is possible. A trader hopes to make a profit by closing out the bet at a later stage at more favorable odds. Closing out a bet for profit involves collecting more money by laying than is paid out when the outcome is backed back. If the event does not occur then no money is lost, alternatively if a trader is able to lay a higher stake at shorter odds than his back stake then he can theoretically guarantee the same amount of profit regardless of the outcome. On the other hand, if the odds move against the trader he might elect to close out the bet so as to minimise his loss. Trading can be done either before the start of an event or while the event is in progress if in-play betting is offered. Compared to trading before the event commences, trading in-play usually involves both greater risk and also the potential to make more money.
Traders can make money by betting exclusively with betting exchanges or bookmakers, or by combining the two. The trader could lay at a low amount on a betting exchange and then back at a higher price with a bookie or another exchange. This must be done simultaneously to guarantee a profit or else the opportunity could quickly cease to exist with liquid markets quickly correcting prices and bookies trying to avoid being arbitraged.
Most exchanges post the book percentages (colloquially known as the overround or 'vig') prominently for each market. These percentages are essentially the cumulative implied percentage chances of the odds on offer for each selection and for a single winner market will usually add up to more than 100% for all back selections (but only marginally over in a competitive market), and under 100% for the lay selections. This ensures that simultaneously backing or laying all selections in a market will not normally guarantee a profit. Occasionally though (especially in circumstances where odds are prone to change rapidly) exceptions will arise where offers to back or lay all selections will be made that if simultaneously and cumulatively accepted at exactly the right stakes would permit an arbitrageur to guarantee a profit. However, such phenomena tend to correct themselves very quickly and exchanges generally try to dissuade customers from attempting to take advantage of such circumstances.
Furthermore, for a trader or arbitrageur to combine different exchanges and/or bookmakers for a profit requires a substantial price differential if a profit is in fact to be made once the exchange's commission is taken into account. Even between exchanges, such large price differences are rare, brief and usually involve relatively small stakes. Fortunately for traders, almost all betting exchanges charge commission on net winnings only and charge no commission at all in the event of a net loss. This suits the trader's high turnover, low profit strategy provided he bets exclusively with a single exchange.
Unless a trader is willing to accept the risks inherent with in-play trading, the profit or loss for a trader will typically be no more than 10% of the total amount of his combined back and lay stakes in any particular market, so to make meaningful amounts of money a trader needs to commit a relatively large amount of capital. The trader therefore runs the risk of having a large unwanted bet on an event if he is unable to close his position before the event starts (e.g. if there are technical problems with his Internet connection or with the exchange).
Traders and arbitrageurs are often credited with 'seeding' markets with more competitive prices than would be present without them. However, Betfair's imposition of a premium charge in September 2008 was seen by some as being directed at the most skilled traders, whom it is speculated trade for a loss very infrequently and thus would otherwise pay little in the way of commission. In response, rival exchanges have pledged not to introduce similar charges, perhaps in hopes of enticing traders to move their business (and capital) elsewhere.
Controversy[edit]
The fact gamblers can lay outcomes on the exchanges has resulted in criticism from traditional bookmakers including the UK's 'Big Three' - Gala Coral Group, Ladbrokes and William Hill. These firms argue that granting 'anonymous' punters the ability to bet that an outcome will not happen is causing corruption in sports such as horse racing since it is much easier to ensure a horse will lose a race than to ensure that it will win.
Exchanges counter that, while corruption is possible on any gambling platform, the bookies' arguments are motivated not by concern for the integrity of sport but by commercial interests. Exchanges also assert they are well aware of who their customers are and keep a complete record of all betting activity in case of enquiries, whereas high-street bookies take anonymous cash bets. Furthermore, customers can monitor the odds on the exchanges' user-friendly platforms independently. Exchanges and the authorities can be immediately alerted should suspicious betting patterns become apparent. Some exchanges have signed agreements with governing bodies of sport including the Jockey Club, with whom they insist they will co-operate fully if the latter suspects corruption to have taken place. Exchanges have co-operated with police investigations when asked to do so, sometimes leading to arrests.
In February 2013, Ladbrokes (now Ladbrokes Coral) acquired BETDAQ, which is a betting exchange. Of the UK's 'Big Three' only William Hill doesn't own a betting exchange.
See also[edit]
References[edit]
- ^http://news.bbc.co.uk/2/hi/uk_news/7109494.stm
- ^Goodley, By Simon. 'Betfair buy spells the final flutter'. Telegraph.co.uk. Retrieved 2017-06-19.
- ^Wood, Greg (2002-01-16). 'Flutter's departure leaves bitter taste'. The Guardian. ISSN0261-3077. Retrieved 2017-06-17.
- ^'Ladbrokes acquires Betdaq betting exchange for €30m'. 2013-01-25. Retrieved 2017-06-17.
- ^Percival, Geoff. 'Ladbrokes acquires BETDAQ betting exchange for €30m'. The Irish Examiner. Retrieved 2013-01-25.
In our earlier beginner’s betting guides, we focused on what mindset is required to win at sports betting, and how finding value in your picks is the key to be profitable from placing bets. In this guide we cover how certain betting markets have better odds than others, and why it is better to specialise in some of the basic and traditional markets on offer.
With all these things shaping up nicely in your head, you are surely wondering what you should bet on and this too is a concept to be carefully considered. Most bookmakers will offer dozens of betting markets, especially when for big matches and major European football leagues, but one must be careful in the choice of bets they make.
Of course, not every bettor can be an expert in the same sport but the fact is that most European bettors who are successful bet either football or horse races, and these are two very profitable sports to bet. Choosing the right market to bet within those sports, however, is a whole other story.
What Markets Should I Choose?
There is a number of betting markets offered in football betting, including the likes of double chance and both teams to score, but the fact is most successful bettors bet on straight win, goal line or Asian handicaps as these three markets are believed to be most easy to take advantage of.
Straight win betting is pretty self-explanatory. The bettor gets three options, betting on home or away win or a draw, winning the bet if their choice turns out to be right. The big mistake bettors often make is betting the favorites at very low odds and this is simply not a strategy that will show dividends over time. If you plan to bet winners, you will want to find games where the odds are relatively even but you have information that suggests one team as the favorite.
Over/Under 2.5 Goals is another commonly bet market among the professional bettors as it is a market where long-term statistics of the teams and the league can play a significant factor, allowing for much statistical analysis to be done and plenty of edge to be had, especially if you are patient enough to analyze some of the smaller leagues.
The Both Teams To Score market is another popular market among some professional bettors and while it may not be very profitable at all in the major leagues where the stats are broken down very well by the bookies, the odds may be quite favorable for the bettors in some lesser leagues matches. For instance, scouring Dutch, Belgian or South American leagues for solid both teams to score opportunities has shown very profitable for tons of professionals.
The Asian Markets
Betting Market Trump Biden 2020
In recent years most of the online bookies have introduced the Asian Handicap betting, which is also one of the most commonly bet markets among the professional bettors today. Asian Handicap is the type of betting where teams are brought closer to level by adding a number of goals to the final score before the match has even started. For instance, if the champions are playing the team set for relegation, the other team might “start” the match 2 goals ahead for the purposes of this bet.
The most basic Asian Handicap is 0. When there is a 0 Asian Handicap in play, your bets will win if your choice wins, they will lose if your team loses and your bets will be refunded when the match finishes in a draw. In this scenario, the drawn matches are completely left out and you can simply bet if a team will win or not.
Further Asian Handicap bets include +0.25 where you lose half of your stake if the match is a draw and you lose your entire stake if your pick loses, +0.50 where you only win if your pick wins and you lose in all other instances, +0.75 where you win the full amount if your team wins by 2 goals or more and win half the amount if they win by 1 etc.
Asian Handicap betting allows players to bet in a much more versatile way, predicting the outcome of the match with more precision while also protecting themselves in a way against some of the negative outcomes.
The real reason why so many professionals like to bet Asian Handicaps is because the bookies tend to pay out higher on these bets, making the odds better and making the bookie easier to beat. Basically in many cases it will be more profitable to bet Home Team +0 than Home Team on the 1×2 market, even though it is actually the absolute same bet.
The lower margins that bookies charge on Asian Handicap markets make these markets very popular among the serious bettors, while most casual punters will still place their money with the market they know better, thus losing out on the edge just by not being curious enough.
Conclusion : Choose Your Market Carefully
What Is A Betting Marketing
With so many bookies offering the different markets out there, I have seen instances where the same bet is offered in two different ways at two different bookies with quite different odds. This is why you as a professional bettor will need to train a keen eye and learn how to recognize such situations and capitalize on them the most.
Betting Market Election 2020
It is crucial to keep in mind that picking the right market to bet and staying focused on that market, regularly doing research and improving your understanding of the market is what will bring you the most profits in the long run. As with all other things, it is important to specialize and become a master of your market, so you are able to utilize every slight edge that appears within it.