Difference between revisions of "Betfair s Free Sport Betting Business Model"

Latest revision as of 12:45, 17 November 2020

I've been using Betfair for a long time now but it's only recently I've wondered just how much does this company can certainly make? This question 's what has compelled me to create this article. I will not be getting copies with their accounts from companies house, the content will be all conjecture determined by what I've acquired from using the site through the years.

What has allowed me to ponder this question could be the transparency in the Betfair site. If you consider traditional bookies like WilliamHill, Ladbrokes or Betfred, that which you do not know on any particular sporting event is the thing that has become bet altogether and on what particular outcome these bets were placed.

Take an everyday Friday afternoon race meeting at say Ascot. It's the 2.30 and 5 horses are racing; the punters are logging to one of several traditional bookmakers websites and backing various horses. The outcome is say the second favourite winning, we now have no clue whether people were backing the outsider or favourite, just how much was bet, and what type of profit the bookmaker made.

Now take into account the same race with Betfair. The total amount exchanged to the race is given on top of the page, this is typically about A�200,000 for a standard horse race. Now we realize that Betfair take a commission on all winnings, and for every bet exchanged there is a winner, so they're taking their 5% whatever the result - about A�10,000 in this case.

So now for the quick little 'back of fag packet' maths. Approximately 40 races every day generating A�10,000 each is A�400,000 each day 7 days weekly, that's 2.8 million pounds per week. Throw inside the bigger meetings understanding that rounds it to convey 3 million, 5% of which is A�150,000.

Now consider the Premiership football season. At least 12 games per week generating between A�200,000 and sbobet a million pounds in exchanged bets, go ahead and take average and workout the 5% commission knowning that's another A�350,000. On top of this there's the lower league and foreign games that must generate another A�100,000 in commission so we're up to Half a million pounds per week in revenue.

Bear planned that you could (and the ones do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, not forgetting gaming. I'm beginning arrived at in conclusion that they must be attracting weekly revenue within the millions, if it's only A�3 million weekly, that's over 150 million annually.

I admit to using no clue if my workings are drastically wrong here, of course, if Betfair actually has annual revenue of A�1million or A�1billion. Neither do I have a sense of what their legal fees, IT costs etc total. What I do see is always that unlike traditional bookmakers the outcome associated with a sporting event doesn't have effect on their revenue.

To this end their main aim must be to just recruit as many customers as you possibly can, which poses the question; while using numerous online bookies around offering free introductory bets up to along with overabundance A�100, then why do Betfair offer only A�30. That is the topic of my next article.