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

Revision as of 11:46, 29 July 2020

I've been using Betfair for many years now but it's only recently I've wondered simply how much creates this change company can certainly make? This question is what has compelled me to publish this article. I will not be getting copies of the accounts from companies house, this article is going to be all conjecture depending on what I've found from using the website over the years.

What has allowed me to ponder this question is the transparency in the Betfair site. If you consider traditional bookies like WilliamHill, Ladbrokes or Betfred, that which you have no idea of on any particular sporting event is what may be bet in total and also on what particular outcome these bets were placed.

Take a normal Friday afternoon race meeting at say Ascot. It's the 2.30 and 5 horses are racing; the punters are logging on to one of several traditional bookmakers websites and backing the various horses. The outcome is repeat the second favourite winning, we've no clue whether individuals were backing the outsider or favourite, just how much was bet, sboarena and what are the assist the bookmaker made.

Now consider the same race with Betfair. The total amount exchanged for your race is offered towards the top of the page, this really is typically about A�200,000 to get a standard horse race. Now we understand that Betfair require a commission on all winnings, as well as for every bet exchanged there exists a winner, so they're taking their 5% no matter the result - about A�10,000 in this instance.

So now for any quick little bit of 'back of fag packet' maths. Approximately 40 races per day generating A�10,000 each is A�400,000 a day one week every week, that's 2.8 million pounds a week. Throw inside bigger meetings knowning that rounds up to say 3 million, 5% which is A�150,000.

Now take into account the Premiership football season. At least 12 games per week generating between A�200,000 as well as a million pounds in exchanged bets, take the average and figure out the 5% commission knowning that's another A�350,000. On top of this there is the lower league and foreign games that has to generate another A�100,000 in commission so we're up to Half a million pounds a week in revenue.

Bear in mind you could (the ones do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, not to mention gaming. I'm beginning arrived at the conclusion that they must be pulling in weekly revenue within the millions, and when it's only A�3 million every week, that's over 150 million per year.

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

To this end their main aim will be to just recruit as numerous customers as possible, which poses the question; while using numerous online bookies out there offering free introductory bets of up to as well as in more than A�100, then exactly why do Betfair just offer A�30. That may be the topic of my next article.