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

Revision as of 07:25, 25 August 2020

I've been using Betfair for years now but it is only recently I've wondered simply how much creates this change company actually make? This question is the thing that has compelled me to publish this informative article. I will not receive copies with their accounts from companies house, this article will be all conjecture based on what I've acquired by using the site through the years.

What has allowed me to ponder this question is the transparency within the Betfair site. If you consider traditional bookies like WilliamHill, Ladbrokes or Betfred, that which you don't know on any particular sporting event is what has become bet altogether and also on what particular outcome these bets were placed.

Take a consistent Friday afternoon race meeting at say Ascot. It's the 2.30 and 5 horses are racing; the punters are logging onto one of the traditional bookmakers websites and backing various horses. The outcome is the second favourite winning, we've not a clue whether people were backing the outsider or favourite, just how much was bet, and what type of profit the bookmaker made.

Now look at the same race with Betfair. The total amount exchanged with the race is offered on top of the page, that is typically about A�200,000 for sboarena any standard horse race. Now we know that Betfair please take a commission on all winnings, and then for every bet exchanged there's a winner, so they're taking their 5% whatever the result - about A�10,000 in this case.

So now for any quick bit of 'back of fag packet' maths. Approximately 40 races every day generating A�10,000 are all A�400,000 each day 1 week per week, that's 2.8 million pounds weekly. Throw within the bigger meetings and that rounds it to say 3 million, 5% of 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, go ahead and take average and workout the 5% commission which'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 at heart that you could (the ones do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, let alone gaming. I'm needs to come to concluding that they must be pulling in weekly revenue inside millions, and when it's only A�3 million every week, that's over 150 million per year.

I admit to having not a clue if my workings are drastically wrong here, and if Betfair actually has annual revenue of A�1million or A�1billion. Neither do I have a concept of what their hips, IT costs etc total. What I do see is that unlike traditional bookmakers the results from a sporting event doesn't have relating their revenue.

To this end their main aim will be to just recruit as many customers as you can, which poses the question; with all the numerous online bookies around offering free introductory bets as high as and in more than A�100, then why do Betfair only offer A�30. That may be the topic of my next article.