Betfair s Free Sport Betting Business Model

I've been using Betfair for a long time now but it's only recently I've wondered how much creates this change company make? This question is the thing that has compelled me to write down this short article. I will not be getting copies of these accounts from companies house, the content will be all conjecture based on what I've found by using your website through the years.

What has allowed me to ponder this question will be the transparency inside Betfair site. If you consider traditional bookies for example WilliamHill, Ladbrokes or Betfred, everything you don't know on any particular sporting event 's what may be bet in whole as well as on what particular outcome these bets were placed.

Take a regular Friday afternoon race meeting at say Ascot. It's the 2.30 and 5 horses are racing; the punters are logging on to among the traditional bookmakers websites and backing the different horses. The outcome is the second favourite winning, we now have no clue whether individuals were backing the outsider or favourite, just how much was bet, and sbobet what kind of assist the bookmaker made.

Now consider the same race with Betfair. The total amount exchanged for that race is given towards the top of the page, that is typically about A�200,000 for any standard horse race. Now we realize that Betfair please take a commission on all winnings, as well as for every bet exchanged you will find there's winner, so they're taking their 5% no matter what result - about A�10,000 in cases like this.

So now for the quick amount of 'back of fag packet' maths. Approximately 40 races each day generating A�10,000 each are A�400,000 every day 1 week every week, that's 2.8 million pounds every week. Throw inside bigger meetings and that rounds up to express 3 million, 5% that is A�150,000.

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

Bear in your mind that you could (and people do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, not forgetting gaming. I'm starting to arrive at the conclusion that they must be getting weekly revenue inside millions, if it's only A�3 million weekly, that's over 150 million a year.

I admit to using no idea if my workings are drastically wrong here, if Betfair actually has annual revenue of A�1million or A�1billion. Neither do I have a concept of what their legal fees, IT costs etc add up to. What I do see is that unlike traditional bookmakers the outcome of the sporting event doesn't have any touching on their revenue.

To this end their main aim is always to just recruit numerous customers as you possibly can, which poses the question; with the numerous online bookies out there offering free introductory bets as high as along with more than A�100, then why do Betfair just offer A�30. That will be the topic of my next article.