Betfair s Free Sport Betting Business Model

I've been using Betfair for many years now however it is only recently I've wondered just how much creates this change company make? This question is exactly what has compelled me to write down this information. I will not receive copies with their accounts from companies house, this content will probably be all conjecture depending on what I've grabbed from using the website over time.

What has allowed me to ponder this question may be the transparency in the Betfair site. If you consider traditional bookies like WilliamHill, Ladbrokes or Betfred, everything you have no idea of on any particular sporting event 's what continues to be bet as a whole and so 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 sboarena backing various horses. The outcome is the second favourite winning, we've got no idea whether individuals were backing the outsider or favourite, the amount was bet, and what are the assist the bookmaker made.

Now think about the same race with Betfair. The total amount exchanged for your race is given towards the top of the page, this can be typically about A�200,000 for a standard horse race. Now we all know that Betfair have a commission on all winnings, and then for every bet exchanged there exists a winner, so they're taking their 5% whatever the result - about A�10,000 in this instance.

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

Now take into account the Premiership football season. At least 12 games a week generating between A�200,000 plus a million pounds in exchanged bets, go ahead and take average and figure out the 5% commission which's another A�350,000. On top of this you have the lower league and foreign games that must generate another A�100,000 in commission so we're up to Half one million pounds weekly in revenue.

Bear in mind that you can (and the ones do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, not forgetting gaming. I'm starting to arrive at the final outcome that they must be getting weekly revenue inside millions, if it's only A�3 million weekly, that's over 150 million 12 months.

I admit to having 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 solid idea of what their attorney's fees, IT costs etc total. What I do see is unlike traditional bookmakers the results of any sporting event does not have any effect on their revenue.

To this end their main aim must be to just recruit as numerous customers as you can, which poses the question; with all the numerous online bookies out there offering free introductory bets all the way to plus overabundance A�100, then exactly why do Betfair just offer A�30. That could be the topic of my next article.