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 just how much can this company can certainly make? This question is exactly what has compelled me to write down this short article. I will not be getting copies of their accounts from companies house, this article will likely be all conjecture according to what I've acquired by using the website in the past.

What has allowed me to ponder this question could be the transparency in the Betfair site. If you consider traditional bookies such as WilliamHill, Ladbrokes or Betfred, that which you have no idea of on any particular sporting event is exactly what may be bet as a whole 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 to one of several traditional bookmakers websites and backing the various horses. The outcome is the second favourite winning, we've not a clue whether individuals were backing the outsider or favourite, just how much was bet, and what kind of profit the bookmaker made.

Now think about the same race with Betfair. The total amount exchanged with the race emerges near the top of the page, this really is typically about A�200,000 for the standard horse race. Now we realize 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% whatever the result - about A�10,000 in this instance.

So now for the quick bit of 'back of fag packet' maths. Approximately 40 races each day generating A�10,000 each are A�400,000 a day seven days every week, that's 2.8 million pounds every week. Throw in the bigger meetings understanding that rounds it up to convey 3 million, 5% ones 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, take the average and figure out the 5% commission understanding that's another A�350,000. On top of this you have the lower league and foreign games that has got to generate another A�100,000 in commission so we're up to Half millions of pounds a week in revenue.

Bear in your mind that one could (and individuals do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, not to mention gaming. I'm beginning come to in conclusion that they must be attracting weekly revenue inside millions, of course, if it's only A�3 million every week, that's over 150 million 12 months.

I admit to getting no idea 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 perception of what their attorney's fees, IT costs etc total. What I do see is always that unlike traditional bookmakers the results from a sporting event has no effect on their revenue.

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