Betfair s Free Sport Betting Business Model

I've been using Betfair for many years now yet it's only recently I've wondered the amount creates this change company can even make? This question 's what has compelled me to publish this information. I will not be getting copies of the accounts from companies house, this content is going to be all conjecture determined by what I've found by using the web page in the past.

What has allowed me to ponder this question could be the transparency within the Betfair site. If you consider traditional bookies for example WilliamHill, Ladbrokes or Betfred, that which you do not know on any particular sporting event is what has become bet as a whole and also 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 one of many traditional bookmakers websites and backing the various horses. The outcome is repeat the second favourite winning, we now have no clue whether people were backing the outsider or favourite, how much was bet, and what kind of assist the bookmaker made.

Now think about the same race with Betfair. The total amount exchanged with the race emerges at the top of the page, that is typically about A�200,000 for any standard horse race. Now we know that Betfair take a commission on all winnings, as well as every bet exchanged there's 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 'back of fag packet' maths. Approximately 40 races each day generating A�10,000 each is A�400,000 every day 1 week per week, that's 2.8 million pounds weekly. Throw inside bigger meetings and that rounds it down to convey 3 million, 5% of which is A�150,000.

Now consider the Premiership football season. At least 12 games a week generating between A�200,000 along with a million pounds in exchanged bets, make average and workout the 5% commission knowning that's another A�350,000. On top of this there's 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 you could (the ones do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, not forgetting gaming. I'm beginning arrive at in conclusion that they must be getting weekly revenue in the millions, if it's only A�3 million per week, that's over 150 million per year.

I admit to getting not a clue if my workings are drastically wrong here, if Betfair actually has annual revenue of A�1million or sbobet A�1billion. Neither do I have a concept of what their hips, IT costs etc add up to. What I do see is that unlike traditional bookmakers the results of the sporting event does not have any 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 on the market offering free introductory bets as high as as well as in excess of A�100, then so why do Betfair only offer A�30. That is the topic of my next article.