Betfair s Free Sport Betting Business Model

I've been using Betfair for decades now but it is only recently I've wondered the amount does this company can even make? This question is exactly what has compelled me to create this informative article. I will not receive copies with their accounts from companies house, this content will likely be all conjecture depending on what I've found by using your website in the past.

What has allowed me to ponder this question is the transparency in the Betfair site. If you consider traditional bookies like WilliamHill, Ladbrokes or Betfred, whatever you don't know on any particular sporting event 's what has been bet in total and 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 on to among the traditional bookmakers websites and backing the different horses. The outcome is repeat the second favourite winning, we've no clue whether individuals were backing the outsider or favourite, how much was bet, and what sort of profit the bookmaker made.

Now take into account the same race with Betfair. The total amount exchanged to the race emerged on top of the page, this is typically about A�200,000 to get a standard horse race. Now we know that Betfair take a commission on all winnings, and for every bet exchanged you will find there's winner, so they're taking their 5% whatever the result - about A�10,000 in this instance.

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

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

Bear planned that one could (and people do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, not to mention gaming. I'm beginning to arrive at the final outcome that they must be attracting weekly revenue inside millions, and if it's only A�3 million a week, that's over 150 million 12 months.

I admit to having no clue if my workings are drastically wrong here, and when Betfair actually has annual revenue of A�1million or A�1billion. Neither do I have a concept of what their hips, IT costs etc figure to. What I do see is that unlike traditional bookmakers the result of the sporting event has no relating their revenue.

To this end their main aim will be to just recruit as numerous customers as you can, which poses the question; using the numerous online bookies available offering free introductory bets of up to and in way over A�100, then why do Betfair only offer A�30. That is the topic of my next article.