Betfair s Free Sport Betting Business Model

I've been using Betfair for a long time now but it is only recently I've wondered simply how much can this company actually make? This question is the thing that has compelled me to create this short article. I will not get copies with their accounts from companies house, this article is going to be all conjecture according to what I've found while using the site over time.

What has allowed me to ponder this question is 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 's what has been bet as a whole and so 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 one of several traditional bookmakers websites and backing the various horses. The outcome is the second favourite winning, we've no clue whether everyone was backing the outsider or favourite, how much was bet, and what kind of conserve the bookmaker made.

Now consider the same race with Betfair. The total amount exchanged with the race emerged towards the top of the page, this really is typically about A�200,000 for sboarena any standard horse race. Now we 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% regardless of the result - about A�10,000 in cases like this.

So now for a quick bit of 'back of fag packet' maths. Approximately 40 races a day generating A�10,000 each is A�400,000 every day seven days per week, that's 2.8 million pounds a week. Throw in the bigger meetings and that rounds it up to convey 3 million, 5% which is A�150,000.

Now take into account the Premiership football season. At least 12 games every week generating between A�200,000 along with a million pounds in exchanged bets, make average and exercise the 5% commission and that's another A�350,000. On top of this you have the lower league and foreign games that has to generate another A�100,000 in commission so we're up to Half a thousand pounds weekly in revenue.

Bear planned that you can (the ones do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, let alone gaming. I'm starting to visit the final outcome that they must be getting weekly revenue inside millions, and if it's only A�3 million a week, that's over 150 million per year.

I admit to using not a clue if my workings are drastically wrong here, and if Betfair actually has annual revenue of A�1million or A�1billion. Neither do I have a sense of what their hips, IT costs etc add up to. What I do see is the fact that unlike traditional bookmakers the result associated with a sporting event has no effect on their revenue.

To this end their main aim is always to just recruit as numerous customers as you possibly can, which poses the question; while using numerous online bookies on the market offering free introductory bets as high as along with overabundance A�100, then exactly why do Betfair offer only A�30. That could be the topic of my next article.