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 can this company can certainly make? This question 's what has compelled me to create this information. I will not get copies of the accounts from companies house, this content will likely be all conjecture determined by what I've found from using your website in the past.

What has allowed me to ponder this question could be the transparency within the Betfair site. If you consider traditional bookies such as WilliamHill, Ladbrokes or Betfred, what you do not know on any particular sporting event 's what has become bet altogether 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 various horses. The outcome is say the second favourite winning, we've no clue whether everyone was 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 for that race is offered on top of the page, that is typically about A�200,000 to get a standard horse race. Now we know that Betfair please take a commission on all winnings, as well as every bet exchanged you will find there's winner, so they're taking their 5% no matter the result - about A�10,000 in this instance.

So now to get a quick little 'back of fag packet' maths. Approximately 40 races every day generating A�10,000 each are A�400,000 per day 7 days a week, sboarena that's 2.8 million pounds every week. Throw inside the bigger meetings knowning that rounds it to say 3 million, 5% which is A�150,000.

Now think about the Premiership football season. At least 12 games weekly generating between A�200,000 along with a million pounds in exchanged bets, go ahead and take average and work out the 5% commission understanding that's another A�350,000. On top of this there is 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 planned you could (the ones 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 pulling in weekly revenue within the millions, of course, if it's only A�3 million per week, that's over 150 million per year.

I admit to using no clue 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 sense of what their hips, IT costs etc figure to. What I do see is the fact that unlike traditional bookmakers the results of the sporting event has no relating their revenue.

To this end their main aim will be to just recruit numerous customers as you possibly can, which poses the question; using the numerous online bookies on the market offering free introductory bets all the way to as well as in excess of A�100, then how come Betfair just offer A�30. That will be the topic of my next article.