Betfair s Free Sport Betting Business Model

I've been using Betfair for decades now yet it's only recently I've wondered simply how much does this company actually make? This question is what has compelled me to write down this article. I will not be getting copies with their accounts from companies house, the information will probably be all conjecture depending on what I've picked up while using the site over the years.

What has allowed me to ponder this question will be the transparency inside the Betfair site. If you consider traditional bookies for example WilliamHill, Ladbrokes or Betfred, sbobet whatever you don't know on any particular sporting event is exactly what has become bet altogether 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 onto one of many traditional bookmakers websites and backing various horses. The outcome is the second favourite winning, we now have no clue whether individuals were backing the outsider or favourite, simply how much was bet, and what type of profit the bookmaker made.

Now take into account the same race with Betfair. The total amount exchanged for that race is given at the top of the page, this is typically about A�200,000 for any standard horse race. Now we realize that Betfair have a commission on all winnings, as well as for every bet exchanged there is a winner, so they're taking their 5% no matter what result - about A�10,000 in this instance.

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

Now consider the Premiership football season. At least 12 games per week generating between A�200,000 and a million pounds in exchanged bets, consider the average and work out the 5% commission understanding that's another A�350,000. On top of this you have the lower league and foreign games that have to generate another A�100,000 in commission so we're up to Half one million pounds every week in revenue.

Bear in your mind that you can (the ones do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, not forgetting gaming. I'm starting to visit the final outcome that they must be pulling in weekly revenue in the millions, and if it's only A�3 million per week, that's over 150 million annually.

I admit to presenting no clue if my workings are drastically wrong here, if Betfair actually has annual revenue of A�1million or A�1billion. Neither do I have a concept of what their legal fees, IT costs etc figure to. What I do see is always that unlike traditional bookmakers the end result associated with a sporting event doesn't have relating their revenue.

To this end their main aim will be to just recruit numerous customers as is possible, which poses the question; using the numerous online bookies around offering free introductory bets as high as as well as in overabundance A�100, then why do Betfair just offer A�30. That may be the topic of my next article.