Betfair s Free Sport Betting Business Model

I've been using Betfair for decades now however it is only recently I've wondered simply how much creates this change company make? This question is what has compelled me to publish this informative article. I will not be getting copies with their accounts from companies house, the content will probably be all conjecture depending on what I've acquired by using the web page over time.

What has allowed me to ponder this question could be the transparency in the Betfair site. If you consider traditional bookies like WilliamHill, Ladbrokes or Betfred, whatever you have no idea on any particular sporting event is what has become bet in whole and also on what particular outcome these bets were placed.

Take an everyday Friday afternoon race meeting at say Ascot. It's the 2.30 and 5 horses are racing; the punters are logging on one of the traditional bookmakers websites and backing various horses. The outcome is say the second favourite winning, we have no idea whether everyone was backing the outsider or favourite, simply how much was bet, and what are the profit the bookmaker made.

Now think about the same race with Betfair. The total amount exchanged with the race is given towards 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 for every bet exchanged there's a winner, so they're taking their 5% no matter what result - about A�10,000 in cases like this.

So now for any quick little 'back of fag packet' maths. Approximately 40 races each day generating A�10,000 are all A�400,000 a day seven days every week, that's 2.8 million pounds weekly. Throw inside bigger meetings which rounds up to say 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, consider the average and workout 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 thousand pounds per week in revenue.

Bear in your mind that you could (and people do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, as well as gaming. I'm starting to arrived at in conclusion that they must be attracting weekly revenue inside millions, and sbobet when it's only A�3 million a week, that's over 150 million annually.

I admit to having 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 concept of what their legal fees, IT costs etc figure to. What I do see is 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 numerous customers as you possibly can, which poses the question; while using numerous online bookies out there offering free introductory bets as high as along with excess of A�100, then so why do Betfair offer only A�30. That may be the topic of my next article.