Betfair s Free Sport Betting Business Model

I've been using Betfair for years now however it is only recently I've wondered just how much can this company actually make? This question is what has compelled me to write down this informative article. I will not be getting copies of their accounts from companies house, sbobet this article will probably be all conjecture according to what I've grabbed while using the website over the years.

What has allowed me to ponder this question may be the transparency inside the Betfair site. If you consider traditional bookies for example WilliamHill, Ladbrokes or Betfred, what you don't know on any particular sporting event is exactly what has been bet in whole as well as 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 among the traditional bookmakers websites and backing various horses. The outcome is the second favourite winning, we've got no clue whether people were 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 for that race emerges at the top of the page, that is typically about A�200,000 for any standard horse race. Now we all know that Betfair require a commission on all winnings, as well as for every bet exchanged you will find there's winner, so they're taking their 5% whatever the result - about A�10,000 in cases like this.

So now to get a quick little 'back of fag packet' maths. Approximately 40 races each day generating A�10,000 each is A�400,000 a day seven days weekly, that's 2.8 million pounds every week. Throw in the bigger meetings understanding that rounds it down to say 3 million, 5% that is A�150,000.

Now look at the Premiership football season. At least 12 games weekly generating between A�200,000 as well as a million pounds in exchanged bets, take the average and exercise the 5% commission which'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 weekly in revenue.

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

I admit to having no idea 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 perception of what their attorney's fees, IT costs etc amount to. What I do see is always that unlike traditional bookmakers the outcome from a sporting event doesn't have touching on their revenue.

To this end their main aim must be to just recruit numerous customers as you possibly can, which poses the question; with the numerous online bookies out there offering free introductory bets up to as well as in more than A�100, then why do Betfair just offer A�30. That is the topic of my next article.