Betfair s Free Sport Betting Business Model

I've been using Betfair for years now however it is only recently I've wondered the amount performs this company actually make? This question 's what has compelled me to write this informative article. I will not get copies with their accounts from companies house, the content will likely be all conjecture determined by what I've found from using the website over the years.

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, what you do not know on any particular sporting event is exactly what has been bet altogether and so 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 one of the traditional bookmakers websites and backing the many horses. The outcome is the second favourite winning, we've got no idea whether people were backing the outsider or favourite, just how much was bet, sboarena and what type of profit the bookmaker made.

Now take into account the same race with Betfair. The total amount exchanged for your race emerged on top of the page, this is typically about A�200,000 to get a standard horse race. Now we realize that Betfair please take a commission on all winnings, as well as every bet exchanged there is a winner, so they're taking their 5% whatever the result - about A�10,000 in this case.

So now for the quick little 'back of fag packet' maths. Approximately 40 races each day generating A�10,000 each is A�400,000 a day 1 week weekly, that's 2.8 million pounds a week. Throw in the bigger meetings and that rounds it up to express 3 million, 5% ones is A�150,000.

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

Bear at heart that one could (and the ones do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, not to mention gaming. I'm beginning to come to in conclusion that they must be getting weekly revenue inside millions, if it's only A�3 million a week, that's over 150 million 12 months.

I admit to getting not a clue 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 solid idea of what their attorney's fees, IT costs etc total. What I do see is that unlike traditional bookmakers the results of any sporting event does not have any relating their revenue.

To this end their main aim must be to just recruit numerous customers as is possible, which poses the question; while using numerous online bookies on the market offering free introductory bets all the way to as well as in more than A�100, then so why do Betfair just offer A�30. That will be the topic of my next article.