Betfair s Free Sport Betting Business Model

I've been using Betfair for many years now but it is only recently I've wondered how much can this company can even make? This question is what has compelled me to write down this information. I will not receive copies of these accounts from companies house, this article will probably be all conjecture depending on what I've picked up from using your website over the years.

What has allowed me to ponder this question could be the transparency inside Betfair site. If you consider traditional bookies including WilliamHill, Ladbrokes or Betfred, what you do not know on any particular sporting event 's what has become bet in total and on what particular outcome these bets were placed.

Take a normal Friday afternoon race meeting at say Ascot. It's the 2.30 and 5 horses are racing; the punters are logging to one of many traditional bookmakers websites and backing various horses. The outcome is repeat the second favourite winning, we've got not a clue whether everyone was 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 with the race is given towards the top of the page, this can be typically about A�200,000 to get a standard horse race. Now we all know that Betfair require a commission on all winnings, sbobet and then for every bet exchanged there exists a winner, so they're taking their 5% no matter the result - about A�10,000 in this instance.

So now for any quick bit of 'back of fag packet' maths. Approximately 40 races each day generating A�10,000 are all A�400,000 per day 1 week per week, that's 2.8 million pounds weekly. Throw inside bigger meetings and that rounds up to state 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 along with a million pounds in exchanged bets, go ahead and take average and workout the 5% commission knowning that'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 weekly in revenue.

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

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 concept of what their legal fees, IT costs etc figure to. What I do see is the fact that unlike traditional bookmakers the end result from a sporting event doesn't have effect on their revenue.

To this end their main aim is always to just recruit numerous customers as you possibly can, which poses the question; using the numerous online bookies available offering free introductory bets as high as and in way over A�100, then so why do Betfair offer only A�30. That could be the topic of my next article.