What is a Betting Exchange?
In addition to the more traditional bookmakers and sportsbooks which people have used for years to place bets on sporting events, a new type of betting institution has become popular in recent years. While betting exchanges are similar to sportsbooks in that they offer the chance to bet on sports, there are some very big differences between the two types of institution, and because of this they appeal to different types of people.
Perhaps the largest difference between sportsbooks and traditional betting exchanges is who controls the bets. In a sportsbook, the odds are set, and bets are placed against, the bookmaker or bookie. However, a betting exchange turns this concept upside down, allowing bettors to bet against each other! This can lead to some very exciting competition, as well as different varieties of bets.
Variety is the next largest difference between sportsbooks and betting exchanges. Sportsbooks traditionally only take bets to win. Betting exchanges offer the chance to bet on losses as well. What does this mean for you? It means more chances to bet and win! For example, let’s imagine that you have no idea who will win the Kentucky Derby. However, you have a very strong feeling that a few horses will not win the race. In a betting exchange, you can place bets for those horses to lose! This allows you to win money without actually betting on a winner, which means much more opportunity.
Setting the Odds
Odds in a traditional sportsbook are set by the bookmaker. This can be a good thing, since it allows the bookmaker to offer attractive bonuses and incentives.
In a betting exchange, the odds are set by the bettors. While this does away with the bonuses and incentives, it also means potentially bigger wins. Keep in mind that a bet will die if nobody takes your odds, so don’t go crazy with outrageously low odds. Keep it reasonable, and you’ll find many willing participants.
Another new idea which betting exchanges offers is the chance to sell your pre-made bets. There are many instances in which this is a great way to profit off your bets, although it’s less exciting.
Betting exchanges also offer a different way to pay. Instead of paying the bookmaker, in a betting exchange you pay a commission on your winnings. This is a very welcome change for some bettors.