Betfair s Free Sport Betting Business Model

I've been using Betfair for years now yet it's only recently I've wondered just how much performs this company can even make? This question is what has compelled me to write down this article. I will not get copies of these accounts from companies house, this article will probably be all conjecture according to what I've grabbed from using the site over time.

What has allowed me to ponder this question could be the transparency in the Betfair site. If you consider traditional bookies such as WilliamHill, Ladbrokes or Betfred, that which you don't know on any particular sporting event 's what continues to be bet in whole as well as 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 the various horses. The outcome is the second favourite winning, we've no idea whether individuals were backing the outsider or favourite, simply how much was bet, and what type of assist the bookmaker made.

Now look at the same race with Betfair. The total amount exchanged for that race emerges at the top of the page, sboarena this really is typically about A�200,000 for any standard horse race. Now we all know that Betfair have a commission on all winnings, as well as every bet exchanged you will find there's winner, so they're taking their 5% regardless of the result - about A�10,000 in such cases.

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

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

Bear at heart that one could (the ones do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, not forgetting gaming. I'm needs to arrive at concluding that they must be pulling in weekly revenue in the millions, and if it's only A�3 million weekly, that's over 150 million 12 months.

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 solid idea of what their legal fees, IT costs etc total. What I do see is the fact that unlike traditional bookmakers the result of the sporting event doesn't have effect on their revenue.

To this end their main aim must be to just recruit as numerous customers as you can, which poses the question; with the numerous online bookies around offering free introductory bets of up to plus excess of A�100, then so why do Betfair only offer A�30. That could be the topic of my next article.