Betfair s Free Sport Betting Business Model

I've been using Betfair for decades now however it is only recently I've wondered simply how much can this company make? This question is exactly what has compelled me to publish this short article. I will not receive copies with their accounts from companies house, this content will likely be all conjecture based on what I've grabbed from using the web page over time.

What has allowed me to ponder this question could be the transparency in the Betfair site. If you consider traditional bookies including WilliamHill, Ladbrokes or Betfred, what you do not know on any particular sporting event is exactly what continues to be bet in whole 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 on to one of many traditional bookmakers websites and backing various horses. The outcome is the second favourite winning, we've got not a clue whether people were backing the outsider or favourite, sbobet just how much was bet, and what are the assist the bookmaker made.

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

So now for any quick amount of 'back of fag packet' maths. Approximately 40 races every day generating A�10,000 are all A�400,000 each day seven days per week, that's 2.8 million pounds every week. Throw in the bigger meetings and that rounds it to say 3 million, 5% ones is A�150,000.

Now think about 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 exercise the 5% commission and that's another A�350,000. On top of this there's the lower league and foreign games that has to generate another A�100,000 in commission so we're up to Half a million pounds weekly in revenue.

Bear planned that you could (and the ones do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, let alone gaming. I'm beginning to arrive at in conclusion that they must be pulling in weekly revenue in the millions, and when it's only A�3 million per week, that's over 150 million annually.

I admit to presenting 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 hips, IT costs etc figure to. What I do see is that unlike traditional bookmakers the result from a sporting event doesn't have touching on their revenue.

To this end their main aim must be to just recruit as many customers as is possible, which poses the question; with the numerous online bookies around offering free introductory bets all the way to and in way over A�100, then how come Betfair just offer A�30. That will be the topic of my next article.