Betfair s Free Sport Betting Business Model

I've been using Betfair for years now but it is only recently I've wondered how much creates this change company can even make? This question 's what has compelled me to write down this informative article. I will not get copies with their accounts from companies house, the content will likely be all conjecture based on what I've grabbed from using the site in the past.

What has allowed me to ponder this question will be the transparency within the Betfair site. If you consider traditional bookies such as WilliamHill, Ladbrokes or Betfred, everything you have no idea on any particular sporting event is the thing that may be bet altogether as well as on what particular outcome these bets were placed.

Take an everyday Friday afternoon race meeting at say Ascot. It's the 2.30 and 5 horses are racing; the punters are logging to one of the traditional bookmakers websites and backing the different horses. The outcome is the second favourite winning, we have not a clue whether individuals were backing the outsider or favourite, the amount 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 emerged near the top of the page, that is typically about A�200,000 for the standard horse race. Now we know that Betfair take a commission on all winnings, 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 cases like this.

So now to get a quick little 'back of fag packet' maths. Approximately 40 races per day generating A�10,000 each are A�400,000 a day 7 days per week, that's 2.8 million pounds per 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 along with a million pounds in exchanged bets, consider the average and work out the 5% commission understanding that's another A�350,000. On top of this there is 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 in mind you 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 arrive at the conclusion that they must be pulling in weekly revenue within the millions, and when it's only A�3 million per week, that's over 150 million 12 months.

I admit to getting no idea if my workings are drastically wrong here, and sbobet 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 amount to. What I do see is unlike traditional bookmakers the outcome of any sporting event has no relating their revenue.

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