Betfair s Free Sport Betting Business Model

De CidesaWiki

Revisión de 09:54 18 ago 2020

I've been using Betfair for many years now however it is only recently I've wondered just how much performs this company actually make? This question 's what has compelled me to write this short article. I will not get copies of their accounts from companies house, the content will likely be all conjecture according to what I've picked up while using the site over time.

What has allowed me to ponder this question is the transparency in the Betfair site. If you consider traditional bookies like WilliamHill, Ladbrokes or Betfred, everything you don't know on any particular sporting event is exactly what has become bet as a whole and also on what particular outcome these bets were placed.

Take a regular Friday afternoon race meeting at say Ascot. It's the 2.30 and 5 horses are racing; the punters are logging on one of many traditional bookmakers websites and backing various horses. The outcome is repeat the second favourite winning, we've got no clue whether people were backing the outsider or sboarena favourite, the amount was bet, and what sort of profit the bookmaker made.

Now look at 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 for the standard horse race. Now we understand that Betfair take a commission on all winnings, as well as for every bet exchanged there is a winner, so they're taking their 5% no matter the result - about A�10,000 in this instance.

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

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

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

I admit to using 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 concept of what their attorney's fees, IT costs etc figure to. What I do see is unlike traditional bookmakers the results from a sporting event has no bearing on their revenue.

To this end their main aim must be to just recruit as many customers as you can, which poses the question; with the numerous online bookies out there offering free introductory bets all the way to along with more than A�100, then how come Betfair only offer A�30. That is the topic of my next article.