Betfair s Free Sport Betting Business Model

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I've been using Betfair for a long time now yet it's only recently I've wondered simply how much performs this company can certainly make? This question is what has compelled me to publish this informative article. I will not receive copies of the accounts from companies house, the content will be all conjecture depending on what I've picked up from using the web page over the years.

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 have no idea of on any particular sporting event is exactly what has become bet as a whole and on what particular outcome these bets were placed.

Take a consistent 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 the various horses. The outcome is say the second favourite winning, we have no clue whether individuals were backing the outsider or favourite, simply how much was bet, and what kind of conserve the bookmaker made.

Now consider the same race with Betfair. The total amount exchanged to the race is given on top of the page, this is typically about A�200,000 for any standard horse race. Now we all know that Betfair please take a commission on all winnings, and then for every bet exchanged you will find there's winner, so they're taking their 5% no matter what result - about A�10,000 in cases like this.

So now to get a quick amount of 'back of fag packet' maths. Approximately 40 races every day generating A�10,000 each are A�400,000 each day 1 week every week, that's 2.8 million pounds a week. Throw in the bigger meetings which rounds up to express 3 million, 5% of which is A�150,000.

Now take into account the Premiership football season. At least 12 games per week generating between A�200,000 plus a million pounds in exchanged bets, make 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 have to generate another A�100,000 in commission so we're up to Half one million pounds per week in revenue.

Bear planned that you can (and the ones do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, not to mention gaming. I'm beginning to visit in conclusion that they must be attracting weekly revenue within the millions, and if it's only A�3 million a week, that's over 150 million 12 months.

I admit to getting no idea 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 add up to. What I do see is unlike traditional bookmakers the results from a sporting event does not have any relating their revenue.

To this end their main aim will be to just recruit as many customers as you can, which poses the question; while using numerous online bookies available offering free introductory bets all the way to along with way over A�100, sbobet then how come Betfair only offer A�30. That could be the topic of my next article.