Betfair s Free Sport Betting Business Model

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I've been using Betfair for a long time now but it is only recently I've wondered simply how much performs this company can certainly make? This question is what has compelled me to write down this short article. I will not get copies of the accounts from companies house, this content will probably be all conjecture determined by what I've grabbed by using your website over the years.

What has allowed me to ponder this question will be the transparency inside the Betfair site. If you consider traditional bookies including WilliamHill, Ladbrokes or Betfred, what you have no idea on any particular sporting event is what has been bet in total 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 onto among the traditional bookmakers websites and backing the many horses. The outcome is repeat the second favourite winning, we've got not a clue whether individuals were backing the outsider or favourite, simply how much was bet, and what type of profit the bookmaker made.

Now look at the same race with Betfair. The total amount exchanged to the race is given at the top of the page, this is typically about A�200,000 to get a standard horse race. Now we understand that Betfair please take a commission on all winnings, and 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 bit of 'back of fag packet' maths. Approximately 40 races per day generating A�10,000 are all A�400,000 a day 7 days a week, that's 2.8 million pounds weekly. Throw within the bigger meetings understanding that rounds it down to express 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 plus a million pounds in exchanged bets, consider the average and sboarena figure out the 5% commission knowning 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 a million pounds per week in revenue.

Bear at heart that you could (and individuals do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, let alone gaming. I'm starting to visit concluding that they must be pulling in weekly revenue inside millions, of course, if it's only A�3 million every week, that's over 150 million annually.

I admit to getting no 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 perception of what their attorney's fees, IT costs etc figure to. What I do see is that unlike traditional bookmakers the result associated with a sporting event does not have any touching on their revenue.

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