Difference between revisions of "Betfair s Free Sport Betting Business Model"

Revision as of 19:17, 19 July 2020

I've been using Betfair for decades now however it is only recently I've wondered simply how much performs this company make? This question 's what has compelled me to write this article. I will not get copies of their accounts from companies house, the information will be all conjecture based on what I've acquired by using your website through the years.

What has allowed me to ponder this question may be the transparency in the Betfair site. If you consider traditional bookies like WilliamHill, Ladbrokes or Betfred, that which 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 normal Friday afternoon race meeting at say Ascot. It's the 2.30 and 5 horses are racing; the punters are logging to among the traditional bookmakers websites and backing the various horses. The outcome is the second favourite winning, we've not a clue whether people were backing the outsider or favourite, the amount was bet, and sboarena what sort of conserve the bookmaker made.

Now look at the same race with Betfair. The total amount exchanged with the race is offered on top of the page, this is typically about A�200,000 for any standard horse race. Now we realize 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% whatever the result - about A�10,000 in cases like this.

So now for a quick bit of 'back of fag packet' maths. Approximately 40 races a day generating A�10,000 are all A�400,000 each day one week per week, that's 2.8 million pounds a week. Throw within the bigger meetings understanding that rounds it to state 3 million, 5% ones is A�150,000.

Now think about the Premiership football season. At least 12 games a week generating between A�200,000 along with a million pounds in exchanged bets, make 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 per week in revenue.

Bear at heart that you could (and people do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, as well as gaming. I'm beginning to come to concluding that they must be attracting weekly revenue inside the millions, and if it's only A�3 million every week, that's over 150 million a year.

I admit to presenting not a clue if my workings are drastically wrong here, of course, if Betfair actually has annual revenue of A�1million or A�1billion. Neither do I have a sense of what their legal fees, IT costs etc amount to. What I do see is the fact that unlike traditional bookmakers the results of the sporting event has no touching on their revenue.

To this end their main aim must be to just recruit as numerous customers as you can, which poses the question; using the numerous online bookies on the market offering free introductory bets of up to and in more than A�100, then how come Betfair offer only A�30. That may be the topic of my next article.