The Impact of Betting Exchanges on the Sports Betting Market in the UK

The United Kingdom is now the world’s largest regulated market for online gambling. With a total gross revenue of around £14 million, the gambling scene here is unprecedented in size, reach, and revenue. It also helps that the UK Gambling Commission steers the industry towards fair and responsible gambling.

A major component of the growing gambling industry is the sports betting market. It’s also estimated that by 2027, more than 14 million punters will be actively betting on popular UK betting sites. Several factors help boost the growing popularity of the sports betting industry.

In addition to increasing internet penetration and mobile usage, there’s also the growing popularity of betting exchanges. Betting exchange sites are not new, but it’s only in recent years that many punters and sports fans have been discovering them for themselves.  Though betting exchanges operators will not offer typical betting bonuses like regular betting sites where you usually find a list of free bets, cashback and other offers, still  they possess advantages relevant for many bettors.

Photo by Christin Hume on Unsplash

So What Makes a Betting Exchange Different?

Traditional bookmakers and betting exchanges accept sports bets but differ in how these wagers are treated. At betting exchanges you’re betting against other punters. Simply put, two kinds of participants are involved in a specific sports bet. The first is the one who wagers the ‘back bet’ – he wagers on the outcome of a specific sporting event, and chooses the stake. Then, there’s the second player who ‘lays’ the bet or bets against the outcome.

 

Let’s take a Wimbledon centre court match between Alcaraz and Djokovic, in which you think Djokovic will win. Instead of betting on the Serbian player, you can also ‘lay a bet’ on Alcaraz that he won’t win. This betting option is then matched with another bettor on the betting exchange.

Better Odds, More Control Over Your Betting Profits

In a way, betting exchange operators aim to revolutionise how we place our bets. One of the biggest benefits of betting at an exchange is gaining access to better odds since operators don’t rely on betting markets to earn profit. Also, many experienced bettors see the services of betting exchanges  as helpful in ‘guaranteeing a profit’. Laying a wager at a shorter price than when you simply ‘backed it’, is called ‘greening up’.  When you lay bets, you can see all potential outcomes of the events in green and display all potential profits. Finally, the betting exchange is an attractive option for many since they can place large bets. These betting exchange sites spice up the competition in the industry by providing bettors and sports fans with better sports betting experience.

Additionally, the transparency and fairness of betting exchanges appeal to a more informed and strategic audience.

Although there’s better value in these exchanges, there are a few drawbacks too that you need to consider. For example, the amount of bet you can place depends on the market’s liquidity. If you want a better payout return for your bet, you’ll also need to wait for someone willing to offer the same. In short, the betting opportunities you can enjoy in the exchange depend on other bettors. Finally, far fewer betting markers are available, and there’s no guarantee that someone will back your lay bet.

 

While there are still some challenges in lay betting at betting exchanges, there’s no denying its impact in redefining sports betting. These sites offer bettors and sports fans some other options, making the industry more competitive.

Betting Exchange: The Future of Sports Betting?

 

While the services of betting exchanges are quality and they represent a compelling and innovative way the development of sports betting,  they will not completely replace traditional bookmakers just yet.

 

Though  this peer-to-peer model often results in better odds for bettors due to the elimination of the bookmaker’s margin, it’s more likely that betting exchange sites will become popular among experienced punters looking for value and price-sensitive liquid markets like football, while traditional bookies will still dominate futures, props, and other liquid betting markets that aren’t considered about price.  As such, betting exchanges are poised to be a significant, but not exclusive, component of the sports betting industry’s future.

 



Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.