Betfair s Free Sport Betting Business Model

I've been using Betfair for a long time now yet it's only recently I've wondered simply how much can this company actually make? This question is the thing that has compelled me to publish this article. I will not get copies of the accounts from companies house, this article is going to be all conjecture based on what I've acquired from using the site over the years.

What has allowed me to ponder this question could be the transparency inside the Betfair site. If you consider traditional bookies such as WilliamHill, Ladbrokes or Betfred, that which you have no idea on any particular sporting event is the thing that has been bet in total as well as 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 among the traditional bookmakers websites and backing various horses. The outcome is repeat the second favourite winning, sbobet we now have not a clue whether people were backing the outsider or favourite, simply how much was bet, and what sort of conserve the bookmaker made.

Now think about the same race with Betfair. The total amount exchanged with the race emerges near the top of the page, this really is typically about A�200,000 for the standard horse race. Now we realize that Betfair have a commission on all winnings, as well as every bet exchanged there exists a winner, so they're taking their 5% regardless of the result - about A�10,000 in this case.

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

Now look at the Premiership football season. At least 12 games per week generating between A�200,000 plus a million pounds in exchanged bets, take the average and figure out 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 a thousand pounds per week in revenue.

Bear in your mind you could (and people do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, as well as gaming. I'm beginning arrive at the final outcome that they must be getting weekly revenue inside millions, of course, if it's only A�3 million a week, that's over 150 million per year.

I admit to having no clue if my workings are drastically wrong here, and when Betfair actually has annual revenue of A�1million or A�1billion. Neither do I have a sense of what their hips, IT costs etc total. What I do see is always that unlike traditional bookmakers the result of any sporting event doesn't have any relating their revenue.

To this end their main aim is always to just recruit as many customers as possible, which poses the question; while using numerous online bookies on the market offering free introductory bets as high as and in overabundance A�100, then why do Betfair offer only A�30. That is the topic of my next article.