Betfair s Free Sport Betting Business Model

I've been using Betfair for a long time now however it is only recently I've wondered the amount can this company can even make? This question is exactly what has compelled me to create this short article. I will not receive copies with their accounts from companies house, this content will probably be all conjecture depending on what I've acquired by using the website through the years.

What has allowed me to ponder this question could be the transparency inside Betfair site. If you consider traditional bookies including WilliamHill, Ladbrokes or Betfred, that which you do not know on any particular sporting event is the thing that may be bet in whole and on what particular outcome these bets were placed.

Take an everyday Friday afternoon race meeting at say Ascot. It's the 2.30 and 5 horses are racing; the punters are logging to one of several traditional bookmakers websites and backing the many horses. The outcome is the second favourite winning, we now have no clue whether everyone was backing the outsider or favourite, the amount was bet, and sboarena what are the conserve 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 really is typically about A�200,000 for 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% regardless of the result - about A�10,000 in cases like this.

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

Now look at the Premiership football season. At least 12 games a week generating between A�200,000 as well as a million pounds in exchanged bets, go ahead and take average and exercise the 5% commission understanding that's another A�350,000. On top of this you have the lower league and foreign games that must generate another A�100,000 in commission so we're up to Half one million pounds every week in revenue.

Bear in mind you could (and the ones do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, as well as gaming. I'm beginning to visit concluding that they must be attracting weekly revenue within the millions, and if it's only A�3 million per week, that's over 150 million annually.

I admit to presenting no clue if my workings are drastically wrong here, if Betfair actually has annual revenue of A�1million or A�1billion. Neither do I have a concept of what their legal fees, IT costs etc figure to. What I do see is that unlike traditional bookmakers the end result from a sporting event doesn't have relating their revenue.

To this end their main aim must be to just recruit numerous customers as is possible, which poses the question; with the numerous online bookies out there offering free introductory bets of up to plus overabundance A�100, then how come Betfair just offer A�30. That could be the topic of my next article.