Unlike traditional bookmakers, where you’d be wagering against the house, sports betting exchanges use a different system where you can back or bet against other punters’ wagers. It’s a perfect option for those seeking what’s referred to as “precision betting” with more favorable odds. Stick along as we explain what it means, what are the main benefits, and how “lay” and “back” odds work.
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The odds on certain events depend on the “betting pool” which represents the number of both lay and back odds placed on that specific event. So, you’ll be wagering with or against other punters, and the odds and payouts are directly related to the total number and amount of wagers placed.
Just like regular sportsbooks like Paddy Power or Bet365 have their benefits and flaws, betting exchanges like PIWI 247 and Betswap.gg are quite different. To avoid confusion and help you pick the best one for your needs, our BetZillion team will assist you in comparing bookies’ features and punting options so you can find a perfect one.
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The thing is – every player who values getting more competitive odds or a chance to reduce the risk of the regular bookies’ house edge should check betting exchanges. They might sound a bit complex at first, but we’ll explain a bit more about the major ones right here in this guide.
The most popular ones for UK and US punters, like Betfair, also offer popular sports like football, basketball, tennis, and horse racing staking. They have all the regular options like match winner, totals, handicaps, and others, with the addition of lay and back odds. Take a quick peek at our shortlist to find the best ones for your punting style:
Betfair is a London-based betting exchange and one of the first ones to hit the market back in 2010. It even got listed on the London Stock Exchange as one of the fastest-growing billion-pound companies.
You could say it earned the trust of local punters through special features like the £20 free exchange bet which you can get back if it busts, as well as nearly 30 sports you can stake on through the exchange, including horse racing and cricket.
Smarkets is a UK-based exchange with international offices from Los Angeles to Malta. It has one of the lowest commissions of just 2% on your net winnings, which is more than convenient since some exchanges feature commissions higher than 3%.
Plus, Smarkets also has a special addition of the “Matched Betting Hub,” where you can conveniently track the most frequently matched events.
As an Alderney-based company, Betdaq combines the conveniences of having an exchange, a regular bookie, and a casino on just one platform. What’s so special about it is the addition of the virtual sports exchange, as well as the “Enhanced Specials” section with boosted lay and back odds.
Being one of the best exchanges for US wagerers, Matchbook offers local horse-racing events, a bet builder exchange, and some of the most competitive lay and back odds.
Founded back in 1946, BetVictor has a long tradition of organizing betting events for UK punters. It’s one of the most reputable independent bookies out there, which calls for fairer odds regardless of the exchange aspect.
Last but not least, Ladbrokes is an exchange with one of the most convenient wagering apps out there, as well as diverse markets for football, basketball, horse racing, and nearly 30 other sports.
Have a look at the comparison table below for more details:
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Just like regular bookmakers, betting exchanges also offer some unique deals for punters, including free tickets. For example, Betfair’s £20 free bet can only be used for lay and back odds, unlike traditional free stakes on regular bookies. Below, you’ll find the best exchanges with generous sign-up and reload bonuses.
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Claim Bonus | New customers only! Deposit now and receive your 50% freebet bonus up to €100. Full T&Cs apply |
New user promos on betting exchanges are not much different from welcome offers on regular bookies. In most cases, deposit match rates are just a bit lower, since you do get that benefit of precision betting for scoring higher profits.
For example, PIWI 247 offered 30% of up to £300 in matched FB for new customers, while some exchanges like Betdaq came up with unique welcome promos. In this particular case, Betdaq grants 100 days without any commission charged on your winnings, which is pretty substantial considering they are usually set from 2% to 5%, depending on your residency. Bonus T&Cs may apply to these offers.
Free bets are also available on major exchanges, and they also work the same way as they do on regular bookies. A perfect example is the £20 free bet at Betfair, as well as £30 in free stakes for horse racing or up to £50 in FB for newcomers at Matchbook.
While traditional sportsbooks feature a system where you’re staking at odds determined by the house, exchanges allow you to bet with or against other punters. So, you’ll have two main options – betting on “back” odds or placing “lay” wagers.
To explain it simply, let’s say you’re placing a bet on Manchester United to win against Liverpool (a favored team) as a guest. Naturally, the odds are higher than on home to win, so you might see something like the back odds being 5.00. In this case, it works like a regular bookie – you wager £100 on Manchester United to win, and if they do, you get £500, or £400 in profit.
In this case, it’s important to count on the commission on your win, which lowers your profits down to £388 with a 3% commission rate. If the match ends with Liverpool’s win or a draw, you’d lose your £100.
Now, if you bet on “lay” odds of 5.00, the display amount (let’s say £100) is not your total wagered sum but rather your potential win. So, you’d win £100 if Manchester United does not win, but you would lose £100 times 5.00 (the original odds) reduced for the displayed potential win of £100 if they do. In other words, you’d lose 400.
Of course, there’s a commission on winning a lay bet as well, so you wouldn’t win £100 exactly, but rather something like £97 with a 3% commission. So, what’s the point of the exchange?
If Manchester United ends up winning, those who placed the lay bet would end up paying out their £400 to the winners who backed Manchester United for £400 profit. In any way, the exchange earns that 3% commission, which is how they make money. So, both punters who place lay and back options dictate the market and directly influence the odds on the exchange rather than the house doing it.
Now that you know how punting exchanges work and make money, it’s time to scratch beneath the surface of the key terms like backing or laying. There’s also one major benefit for punters, and that’s “Matched Betting.” We’ll explain all these terms below:
As shown from our example above, placing a back bet is like betting on a match winner or other pre-match bets on a regular bookie. Here’s another example – you can bet on Manchester City to beat Manchester United on home turf in the derby match, and if you win, you’d be paid out from the betting pool created by those who layed that outcome, minus the commission rate, of course.
If you’ve placed a lay wager on the same match, you’d be playing on Manchester City not to win the game. So, if it ends with a draw, or Manchester United wins, you’d be paid out from the pool of wagerers who placed a “back” wager, minus the commission rate.
Something that you won’t find in traditional bookmakers is the concept of “Matched Betting,” which is available on betting exchanges. Essentially, it’s like placing a foolproof safe bet by covering all the match outcomes at the same time, like sure betting.
However, while most bookies would ban punters who they identify to be doing this, betting exchanges allow you to conveniently cover all the outcomes. For example, let’s say you’ve placed a lay bet on that Liverpool-Manchester United game we’ve mentioned. You’ve placed a lay bet on odds of 5.00 (Manchester United not to win), and Liverpool leads 1-0. At that moment, the odds of Manchester winning the game jumped from 5.00 before the game to 9.00 or even higher.
You can then match your lay stake by placing a back bet (betting that Manchester United WILL win at higher odds) and, therefore, cover both outcomes. If you hit the moment and the odds right, you could end up exiting the risk and securing profit regardless of what happens until the end of the game. Better yet, you could place those bets with funds you’ve gotten from betting bonuses on our reviewed exchanges and ensure even higher profits.
Commission rates are the cornerstone of every betting exchange since, as we explained, that’s how they make money. Winning wagers are always dedicated by a commission rate in range from 2% to 5%, depending on the exchange. For example, Betdaq and Matchbook keep 2% of your wins, while Betfair’s commission ranges from 2% to 5%, depending on your location.
Liquidity on a betting exchange sounds confusing, but there’s a simple explanation – you can place a lay bet on a certain market as long as there are enough back bets to cover the opposite outcome. That’s why sometimes you might not find certain bets available on matches and markets without enough coverage on both sides.
If you’re fast enough to bet on live markets, you can reap the rewards of in-play matched betting, something that’s not usually available on traditional sportsbooks.
There are just several betting exchange tips we can offer you that differ from strategies for regular bookies. The first one is to make use of available exchange bonuses, while the second one is to make the most out of matched betting. Our experts advise you to carefully place a back bet on a favorite to win and then match the bet by laying the opposite outcome if the favorite leads. Due to the difference in odds, you’d end up hitting a sure bet or at least exiting the risk with a small profit without any chance of losing.
At BetZillion, our experts are dedicated to bringing you betting exchanges with the fairest odds, the largest market pools (most popular platforms with a lot of punters), and the fastest in-play and matched betting options. Here’s a detailed overview of how we do it:
The easiest way of picking a safe exchange is by looking for a valid trust certificate like the UKGC license, as well as checking for an SSL certificate as a sign of high-end security measures.
We usually find legal exchanges by checking for properly licensed operators like Betfair with its UKGC license or independent bookies like BetVictor.
The odds are mainly dependent on the betting pool, so we tend to only bring you platforms with large pools of users, such as Smarkets, Betdaq, or Betfair.
Just like regular bookies, betting exchanges feature safe and vetted payment options, including credit cards, e-wallets, and even crypto.
Last but not least, you should check both our BetZillion reviews of betting exchanges and other punters’ reviews to get an unbiased impression of the site’s value.
To put it briefly – yes, using betting exchange sites is worth it thanks to a lower house edge, more convenient odds, and the chance of placing matched stakes. To help you see the value, we’ve created a list of the main pros and cons:
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In the end, it all comes down to comparing traditional sportsbooks with exchanges, and we have to say that exchanges are simply more convenient. Even if you’re new to the world of betting, you’ll easily notice the difference in the odds, which are simply way more favorable on exchanges.
Matched betting is also something that you could try to minimize the risk of losing a wager, and that’s usually not allowed on regular bookies. Plus, they don’t have matched betting in-play tools that exchanges do. The only disadvantage of exchange platforms is the lack of markets for certain events without a sufficient pool. But that’s not something you’ll see that commonly, especially when it comes to major events from popular sports.
If you’ve just caught up with us, here’s a brief overview of the main qualities and options that a betting exchange offers:
Responsible betting is just as important on exchanges as it is on traditional bookies. Make sure to wager within the limits of what you can afford to lose, and don’t chase your losses. If you need any help or responsible gaming resources, refer to the exchange’s support staff and responsible gaming tools.
After reading this guide, you should hopefully be ready to take on exchanges while fully comprehending the key concepts like lay and back betting, as well as matched betting.
We also made sure to explain the commission rates and the main differences between betting exchanges and regular sportsbooks. Most importantly – you can use the picks listed by BetZillion’s team of experts to find a reputable exchange with generous newcomer offers and all your favorite punting markets.
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