With well over a billion people tuning in to watch the 2019 Cricket World Cup, it’s obvious that cricket is one of the most well-loved games around the world. And what better way to make a much-anticipated cricket match all the more enjoyable than by placing a wager on it?
Betting on cricket has been popular for decades, but the advent of online betting has really taken things to the next level. Now, there’s another way to make the whole process even fairer and more fun for gamblers: betting exchanges. For the uninitiated, we’ll dive into what betting exchanges are, how they differ from traditional bookmakers and the advantages they bring.
What is a betting exchange?
Whereas placing a bet would traditionally involve visiting a bookmaker (either in-person or online) and agreeing to their pre-offered odds, betting exchanges are quite different. Instead of offering odds and risking a stake against punters, betting exchanges are simply forums where individual bettors can bet against one another.
For example, punter A might decide they want to back India in an upcoming test match against South Africa. This is called a “back” bet. Punter B can meet those requirements by placing a “lay” bet in opposition, which means that they simply bet on India (and punter A) to lose. The betting exchange itself does not stake any money, but rather takes a small percentage of the winnings as its fee for hosting the bet in the first place.
How do betting exchanges differ from bookmakers?
The major difference between betting exchanges and bookmakers is that the latter are always pitted against the consumer, whereas the former simply take a neutral stance in hosting a bet between two (or more) consumers. For this reason, there are more options for punters to bet on, since they can take the “lay” bet if they want (a position traditionally occupied by the bookmaker).
Because betting exchanges are peopled by hundreds of thousands of punters, they generally offer more variety and choice in the bets they offer, as well. A bookmaker might decide that they do not wish to take a specific bet or offer certain odds, but a punter is far more likely to find someone willing to bet against them on an exchange. For those interested in the differences between the two entities, you can read more about it here.
What are the benefits of a betting exchange?
Aside from the greater flexibility and enhanced selections on a betting exchange, it also carries several other advantages. For starters, the fact that there is no “house edge” means the odds being offered are often much fairer than those at a bookmaker. This is encouraged further by the amount of competition for bets on a betting exchange; if someone offers their bet at unfavourable odds, they run the risk of it not being picked up.
Another big draw of betting exchanges is the ability to hedge your bets as the odds change. Bookmakers use complex algorithms to ensure that punters cannot back all possible outcomes and still turn a profit. However, since betting exchanges offer variable odds depending on the individual, it’s possible to react to real-time developments and seek out alternative bets to ensure you get your stake back or even earn a profit.
With more variety, greater odds and a fairer experience all round, it’s no surprise that betting exchanges are skyrocketing in popularity.
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