Online betting in India has evolved rapidly in recent years. The rise of digital platforms has given birth to new and exciting ways of placing bets, and betting exchanges have become a popular alternative to traditional bookmakers. While both options allow people to bet on the outcome of events, their underlying mechanisms, advantages, and user experience differ significantly.
Whether it’s traditional sports or online satta cricket, betting exchanges offer a new way to approach betting.
What is a Betting Exchange?
A betting exchange is a platform where individuals bet directly against each other rather than against a bookmaker. It functions as a marketplace where users can set their odds and either back (betting on the outcome to happen) or lay (betting against an outcome) different events.
A betting exchange makes revenue by charging a commission on the winning bets, usually a small percentage of the net winnings. This model creates a dynamic and transparent betting environment where users have more control over their bets and odds they are willing to accept. You can bet through an exchange on a trusted online betting app.
How Does a Betting Exchange Work?
The following points will help you understand how betting exchanges work:
Backing and Laying
In traditional betting, you can only back a certain outcome. In the betting exchange, you can also lay a bet. This flexibility makes exchanges unique.
Setting Odds
Users on a betting exchange can set their odds. For example, if you think that Team A has a greater chance of winning than others might think, you can offer odds lower than the market average. Similarly, you can wait for someone to offer favorable odds if you think the current market odds are unattractive.
Market Matching
Once the bet is placed, the platform matches it with another user who is willing to take the opposite position. The exchange remains neutral while facilitating the matching process, making it a platform for peer-to-peer betting.
Commission on Winnings
Betting exchanges earn money by charging a nominal commission on net winnings, which varies from 2% to 5% depending on the platform.
How do Betting Exchanges Differ from Bookmakers?
While both betting exchanges and bookmakers offer platforms for betting, the way the two operate is different. The following points will help you understand how betting exchanges differ from bookmakers:
Who Sets the Odds?
- Bookmakers: In traditional betting, the bookmaker sets the odds by calculating probabilities of various outcomes. The odds are designed such that bookmakers make a profit, irrespective of the event’s outcome.
- Betting Exchanges: Users set their odds in betting exchanges. This mostly results in better odds for bettors, as there is no need to include a profit margin for the platform.
Betting Against Outcomes
- Bookmakers: With a bookmaker, you can place a back bet, i.e., bet on a certain outcome.
- Betting Exchanges: On an exchange, you can place back and lay bets. Lay betting allows you to act as a bookmaker and bet against an outcome.
Revenue Models
- Bookmakers: Bookmakers make money by incorporating a margin into their offer odds. This ensures that they make a profit irrespective of the event’s outcome.
- Betting Exchanges: Betting exchanges earn through commissions on net winnings, charging a percentage of the bettor’s profit.
Transparency and Flexibility
- Bookmakers: The bookmaker controls the odds and betting process, limiting the options for bettors.
- Betting Exchanges: Exchanges offer flexibility and transparency by allowing users to set their odds.
Final Thoughts
Bookmakers and betting exchanges are different in the way they operate. Bookmakers offer a more traditional and rigid betting experience, with set odds and limited flexibility. Betting exchanges provide a peer-to-peer platform with competitive odds and greater flexibility through back and lay betting. Betting exchanges are a great option for bettors looking for greater control and value.
