Using the Betfair exchange for horse racing allows punters to bet against each other rather than against a bookmaker. You can act as the bookmaker or just the punter. With certain types of races, it allows me to have a free bet. That’s why it differentiates Betfair from traditional betting establishments and bookmakers as the betting exchange allows me, the user, to act as the bookie.
My favourite way of punting on horse racing, other than exotics is to back an “odds on favourite” to lose a race and then back another horse or horses to win the same race. That’s where the free bets come in. How does that work?
- I find races where I think the Odds on Favourite is at risk of being beaten.
- With the Betfair exchange it allows me to lay the favourite at lay odds of say $1.30 for $100 (example only).
- My risk is $30 if it does win the race, if it runs second back to last, I win.
- My profit is $94 after commission is paid, as I’m acting as the bookmaker.
- At the same time, I have two bets on the same race on two other horses I think can beat the favourite.
What are the outcomes using the Betfair Exchange:
If the favourite loses I get $94 ($100 less commission) this is in addition to the return of my stake of $100.
If one of my horses wins then the other horse loses, and on a bet of $45 at 5/1, after commission I get $211.50. On Betfair, if your horse wins the outlay of $45 for the bet is returned.
Outlay on bets x 2 @ $45 each = $90.00. Lose on one horse of $45.00
Total Profit for this race is $260.50 and it cost me nothing.
If the favourite wins, the risk in this type of horse racing betting is that you will pay $120.00 out:
- On the lay bet, the liability is $30.00 which is paid to the punter.
- Loss of $90.00 for 2 x $45.00 bets.
Whereas traditional bookmakers accept the risk of going head-to-head in various bets with punters, the business of a betting exchange does not involve any risk. The exchange simply provides the technology that pairs punters together in order for bets to take place, and takes a commission from the net winnings that result.
The introduction of betting exchanges opened up a vastly expanded range of betting options for punters, simply because people are willing to back bets that risk-averse bookmakers would not.
Punting on horse racing and teaching our members how to find value bets is a great way to make my living. If you would like to know more call us, it doesn’t cost anything to ask a few questions. Call on 1300 RACEBIZ or send a note through the Contact Form.
I love my job and I can do it anywhere in the world!