Betfair's Free Sport Betting Business Model
I've been using Betfair for a long time now yet it's only recently I've wondered how much does this company can certainly make? This question is exactly what has compelled me to create this short article. I will not be getting copies of the accounts from companies house, this content will be all conjecture depending on what I've picked up while using your website over time.
What has allowed me to ponder this question is the transparency in the Betfair site. If you consider traditional bookies such as WilliamHill, Ladbrokes or Betfred, what you have no idea of on any particular sporting event is exactly what has become bet in whole and so on what particular outcome these bets were placed.
Take a normal Friday afternoon race meeting at say Ascot. It's the 2.30 and 5 horses are racing; the punters are logging to among the traditional bookmakers websites and backing the different horses. The outcome is say the second favourite winning, we've not a clue whether individuals were backing the outsider or favourite, the amount was bet, and what are the assist the bookmaker made.
Now consider the same race with Betfair. The total amount exchanged with the race emerged near the top of the page, sboarena this can be typically about A�200,000 for a standard horse race. Now we know that Betfair require a commission on all winnings, and then for every bet exchanged there exists a winner, so they're taking their 5% whatever the result — about A�10,000 in this instance.
So now to get a quick bit of 'back of fag packet' maths. Approximately 40 races each day generating A�10,000 each are A�400,000 per day 7 days per week, that's 2.8 million pounds a week. Throw within the bigger meetings knowning that rounds it to say 3 million, 5% of which is A�150,000.
Now consider the Premiership football season. At least 12 games every week generating between A�200,000 plus a million pounds in exchanged bets, consider the average and exercise the 5% commission and that's another A�350,000. On top of this there is the lower league and foreign games that has got to generate another A�100,000 in commission so we're up to Half a thousand pounds every week in revenue.
Bear at heart that you can (and the ones do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, let alone gaming. I'm beginning come to in conclusion that they must be pulling in weekly revenue inside millions, and when it's only A�3 million a week, that's over 150 million a year.
I admit to using no idea if my workings are drastically wrong here, of course, if Betfair actually has annual revenue of A�1million or A�1billion. Neither do I have a solid idea of what their legal fees, IT costs etc total. What I do see is the fact that unlike traditional bookmakers the results of any sporting event has no effect on their revenue.
To this end their main aim must be to just recruit as numerous customers as possible, which poses the question; with the numerous online bookies out there offering free introductory bets all the way to and in way over A�100, then how come Betfair offer only A�30. That is the topic of my next article.
What has allowed me to ponder this question is the transparency in the Betfair site. If you consider traditional bookies such as WilliamHill, Ladbrokes or Betfred, what you have no idea of on any particular sporting event is exactly what has become bet in whole and so on what particular outcome these bets were placed.
Take a normal Friday afternoon race meeting at say Ascot. It's the 2.30 and 5 horses are racing; the punters are logging to among the traditional bookmakers websites and backing the different horses. The outcome is say the second favourite winning, we've not a clue whether individuals were backing the outsider or favourite, the amount was bet, and what are the assist the bookmaker made.
Now consider the same race with Betfair. The total amount exchanged with the race emerged near the top of the page, sboarena this can be typically about A�200,000 for a standard horse race. Now we know that Betfair require a commission on all winnings, and then for every bet exchanged there exists a winner, so they're taking their 5% whatever the result — about A�10,000 in this instance.
So now to get a quick bit of 'back of fag packet' maths. Approximately 40 races each day generating A�10,000 each are A�400,000 per day 7 days per week, that's 2.8 million pounds a week. Throw within the bigger meetings knowning that rounds it to say 3 million, 5% of which is A�150,000.
Now consider the Premiership football season. At least 12 games every week generating between A�200,000 plus a million pounds in exchanged bets, consider the average and exercise the 5% commission and that's another A�350,000. On top of this there is the lower league and foreign games that has got to generate another A�100,000 in commission so we're up to Half a thousand pounds every week in revenue.
Bear at heart that you can (and the ones do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, let alone gaming. I'm beginning come to in conclusion that they must be pulling in weekly revenue inside millions, and when it's only A�3 million a week, that's over 150 million a year.
I admit to using no idea if my workings are drastically wrong here, of course, if Betfair actually has annual revenue of A�1million or A�1billion. Neither do I have a solid idea of what their legal fees, IT costs etc total. What I do see is the fact that unlike traditional bookmakers the results of any sporting event has no effect on their revenue.
To this end their main aim must be to just recruit as numerous customers as possible, which poses the question; with the numerous online bookies out there offering free introductory bets all the way to and in way over A�100, then how come Betfair offer only A�30. That is the topic of my next article.
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