Guide to Exchange Online Sports Betting
In Canada the majority of online sports betting wagers are placed with traditional bookmakers. In most cases, this is the easiest and most convenient way to bet on any major sporting event or race both locally and worldwide.
However, this is not the only way to bet on sports and entertainment. Betting exchange sites are becoming more and more popular with bettors looking for better odds and extended markets, and many bettors are opting to back and lay bets for better odds and higher profits.
For those unfamiliar with the concept of exchange betting, here is how it works:
The Premise Explained
Instead of sports betting online sites offering odds and paying out winning bets, exchange betting is where bettors place bets against other bettors. It is often referred to as peer-to-peer, which is actually a far more appropriate way to describe the service.
Traditionally, the bookmaker is responsible for laying the bet and posting the odds. In the case of the peer-to-peer system, all bets are placed between the public via an exchange site, removing the role of the bookmaker completely. The exchange site acts as a type of hosting platform, but the betting itself gets done by the bettors, with the site taking a percentage of the winnings from each transaction.
This form of online sports betting gives punters more control over the odds they want, and it gives them the opportunity to either back or lay a bet.
Backing a Bet
To get started, the first step is to sign up with a reputable site that offers this service. Registration is free, and it only takes a few minutes to fill in your details. You can then make a deposit into your account using any number of secure banking options.
Once you have a positive balance, you can get in on the action. The key feature of this format is being able take on the role of the bookmaker and lay a bet.
But first, let’s look at how to back a wager.
If you back bet, you are placing a bet as you would normally do at any sportsbook, and are predicting the outcome of an event. In this case, you are backing a wager at odds already posted by someone on the site. If you are happy with the wager and the agreed odds, you enter into an agreement with the person laying the bet.
If you are unsure of how to place a sports bet online, betting exchanges can be a great place to start. In general, you can find better odds and a more diverse range of bets at betting exchanges. For the novice bettor it is better to start out backing bets as is a “safer” route with only the initial outlay at risk. The exact odds and amount of the bets are agreed before placing the bet.
The Role of the Exchange Site
If your prediction is not successful, you pay the person who set the bet, while the exchange site takes a cut of the winnings. If you are successful, then the person laying the bet pays you, minus the cut for the site.
If you want to create your own wager, you can post a backing bet at odds you think are fair and see if anyone will lay it. The site acts as a trusted and reliable medium, and provides the framework for the transactions, the banking facilities, site security and software operations, much like a site that offers standard online sports betting. For this service, they take a small percentage of all winnings.
Laying a Bet
For anyone with a keen understanding of online sports betting, laying a bet can be extremely profitable, if you know what you are doing. By doing this, you are essentially saying that the backer is wrong and any one of the other outcomes will occur. However, it is considered a riskier option in that you are responsible for paying out the agreed odds if the bet is successful.
When you lay a bet you get to take on the role of the bookmaker and say that a specific outcome will not happen. This has its advantages for both the person backing the bet, and the person laying the bet.
For example, you could go in at odds of 12.00 that Sebastian Vettel will not win the Formula One championship. In this case it does not matter who wins, as long as Vettel does not win you will be paid out the agreed odds.
If the wager is posted on the exchange site and someone feels that the risk is worth the payout, they will agree to back the bet. Laying requires a lot more capital as the amount you stand to lose is far greater than the person simply backing the bet. If for example, you agreed to a prediction with odds of 12.00 with $50 you would be liable for $600 if the backer were successful. The backer would only be liable for the stake of $50.
This type of online sports betting may mean having to pay out larger sum, but is also means you have the odds in your favour, so it can be very lucrative too.
Tips and Techniques
If you want to try your hand at lay betting, a good tip is to start off with a low odds “favourite” in the region of 1.3 or 1.6. Even if you are laying a $1000 bet, you would be in for maxim loss of around $40. Wagering this way means you have to be more willing to gamble larger amounts of cash.
Since you are taking on the role of the bookmaker, you can stand to profit from your efforts in a big way. If for example, you lay a bet of 17.00, your profits would be significant, but if the backer is successful, you would be in for a serious loss.
Understanding Drifting Favourites
Lay betting is not for the faint hearted and requires a lot more understanding and skill than traditional sports betting. That being said, there are plenty of opportunities to increase your winnings with drifting favourites. In sports like golf or test cricket, the odds for the favourite can drift depending on the day’s play. Laying a bet on the favourite directly after a significant event where the favourite drops out can be profitable, since there is more action to come and the odds could drift back again.
Exchange betting is a great option for anyone with a little bit of know how, or someone looking for an alternative to the more traditional options.