What Is a ‘Betting Exchange’?
A “Betting Exchange” is a platform that lets you bet directly against other people, instead of betting against a sportsbook.
Think of it like a stock market for sports bets. The exchange itself doesn’t set the odds or take your bet; it’s just a marketplace that connects a person who wants to bet for something to happen with a person who wants to bet against it.
The Two Big Differences
This model creates two huge changes from a normal sportsbook:
1. You Can “Back” or “Lay” a Bet:
- Backing (The Normal Bet): This is what you’re used to. You bet on the Cowboys to win. You are “backing” the Cowboys.
- Laying (The New Bet): This is the game-changer. You can bet on the Cowboys to not win. You are “laying” the Cowboys. This means you win if they lose or if the game is a tie. You are effectively playing the role of the sportsbook.
2. How They Make Money (Odds are Often Better):
- A Sportsbook makes money by building a “vig” (or “juice”) into its odds, which is why both sides of a bet are -110.
- A Betting Exchange makes money by charging a small commission (like 2-5%) on your net winnings for a specific game.
Because the odds are set by supply and demand (what other bettors are willing to back and lay), you can often find better, “truer” odds because there’s no middleman (the bookie) taking a cut.
A Quick Example
Let’s say you want to bet on the Lakers, but your sportsbook has them at -150.
On an exchange, you might find another user who is willing to “lay” the Lakers at -130. The exchange matches your “back” bet with their “lay” bet.
- If the Lakers win: You win your bet at the better -130 price. The other user pays your winnings. You pay a small commission to the exchange.
- If the Lakers lose: You lose your stake. The other user (the “layer”) wins your money and pays a small commission.
In short, it’s a peer-to-peer betting marketplace that gives you the unique power to “lay” (bet against) an outcome.