Have you ever heard of the concept of a Betting Exchange? Besides the traditional form of betting, betting exchange is also welcomed by many players because of their flexibility and simple rules. Betting rates and rules set by the bookmaker have become too familiar, then a new form of betting was born. The rules are simple, interesting, attractive, and free; players can become bookmakers themselves. That is the form of a Betting Exchange. So how does this form work? How to play? Let’s find out more with PHLOVE.
What is a Betting Exchange?
Exchange betting, also known as peer-to-peer betting, is a form of betting where players bet against each other, instead of betting against a fixed bookmaker. Players can bet on any sport (football, volleyball, basketball, cockfighting, buffalo fighting, horse racing, car racing,…0
In 2000, a famous bookmaker announced that bringing players a new form of betting, the first in the history of betting, it would wipe out all active bookmakers. Unfortunately, their statement did not come true, because in reality, more and more bookmakers are born and serve millions of players around the world. Although they could not wipe out bookmakers, they succeeded in introducing a new form of betting, no less attractive than traditional betting. That is the form of Betting Exchange that we are learning about today.
How Betting Exchange Works
You can bet on any sport you like. In this article, we will take examples of betting exchanges in football for you to understand. more visualization. This form of betting clearly shows its flexibility and excitement in football betting.
As we know, with traditional betting, players will bet with the bookie, play according to the rules and odds offered by the bookie. With this form, the bookie takes the initiative and has more advantages. With exchange betting, this is an online betting market where players are provided with a platform (also known as an exchange) for them to bet with each other. Players choose their preferred odds and the amount they want to bet. The exchange will then match players who want to bet the same odds (but with the opposite result) to the odds that the previous player created.
At this point, you will wonder where the winnings come from. The answer is simple. When a player participates in the odds on the exchange bet, the exchange will automatically deduct that amount from the player’s account. This amount will be transferred directly into the winner’s account after the bet is over. The exchanges collect a small fee (usually 3-5%) from the amount the winner earns.
In exchange betting, the bookmaker (also known as Layer or Lay Betting) is the person who creates the betting odds, acting as the bookmaker. The backer (also known as Backer, Back betting) is the person who agrees to play with the odds created by the Layer, so the Backer acts as the player in the traditional form of betting with the bookmaker.
The Backer will choose an outcome to bet on. If the Backer wins, he will receive the winnings and the original amount he bet. If the Layer wins, he will receive the amount the Backer bet. The exchange will collect a fee from the amount the winner receives.
Advantages of Exchange Betting
Although it was born after the traditional form of betting, Exchange Betting has proven its superiority and has quickly been adopted by hundreds of thousands of players.
Players are more proactive
When betting with the bookie, you have to play according to the rules set by the bookie. And the bookie has the right to change the odds if they see any risks (before the match starts). This reduces your advantage. For traditional betting, you have the right to choose the odds that you like or feel confident about. This gives you more options, and you manage the risks, leading to a chance of winning your bet.
Flexible rules
In exchange betting, you have the right to propose any odds you like, and this bet will only happen if a player is willing to accept the odds you set. This is a flexibility that traditional betting does not have; you bet according to your own needs, suitable preferences, and strengths. This is something that traditional betting with the bookmaker does not meet for players.
Less fees
If you bet with the bookmaker, you will have to accept a cut of money (usually 10% and has been directly included by the bookmaker in the odds, so that they can create long-term business profits). This fee in exchange betting is lower (usually the exchanges only collect 3-5% commission from the amount that the winner receives, to maintain the operation of the exchange).
Disadvantages of Exchange Betting
Must find a companion player
The first disadvantage of exchange betting is that you must find a player with the same choice, or one willing to accept the odds you set. Simply put, the betting deal will only happen if you find a companion.
Low Bonus
In traditional betting, to attract players, Vietnamese bookmakers often offer attractive bonuses ranging from several million to hundreds of millions of VND. With exchange betting, the bonus may be lower, because this amount is paid by the player himself (if he loses).