Best US Betting Exchange Sites 2019/2020:
- Betfair Sports Betting Exchange: NJ, NY, PA (most popular)
- SBK App by Smarkets: Indiana, 2019
- Matchbook: Biggest Exchange
- BetDaq: Lowest Comission
Despite many alternatives to Betfair, this site is the king of sports betting exchanges both in the UK and the United States. Originally, Betfair and Flutter.com offered the first betting exchanges but the two entities merged under the Betfair banner in 2001.
If you go to the Betfair website (most popular betting exchange in the world), you’ll see two categories to choose from – regular sports betting and betting exchanges. Under the latter, you’ll find odds on offer on games for both back and lay wagers, as well as an indication of what the payout will be on a winning wager.
In 2015, Betfair merged with fellow United Kingdom powerhouse Paddy Power to become a giant sportsbook empire, and they’ve since partnered with FanDuel to open sportsbooks in the United States.
Betfair is currently operating legal sportsbooks in New York, New Jersey and Pennsylvania. Their New York sportsbook is located at Tioga Downs, while in New Jersey they operate out of The Meadowlands. Betfair’s Pennsylvania book is in the Valley Forge Casino Resort In King of Prussia near Philadelphia.
Bettors in each of those states can open accounts with any of these sportsbooks and wager online, as long as they are physically within the boundaries of that state.
Betting Exchanges Comission Rates
The average comission on wins and losses betting exchange sites charge you is 1.4-2.5%. The lowest comission is offered by Matchbook – up to 1.8%. The highest comission rate is at Betafir Exchnage US – 5% (only on wins). You pay 2% comission at Smarkets and BetDaq.
Using A Betting Exchange To Trigger A Risk-Free Bonus Offer
Sportsbooks frequently offer cash bonus offers to entice new customers. For example, Betfair currently offers a promotional deal where if you wager up to $50, they will add an additional $100 for wagering purposes into your account.
Here’s a method whereby you can trigger the bonus and not lose any more on you original wager. First of all, to get the bonus, you must make five qualifying wagers of at least $10 on odds of 1.50 or higher.
Let’s go back to that Saints-Texans game. Enter the market for an exchange bet on the Saints for $10 against someone willing to give you 1.50 on New Orleans. Then make the same $10 bet on the Saints through the traditional sportsbook method.
Then, enter a second $10 wager via exchange taking the Saints to lose at odds of 1.50. And also bet the Texans to win the game via a traditional sportsbook bet. Now, no matter which team wins the game, you are guaranteed to make money. You’re one $10 wager away from triggering your $100 in free bets and the odds are you will be ahead of the game financially.
Backing And Laying Explained
The two types of bets utilized within a betting exchange market are known as a back and a lay.
How does sports betting exchnage work?
Betting exchange rules are simple. When you bet on a team or individual to win a match on one of the US betting exchange sites, you are backing them. When you lay a bet on an event, you are betting that the person or team will lose the match.
In a traditional wager, the bettor is backing a team or individual to win. The bookmaker is laying odds on that match.
Betting exchanges are the only form of sports gambling where you are permitted to put money down on a competitor or team to lose.
Betting Exchanges vs Traditional Sportsbook Wagering
The idea of a betting exchange was born around 20 years ago. Instead of a traditional style of wagering where you placed a bet with a sportsbooks on the odds on offer from that particular book, with a betting exchange, you instead went head-to-head against another bettor.
Think of it as a matchmaking service for sports bettors. The operators of the betting exchange find a bettor who is willing to take the opposite line on a game from you. For instance, let’s suppose that you want to bet on the Houston Texans to win on the road at the New Orleans Saints in an NFL game.
In this example, let’s also suppose that the Saints are seven-point favorites, so you would need to be paired up with a New Orleans backer who is willing the lay the seven points and take the opposite action to your play, and also risk the same amount of cash on the game as you are putting down.
When the game concludes, the money wagered transfers into the winner’s account, minus a small commission that the facilitator of the bet exchange charges for services rendered.
Why A Betting Exchange Over A Traditional Sportsbook?
When you wager a bet in traditional style at any sportsbook, you must take the odds on offer from that sportsbook. In a betting exchange scenario, there is wiggle room in terms of the odds.
Often, betting exchanges will provide more competitive odds than a traditional play at a sportsbook. Since it is a peer-to-peer platform, supply and demand plays a significant role in the way exchange bets are made. You can put forth a proposal for a wager on an event to the proprietors of the betting exchange. In essence, you are your own bookmaker.
Let’s say you want to bet on Barcelona to beat Real Madrid in an away La Liga match. But since Barcelona is the visiting side, you want to be given a goal as a spread on the match. You make this bet proposal to the betting exchange.
They then seek out someone willing to put their money on Real Madrid and offer you the one-goal margin as a spread. If the match is made, the bet is on. You aren’t playing against the odds set by the sportsbook. You’re playing by the odds you established on the match. It’s that simple. And the advantage is that by setting your own odds, you can also set yourself up to win more money than if you were to place a straight bet on Barcelona to win via a sportsbook.
Disadvantages Of Betting Exchanges
First and foremost, one of the biggest drawbacks to this type of wagering is that there are often very limited markets. Betting exchanges look to contain their liquidity on these type of bets, so they will put governors on which events and what types of wagers they’ll accept for bet exchange action.
Most betting exchanges won’t allow you to play parlay wagers via a bet exchange. As well, they generally restrict the odds that can be played via a betting exchange. That range is usually between 1-100 and 999-1.
In the vast majority of cases, you’ll likely need to stay relatively close to the odds on offer from the traditional sportsbook bet in order to find a betting exchange opponent willing to take up your action.
As well, you’ll just have to accept that there will be occasions when no one is willing to take up the opposite wager to the one you wish to play via betting exchange. In a traditional betting format, this isn’t an issue. Once you enter your bet, you are guaranteed action.
- Best US Betting Exchange Sites 2019/2020:
- Betting Exchanges Comission Rates
- Using A Betting Exchange To Trigger A Risk-Free Bonus Offer
- Backing And Laying Explained
- Betting Exchanges vs Traditional Sportsbook Wagering
- Why A Betting Exchange Over A Traditional Sportsbook?
- Disadvantages Of Betting Exchanges