Betfair

Betfair is the largest online lottery company in the UK, and the largest exchange in the world. It has 4 million customers, one million of whom are active, and a weekly turnover of £50 million (€55 million).

Betfair actually comprises two separate operations, Betfair Exchange and Betfair Sportsbook. When it was introduced Betfair Exchange was a radically different concept in online betting, because rather than betting against a bookmaker, punters were betting against each other with Betfair acting as a middleman, taking a commission for their service.

Exchange betting, in essence, is a market where quotas are set for certain events and other players have to decide whether to match them. Bettors barter between them until they reach a point is reached which both parties are prepared to accept. This makes user’s act as both bettor and bookie at the same time.

However, operating in such a way had certain drawbacks for Betfair. It could not offer fixed odds without a bookmaker’s permit, bonuses, promotions, and free bets could not be offered, and multiple bets were not possible.

To address this, the Sportsbook operation was set up which offers the services traditionally associated with a bookmaker. As a result, customers can now choose between Exchange odds (on the Exchange) and Fixed odds (on Sportsbook). Both are available through the same login, and do not have to be funded separately.