Betting exchange could be the next big thing in Africa

Africa is relatively experiencing rapid growth in the gambling industry year on year, though this could be said particularly sports as played a major role in influencing the young Africans, which is coupled along with infrastructural development the continent is experiencing as well as majority of the African states are embracing digital economy.

However, as the numbers of punters kept on increasing on a daily basis as well as transformation of punters behaviors, compare to the conventional ways of wagering on bets, meaning punters are always seeking for the best way to win a bets on a bookmaker’s platform though, betting exchange could be the best solution for punters given them another dimension to wager on bets as well given you flexibility to set your odds.

What is Betting Exchange?

Betting exchange is an online service, which allows punters to bet against each other on sports and range of other events. Further, if you are familiar with the traditional bookmakers, thus you are in control of your odds and winnings, a betting exchange can appear difficult. But once you appreciate the differences, and understand how they work, there are plenty of opportunities to trade and take advantage of the increased value whether it from getting better odds or locking in a profit before the result is even known. The betting exchange simply provides the platform and pairs bettors against each other for bets to take place. The exchange is usually a bookie that takes a commission for this service, commission charge range with different bookies. For instance some of the bookies that offers such services includes the Cyprus based company 1XBET offers such services another is BETFAIR exchange offers such services in their platform.

How dose betting exchange works

Instead of being limited to the odds set by bookies, and only having an option to back the result, the betting exchange facilitates users to go head-to-head against each other and the opportunity to create their own markets, one backing and one laying. For instance if you think the football team you want to back are going to drift to a bigger price due to teams news, you can put a request up and set a higher price that is currently available and another user may think you are wrong about your prediction be prepared to match your bet at the bigger price. For example how a betting exchange works. You and a friend are watching Chelsea vs Arsenal. You believe Chelsea will win, while your friend disagrees and believes Arsenal will win, while your friend disagrees and believes Arsenal will claim victory. He offers you odds of 2.00 (evens) that Chelsea wont win. You both agree to bet $50. if Chelsea wins, your friend pays you $50. but if Arsenal wins, you lose and pay up the $50 to your friend. In essence this how a betting exchange works, matching bettors with differing opinions on a given result who, via the exchange, make an agreement on both the stake and the odds.

The ability to both back and lay an outcome is one of the main interests of the betting exchange model, the flexibility for users to act as either bettor or bookie and its similar to a stock exchange, with traders buying (backing) and selling (laying) shares on event outcomes rather than commodities. However, understanding the terms backing and laying is as follows. When placing a back bet you are betting for an outcome to happen as stated earlier Chelsea to beat Arsenal. You only win the bet if Chelsea will win the match. Further, when placing a lay bet you are betting for an outcome not to happen and playing the role of the bookmaker- for example Chelsea will not beat Arsenal.

BETTING EXCHANGE DIFFERENCES TO A BOOKMAKER?

As a peer-to-peer platform, a betting exchange acts similar to a stock exchange, with users buying (backing) and selling(laying) odds on particular outcomes. Bet both sides of the market as mentioned earlier netting exchange gives the user the ability to both back and lay an outcome. This allows users to trade positions much like a broker would the stock exchange, assessing the market as the event is live in-play, while at a bookmaker you can only back. Best odds when betting with a bookmaker you can only bet on the odds they offer, which includes their margins-which can be as high as 20%, meaning they price markets in their favour with unfair odds, you can learn how they reduce your chance of win big when I will go deep to explain what is margins to you whilst in comparison a betting exchange offers more competitive odds, due to its nature as an intermediary peer-to-peer platform.

Simply the market is driven by supply and demand, which result in better odds compare to the traditional bookmaker. You are guarantee profit given the exchange allows you to back and lay, you can trade out, place a bet on the opposite outcome to a bet you have already placed. You can do this to guarantee a profit, reduce your exposure or cancel a previously matched bet on the same market. No account limits while bet restrictions are common with bookmakers, they vary across the industry, however, they are no specific betting limits on an exchanger, and instead the amount you can bet is determined by the liquidity meaning the amount available to bet in a particular market. Though, betting exchanges have disrupted the betting industry and are preferred choice for educated bettors. The big question is will it be the next big thing in Africa gaming space?

Article by Adeleye Awakan

Associate/Editor www.gbc.ng Africa’s leading digital gaming magazine. For consultant on gaming in Africa, Bookmaker’s review, Content, Advertising, and Thoughtful leadership article contact: [email protected]

About Post Author

Iwo Bulski

Issues related to the gambling business is engaged in more than 30 years. My empirical experience gives me the opportunity to present events and companies from this business with full knowledge and industry knowledge.

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Iwo Bulski

Issues related to the gambling business is engaged in more than 30 years. My empirical experience gives me the opportunity to present events and companies from this business with full knowledge and industry knowledge.