Betfair

Betfair is a revolutionary gambling platform that pioneered the concept of the betting exchange. Unlike traditional bookmakers where you bet against the house, the Betfair Exchange allows users to bet against each other. This enables players to "back" a selection (betting it will win) or "lay" a selection (acting as the bookie and betting it will lose), often resulting in better odds than traditional sportsbooks.

Because Betfair charges a commission on net winnings rather than building a margin into the odds, the pricing is generally more favorable for the bettor. It is a favorite among professional gamblers and traders who use it to hedge positions or arbitrage markets. Betfair also operates a standard sportsbook and online casino, but the Exchange remains its flagship product, offering unparalleled market depth and liquidity.

Frequently Asked Questions

1. What is the difference between backing and laying?

Backing a selection means you are betting on an outcome to happen, just like a normal bet at a sportsbook. Laying a selection means you are betting against that outcome happening, effectively acting as the bookmaker who accepts someone else's bet. If the selection loses, the layer wins the backer's stake.

2. How does Betfair make money?

On the Exchange, Betfair does not care who wins or loses; instead, they charge a commission fee on the net winnings of the market. The base market rate is typically 5%, but this can be reduced for active users who accumulate "Betfair Points" through regular trading activity. There is no commission charged on losing bets.

3. Is Betfair legal?

Yes, Betfair is fully licensed and regulated by the UK Gambling Commission and the Malta Gaming Authority, making it one of the safest betting platforms in the world. It operates in many countries globally, although the Exchange product is restricted in certain jurisdictions like the United States (except for specific horse racing products via TVG/FanDuel).

4. Can I trade positions?

Yes, Betfair is ideal for trading because you can back a selection at high odds and lay it later at lower odds (or vice versa) to lock in a profit regardless of the final result. This practice, known as "Cash Out" or "Green Book," is a core strategy for many professional Exchange users.

5. What is the minimum stake?

The minimum stake on the Betfair Exchange is typically £2 (or currency equivalent), which makes it accessible for casual bettors. However, the platform is robust enough to handle stakes worth thousands of pounds, providing high liquidity for high rollers on major sporting events.