In our recent educational articles we explained how the Betfair Exchange works and the differences between back and lay betting. One of the common misconceptions with Betfair is that it’s only for professional punters. That’s simply, not the case. Betfair is perfect for casual punters as well, and one of the reasons is the better odds you will often receive compared to the bookies.
How do Betfair offer such good odds?
Because Betfair is a peer-to-peer betting exchange, you are getting true odds that are set by fellow punters, not the odds that a sportsbooks dictates. Even the best Australian sportsbooks need to factor in extra margins into their prices to pay for their own expenses such as fees, taxes and other operating costs. It may not always appear obvious to casual punters, but you can compare the price of any sporting event to the price you get on Betfair to get a good indicator of whether you’re getting a good price or not.
So how do Betfair make any money?
Betfair charge a commission for every transaction, so it’s important to understand how the commission works and factor that into any price that you see on the exchange.
Each market has a Market Base Rate (MBR) which is the maximum percentage of your winnings that you will pay in commission once the market is settled.
For most sports and international racing markets, the MBR is set at 5%. However on Australian racing, the MBR is set at between 6% and 10% depending on the state and racing code.
The commission is automatically deducted from your winnings after the market is settled, regardless of whether your bet is a lay or back bet.
For higher volume customers, there are deductions from these rates, while extremely high activity on certain types of markets can attract premium or turnover charges. Head to the Betfair website for more information on these charges.
You’ll find that even when you factor in the Betfair commission, you’ll still often be getting a better price than the bookies, and that means more money in your back pocket!
Click on the banner below to sign up for Betfair today and give them a try!
