BETTING EXCHANGES - MAKING MONEY AS A LAYER
Undoubtedly the most exciting opportunity of all, which betting exchanges have introduced, is the ability for the man in the street to lay results which he doesn't think will happen. This lets you, without applying for an off- or on-course bookmakers' licence and all the cost and hassle it brings with it, to set up your own betting stand and lay bets. No cost of buying a betting shop and paying staff; no cost of buying a pitch; no travelling expenses to the track for you: you go straight into action in a costless environment.
But the real beauty is that unlike a conventional bookmaker, you don't have to price up every runner. You identify the ones you want to offer and lay them accordingly, ignoring the others. The flip side is that the backers, who, like you, have to pay commission on their winnings, will be expecting to get a better price than they would with a conventional bookmaker. So, if a horse is trading at 9/4 at the track, backers are going to expect you to offer at least 5/2 before they will have a bet. This is fair and reasonable. The theory of punter-to-punter betting is that, in a bookie-free environment where it's punters versus punters on a level playing field, the best prices on offer should just about add up to a perfect book of 100% with no over-round. After all, why should the layers have a mathematical edge over the backers? We're all punters at the end of the day. However, in practice, a small over round offsets the volatility and greases the wheels of the market. Punter-to-punter betting while growing massively, is still in its infancy and is still heavily influenced by what's happening on course.
A final thought for you. Have you ever seen a poor Bookmaker ?? I didn't think so!
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