In this article, we will explore the difference between a Betting Exchange and a Sportsbook, and find out which one is the better option.
What are Betting Exchanges and How Do They Work?
Betting exchanges are becoming very popular among punters. On a betting exchange, you place bets against other punters, not a bookmaker. Exchanges make their money by taking a different percent commission of the punter's winnings, which might sound bad to you at first. You would see that despite the commission, there are definite advantages of using a betting exchange instead of a traditional bookmaker (Sportsbook). On a betting exchange, you can place a wager on the odds you wish, and wait for another customer to place the different bet at the opposite odds. If no punter places the opposing wager, you will get refunded. Thus, a betting exchange needs a high population to function without resulting in too many refunds and failed bets.
The Advantages and Disadvantages of Betting Exchanges
The most apparent advantage of betting exchanges is that it provides an unlimited number of possibilities. For example, you could place a match result wager with ridiculous odds, and if another person places the opposite wager, you could win or lose depending on the event. Our point is that no matter the bet type or market, as long as there is a player to place a bet with the opposite odds, you will get the opportunity to bet on the platform successfully.
Another significant advantage is that betting exchanges offer better odds because they don't take part in them, so the odds you find on an exchange are sure to be better than those you see on a bookie page. The risk or one of the disadvantages of placing unrealistic wagers is that there would be a smaller chance for your bet to be matched by another person.
A negative quality we could think of for betting exchanges is that they are hard to understand, especially for new customers compared to Sportsbooks, which have a more open concept.
Top Betting Exchange Sites
Betfair is the oldest betting exchange in the world (this may not be an exaggeration). They were the first to introduce the concept to the industry, and they improve it every day. We doubt that any other exchange would take away their title soon.
Smarkets are a newly found betting exchange. They have an incredible website design and are slowly climbing the steps and becoming one of the best in the industry. They charge a low commission price, and they have an excellent customer support team to help with any issues or questions.
BETDAQ is one of the first betting exchanges. It doesn't have as many customers as Betfair, but they still offer many possibilities. The betting exchange has a high rating of their online security, and it's owned by a high-rated brand with much experience in the sports betting scene.
Matchbook is an old exchange with famously low commission and a good reputation. They even offer their customers a Live Casino product to enjoy in-between wagers. They provide a substantial amount of sports on the exchange, but there aren't many niche sports available. At the moment, Matchbook is no longer licensed in the UK.
What are Sportsbooks and How Do They Work?
Sportsbooks are the traditional bookmakers you are used to. They layout a virtual or offline catalog (Sportsbook) full of sports and markets to wager on. The odds offered are different for each bookmaker, and each one of them has various benefits like features, mobile apps, or bonuses that they offer customers to keep them happy. Sportsbooks (bookies) make their money by taking a percent of the odds instead of players' winnings. That way, they aren't offering customers the “real” odds, which many people don't know.
The Positive and Negative Aspects of Sportsbooks
Sportsbooks are highly popular among punters and compared to betting exchanges, and they have more customers. The negative quality of Sportsbooks is that stuff like account closures and stake restrictions frequently happen, while on betting exchanges, they don't occur. An advantage of using a Sportsbook is that they offered customers regular promotions, and compared to exchanges, the number of promotions is higher, and their quality is better.
Bet365 is the most popular bookmaker in Europe with one of the largest Sportsbooks in the world. They offer a lot of betting options, especially for football events. They provide high odds on many markets and have unique features like Edit Bet, Bet Builder, and Cash-out. Use this offer to sign-up.
William Hill is a well-known UK bookie with over two thousand betting shops and a top-rated bookmaker platform. They provide useful features to their customers, and they have one of the top welcome offer & one of the best mobile apps in the industry.
Ladbrokes is an established bookmaker with many betting shops and a popular online platform. They offer many popular wager types and exciting features to satisfy their punters' needs.
Paddy Power is a bookie with a long history in the UK. They have many betting shops and a user-friendly online platform that is easy-to-navigate. They also provide many promotions for their existing betting customers that award them with various rewards.
People enjoy both betting exchanges and Sportsbooks. Choosing which one is better is impossible because both options have so many customers. On the one side, Sportsbooks are easier to understand compared to exchanges, and they offer many promotions to their customers. On the other hand, betting exchanges offer better odds and the ability to place any bet you wish without any of the usual stake or marker boundaries that go along with using Sportsbooks. We would give points to the exchanges, not only because they offer better odds but also because the idea behind them is innovative and they have a lot to grow in the future, so many people might choose to wager there instead of a traditional bookmaker.