Sports betting has undergone a transformative shift in recent years, aided by changing regulations and advances in tech.
Sportsbooks, both on and offline, have long dominated the space, offering fixed odds on various events. However, the rise of online platforms and mobile applications has introduced a more profitable and interactive experience.
One notable addition is the recent emergence of betting exchanges, which offer an alternative model to traditional sportsbooks.
A betting exchange is a platform that pairs up individual bettors, enabling peer-to-peer (P2P) betting.
Whereas an online sportsbook operates a model where they set fixed odds and bettors place wagers against them, a betting exchange facilitates direct bets between users. There is no middleman.
Instead, one user acts as the backer and the other acts as the layer. The backer places a bet for a specific outcome and the layer accepts the bet, essentially saying that the opposite outcome will happen.
Betting exchanges have gained popularity due to their potential for higher returns, increased market transparency, and the ability to trade bets in real-time.
We’ll look at how betting exchanges work in a bit more detail in a moment, but first, we’ll quickly cover some of their key features and benefits.
The specifics of betting exchanges can differ from provider to provider, however, they all generally tend to share a few common features. Here are some of the most important to be aware of:
On a traditional online sportsbook, all bets you place will fall under the category of back bets. This is where you bet in favor of an outcome. However, betting exchanges offer an alternative…
Betting exchanges introduce the concept of hedge bets, allowing you to bet against an outcome. This dynamic enables the exchange to match players with opposing views by pairing back and hedge bets on the same event.
So one bettor can back Team A to win and another will lay the same bet by betting on Team A to lose. The betting exchange then matches these bets so that both sides are covered.
If the back bet wins, the person who placed the back bet receives the stake from the opposing player who placed a lay bet. If the back bet loses, the player who laid the bet receives the stake.
Now that we know what a betting exchange is and how it works, it’s time to look at what you can do with it to earn serious cash…
Matched betting is a clever win win betting strategy which allows bettors to maximize their profits and minimize their risks by covering both potential outcomes of a sporting event. Coupled with sportsbooks’ promotional offers, this strategy can see individuals making $1,000s every month.
Betting exchanges are a fundamental part of the matched betting process across Europe, but what about here in the US?
With a limited number of exchanges available in the US up to now, unless you live in a state where betting exchanges are available, the matched betting process here typically involves using two sportsbooks to place the opposing bets. Either way, the process still follows the same four overarching steps.
The betting exchange landscape is still relatively small in America when looked at in comparison to the number of online sportsbooks. However, things are changing all the time, with new betting exchanges regularly entering the space.
Here are the betting exchanges currently available in the US:
And here are the betting exchanges set to launch in the very near future:
Betting exchanges, an alternative to online sportsbooks, are transforming the way we guarantee profit from matched betting.
While betting exchanges are integral to matched betting in Europe, limited availability in the US has meant a different approach. However, that looks set to change as more betting exchanges enter the space.
ProfitDuel’s software, including the Dutch Matcher makes it easy for you to do matched betting using an online sportsbook and a betting exchange. For example, you can use the tool to find and sort the best matched betting odds and then place a back bet via an online sportsbook and a hedge bet via a betting exchange.
Let us know if you've got any questions or start your premium membership for half the price (first month) to give matched betting with a betting exchange a try.