Betting Exchange moves to 2% Commission on Baseball

Woody0 · Jul 5, 2004

The betting exchange Betonbet has just lowered their commission on winning baseball bets to 2%. While this gives them a gross margin of 1% they must have made the move in the hope of increasing volume by at least 2 to 3 times. Even though these are thin margins, the bettor has a level of security in the fact that the exchange is merely a clearing house and does not put its own money at risk.

Betonbet has an English bookmakers permit and is subject to English law.

My relationship is that of a new client. I joined a few weeks ago and have not yet built my account to a level where I want to withdraw. The exchange uses Moneybookers as well as credit cards. Liquidity is variable but there is often $500-$1000 available to bet on sides.

Railbird · Jul 5, 2004

Do they accept Americans?

Woody0 · Jul 5, 2004

No.

"2.7 You can not register or make use of the services on this website if you are based in any area which forbids the use of the types of services which the company provides, i.e. USA and Holland."

OMNIVOROUS FROG · Jul 5, 2004

It is just a matter of time...Best Wishes...OF

Already asked the wife about moving to Vancouver/Victoria. Nope, have to wait for them to come to FROG...

WildBill · Jul 5, 2004

This is like what everyone says about the Nevada companies and offshores. You give up these early years where relationships and organizational depth is built without being able to compete and you may never have a good shot at the market. I think if the exchanges really were to make a huge dent in the business with American bettors they have to do it right now otherwise they may be mostly shut out for a long time. Anyways part of the allure of the exchanges is that people in other areas love soccer and horses, two rip-off deals skewed heavily to the bookies. We already have very low vig available to us and exchanges aren't going to cut into that very much. They might have slightly lower prices, but most people will pay extra for the convenience of being assured of always getting a bet at the listed price when they log in.

scarab · Jul 5, 2004

i dont like Moneybookers...prefer tradesports for betting exchange

OMNIVOROUS FROG · Jul 5, 2004

They might have slightly lower prices, but most people will pay extra for the convenience of being assured of always getting a bet at the listed price when they log in.

I like this part of your story Bill, the rest is propaganda. They might have lower prices. No kidding? But most people will pay extra? Stop, right there. I am very cynical there. I would like to see a show of hands who here at the forum is in this "most people." Certainly not me. Assured of getting listed price when they log on. You lost me here. The amount available is right there on the exchange. It might even be more than you can get elsewhere. And it will be the best available with that low vig, one side or other. I get my position against someone who has an opinion. At that juncture, it does become FROG vs. Mr. Opinion. Mr. Opinion normally is way out on a public play, even worse chasing. I guess the people who grease you do not have any exchanges. I can't get any, so we are both wasting our posts...Best Wishes...OF

Woody0 · Jul 5, 2004

Liquidity varies with the sport. It was fascinating watching live action Betfair during the Euro games with amounts well in excess of $20,000 being flipped from back to lay at odds of 1.81, 1.82, 1.83, etc. You can certainly see the depth of the market and if you wager at that level the market certainly exists for some betting options.

Besides you can't always get the listed price at the books. One night I placed a tennis bet at William Hill and the limit I was allowed was $20 and cents. While not a big bettor I'm a little above the $20 limit. After my email query the next day I got the sense from their reply that they put up a certain amount at a particular price and I got in late when it was mostly gone. They did say I could phone and they would increase the limit. Seems there is no-one minding the store overnight and for Wimbledon I need to place my bets before retiring since I don't get up at 4 am Pacific.

WildBill · Jul 5, 2004

Exactly OF. You go to an exchange on Tuesday for the weeks upcoming NFL games and the lack of liquidity will kill you. All there will be are people trying to be bookmakers dealing out both sides. If you want liquidity and good prices in the big exchanges you have to go in the last 12 hours before the event goes in the case of soccer or the last 5 minutes in the case of a horse race. I can't make bets at 3:30pm Pacific time on a workday, yet that is when the market and the favorable pricing would be available to me. And that is just natural because to be a bookmaker means taking on some risk to gain volume. On an exchange most of the people that aren't trying to be bookmakers are going to feel the urge to put out silly prices up until it gets close to game time and they face the prospect of not getting action. So yes, you are right there will always be a price, but not always a price the player would want. And once again I am talking about the average player, a guy who probably won't shop much to try to pick up an extra couple of cents on a play. A sharp or a scalper of course will hunt for those pennies, but they aren't the key to an exchange surviving.