I've been using Betfair for a long time now however it is only recently I've wondered how much does this company actually make? This question is what has compelled me to publish this article. I will not get copies with their accounts from companies house, the content will be all conjecture based on what I've grabbed while using the website over time.
(Image: https://live.staticflickr.com/65535/50312476907_76e99bca48.jpg)What has allowed me to ponder this question may be the transparency inside Betfair site. If you consider traditional bookies including WilliamHill, Ladbrokes or Betfred, that which you don't know on any particular sporting event 's what has become bet altogether and so on what particular outcome these bets were placed.
Take a regular Friday afternoon race meeting at say Ascot. It's the 2.30 and 5 horses are racing; the punters are logging to one of the traditional bookmakers websites and backing the many horses. The outcome is say the second favourite winning, we've not a clue whether individuals were backing the outsider or favourite, the amount was bet, and what are the profit the bookmaker made.
Now take into account the same race with Betfair. The total amount exchanged to the race is offered near the top of the page, this really is typically about A�200,000 for a standard horse race. Now we know that Betfair have a commission on all winnings, and then for sbobet every bet exchanged you will find there's winner, so they're taking their 5% regardless of the result - about A�10,000 in such cases.
So now for the quick little bit of 'back of fag packet' maths. Approximately 40 races a day generating A�10,000 are all A�400,000 every day one week every week, that's 2.8 million pounds per week. Throw inside bigger meetings and that rounds it to convey 3 million, 5% ones is A�150,000.
Now think about the Premiership football season. At least 12 games every week generating between A�200,000 along with a million pounds in exchanged bets, take the average and figure out the 5% commission and that's another A�350,000. On top of this there's the lower league and foreign games that has to generate another A�100,000 in commission so we're up to Half a thousand pounds per week in revenue.
Bear in your mind that you could (and the ones do) bet on everything, golf, cricket, tennis, boxing, champions league football, International soccer, not forgetting gaming. I'm beginning to visit in conclusion that they must be attracting weekly revenue inside the millions, and if it's only A�3 million a week, that's over 150 million annually.
I admit to using no clue if my workings are drastically wrong here, and if Betfair actually has annual revenue of A�1million or A�1billion. Neither do I have a solid idea of what their hips, IT costs etc add up to. What I do see is always that unlike traditional bookmakers the outcome associated with a sporting event does not have any touching on their revenue.
To this end their main aim will be to just recruit as much customers as possible, which poses the question; while using numerous online bookies around offering free introductory bets as high as as well as in excess of A�100, then how come Betfair only offer A�30. That could be the topic of my next article.