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Betfair – From Start-up to World’s Largest Betting Exchange
Betfair is the world’s largest internet betting exchange offering betting options in a wide range of markets as well as financial spread betting, casino games and arcade games. The company is based in Hammersmith, West London, England. Since Betfair was launched in June 2000 it has become the largest online betting company in the UK and the largest betting exchange in the world. The company now processes over five million transactions a day from its three million registered customers around the world. The company employs approximately 1,200 people in the UK.
Betfair is a betting exchange as opposed to a traditional bookmaker. The company’s online exchange platform allows players to bet at odds set by other players rather than by a bookmaker. This differentiator has proved a competitive advantage as Betfair is often able to offer better odds than traditional bookmaker competitors such as Bet365, William Hill and Ladbrokes.
The company derives its revenues differently from bookmakers. It primarily earns money from commissions charged on winning bets. There are however, a number of other revenue streams including excessive use charges, premium charges for highly successful players, charges for data requests and, in some cases, for depositing and withdrawing money.
The company has successfully diversified its operations, moving from sports betting to offer casino games, arcade games and financial spread betting. The company has also expanded geographically and is now active in a number of overseas markets including Ireland, Australia and Malta. In 2010, around 50% of the company’s revenue came from markets outside the UK. The Betfair website is now available in 17 different languages.
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