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Considering trying out a betting exchange in Australia? Then you’ll need to know all there is to know about them. Welcome to our handy guide where we’ll leave no stone unturned until we have every aspect of betting exchanges explained.
Are you a complete novice to betting exchanges? Or are you an experienced bettor looking for a comprehensive guide on where to find the best betting exchanges in Australia? Our online betting guide for Australia will teach you all you need to know about no risk matched betting and how to get to grips with placing back and lay bets.
A betting exchange in Australia allows players a dynamic way of placing wagers on sporting outcomes. Unlike general bookmakers, betting exchanges allow you to wager for or against an event happening. Fees are charged to you by the exchange for the privilege. Read on to have every aspect of betting exchanges explained, including whether betting online using a betting exchange is legal in Australia.
If you’re new to online betting, you may be unfamiliar with the term ‘betting exchange’. In many ways a betting exchange operates in a similar way to a bookmaker. Players visit the website and place bets on the outcome of a sporting event. If a player makes a successful bet they receive funds. If they lose their wager, they lose funds, too. But there are a few key changes between betting exchanges and normal bookmaker action.
The concept of a bookmaker is a simple one which has existed for many years. A bookmaker takes wagers on the outcome of an event happening, for example, the New England Patriots winning the Superbowl. They make the lay bet. A lay bet is a bet against an event happening. So the bookmaker in this case is betting against the Patriots winning. They offer their own funds up against the bettor. If they lose, they lose their money. If you lose, you lose your funds. If you’re looking to find out which bookmaker is the best for beginners in Australia, take a read of our CaptainGambling guide which tells you all you need to know about bookmaker services and how to know if you can trust them.
A betting exchange operates in a slightly different way. Every betting exchange, from the best betting exchanges to the worst work as a go between bettors. The betting exchange allows people to wager against each other with the betting exchange taking a cut as commission. To place a wager you need to find someone else who is willing to bet on the opposite outcome occurring. This is where the betting exchange comes in. It matches up pairs of bettors based on their wagers. So in the example above with the Patriots, player 1 would bet for the Patriots winning and player 2 would bet against the Patriots winning the Superbowl. The betting exchange will then extract a fee for setting the two parties up and processing the transaction. None of their money is ever on the line.
For those who are inexperienced with betting exchanges and how they operate, it may seem strange to say that you can bet against an event happening. You may even find yourself asking the question is online gambling legal in Australia when using a betting exchange?’ But don’t worry, we assure you it is, even if the concept seems odd.
A betting exchange in Australia is just another way of betting. Some people prefer a specific type of betting such as Asian handicap betting or matched betting. Others like the flexibility of placing lay bets instead of back bets. It’s all about giving the online bettor more choice, and with more choice comes a wider variety of bets to learn. Sometimes simple is best, right? So why not just use a normal bookmaker instead of a betting exchange?
There are lots of benefits of wagering using a betting exchange in Australia instead of a normal bookmaker. The best betting exchanges offer the same number of bets as the largest bookmaker, but they also offer some features that bookmakers can’t put up with. You see, because betting exchanges don’t wager their own funds there is very little risk to them. They’re the middleman placed in the center of a transaction rather than one of the opposing players. That means they can offer bets that most bookmakers wouldn’t touch at odds that wouldn’t usually fly at a licensed bookie.
Surely the odds at a bookmaker and a betting exchange are the same, right? Well, not exactly. With a betting exchange you are in charge. That means you get to set your own odds, and providing there is someone to meet your bet with agreeable odds then your bet is made. You’re basically there to match up with a betting buddy, like Tinder but without the walk of shame afterwards.
Yes, you read that right. Have you ever visited a bookie’s site only to have your bet shut down because of bet cancellations? What about fund restrictions, particularly if you like matched betting? It’s annoying, but it has to happen for a bookmaker to protect their business. But a betting exchange doesn’t have to worry about things like that. They’re here for a good time AND a long time. They just like to hook two people up with mutual betting needs and watch the events unfold...that sounded a bit creepy, right?
But we digress. Because a betting exchange doesn’t have anything to lose by allowing bets to happen, you can wager without limitations. Back bets, lay bets, high odds, low odds (though why you’d want to do the last one we don’t know). The choice is yours.
We’ve mentioned the word ‘fees’ before, so what are you charged for using a betting exchange? Well, betting exchanges need to make their cash somewhere. That comes from the fees they charge for wagering through their services. Most betting exchanges, even the best betting exchanges charge commission fees for a player’s transactions. How large a fee they’re charged depends on a number of factors including where the bet is located. Many betting exchanges charge fees based on the net value of Australasian events, for example. The average commission price is 2%, which for a $100 bet works out at $2.00. Some betting exchanges waive their commission fee for the first year as a form of welcome bonus. This is a great value deal which makes a palpable difference to the betting balance of a registered player. Just remember to write down the date that the commission-free period comes to an end, otherwise you may get a nasty surprise the next time you wager.
Some betting exchanges also charge fees on accounts that are left unused and dormant for a year. Expect to be charged around $10 if this happens to your account. It’s worth logging in, even if it’s just for a quick matched bet rather than letting your account stay unused for 12 months. Just signing in should avoid any charges that may come.
Matched betting is a form of betting that players use to earn cashback from their existing bets. It works by placing a lay bet and a back bet on the same sporting event at odds that are roughly the same. It is used to profit from the free bets given by bookmakers on sign up and at periodic occasions during their time as a customer.
To take part in matched betting a player needs two things, a bookmaker balance and a betting exchange account. The player then places a bet using their balance on a sporting result occurring. Let’s say for example we’re betting on Man United beating Manchester City in the English Premier League. We choose a bookmaker promotion that gives us a $20 free bet in the event that we meet certain betting conditions. We place our funds on Manchester United winning the match.
Then we go to a betting exchange website and place a bet on Manchester City winning instead of Manchester United.
If Manchester United wins you’ll receive your stake x odds at the bookmakers site and you’ll pay the liability to the betting exchange. If, however, Manchester United loses you’ll lose your stake at the bookmaker and receive your back stake minus commission at the betting exchange. Whatever the outcome of the bet, we’ve earned a free bet to continue the betting process with.
We’ve reached that part of our betting exchange guide where we drop some facts and information on you. That’s right, it’s our betting exchange FAQ where we aim to answer all those nagging questions you may have relating to wagering using a betting exchange. Are you new to betting online using an exchange? If so, this is a crucial place to focus your eyes and learn all there is to know about betting exchange wagers.
Commission fees are charged to all users of a betting exchange as this is how the exchange earns its income. Betting exchanges are the middlemen in a transaction between two opposing players. One backs an event, the other lays an event (bets for and against an event happening). They do so using their own chosen odds and the betting exchange acts as a facilitator. They charge a small commission of around 2% for this service, but new players will often be exempt for a year thanks to online promotions.
No, quite the opposite. Betting exchanges jump through the same legislative hoops as normal Aussie bookmakers while also ensuring that your financial data is safe. They’re not only the middleman, but they’re the guy you can count on to hold your wallet and not take a peek inside.
As well as back and lay bets, players can take advantage of a wide range of less common bets such as Asian handicap bets. What is Asian handicap betting? Asian handicap betting is where you can place a wager where one team or player is given a handicap to make the bet more interesting. Let’s go back to our earlier footy match Manchester United vs Manchester City. Let’s imagine that Manchester City have been on a winning streak and Manchester United have been on their uppers for several weeks now. The odds would usually reflect that Manchester City had a much greater chance of winning against United because of their recent form. In Asian handicap betting, Manchester City’s odds may be changed to reflect a 1-0 lead to Manchester United to make the game more interesting. So to draw, Manchester City would have to score one more goal than Man United in real life for the wager to pay out. Confusing? A bit, but fun, oh yes!
Yep. Most betting exchanges allow you to place usual ‘back’ bets on their site. These are sometimes available in the exchange itself, although sometimes a betting exchange will also have a ‘normal’ sports betting page which is commission free and allows players to place back bets.
Besides the fact it’s fun? Well, one thing we can tell you about is the number of people wagering online at once. There are so many people in the betting hive that odds can change quickly based on the sheer number of wagers. But this is all part of the fun of online betting. Odds can be unpredictable, so if you see a rate you like, lock it in quickly!
The best betting exchanges in our opinion are the ones that allow players a level of freedom they don’t often find at traditional bookmakers. Not only do betting exchanges usually offer the option of placing a lay bet, but they also allow players to choose their own odds. This is something that is seldom seen outside of betting exchange circles, but works so well because players wager against each other, not the house. This allows players to judge their own level of risk and still allows the betting exchange a profit through commission.
We think it is. For more information on how to use a betting exchange read our betting exchange in Australia article which describes everything you need to know about betting using an exchange..
Some betting exchanges do. The best way to find out whether a betting exchange charges a fee and whether it’s among the best betting exchanges in the country, be sure to read their betting terms and conditions. You can also take a look at our betting exchange in Australia guide for more information.
Placing a wager with a bookmaker’s website is a fun thing to do, but if you want to wager against an event happening or you want the freedom to create your own odds you’ll need to check out our betting exchange guide for more information.
While wagering on games of chance in Australia is illegal, betting using a betting exchange is perfectly fine as there is an element of skill to it. We recommend researching as much as you can on betting exchange wagers to make the most of your betting funds. We’ve got our own betting exchange guide which gives comprehensive information on how to get started with lay betting..
It’s important to check a betting exchange’s information pages to find any fees and commission charges a betting exchange may charge. Most do actually charge a betting exchange inactivity fee, so be sure to check the small print of your chosen betting exchange to see if this is true for you.
Above all the Captain demands transparency — and he gets that by seeing over the production of brutally honest bookmaker reviews. Only through constructive criticism will he weed out Dodgybookie and his evil bookie cronies.
Chances are you’re about to lose. For free and confidential support call 1800 858 858 or visit gamblinghelponline.org.au 18+
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