With the advent of the internet and the emergence of blockchain technology, betting exchange sites are gaining more widespread popularity than ever before. Bi now, one can find an extensive list of betting exchanges available on the web, each offering a unique betting experience that is predominantly distinguished from that offered by the traditional sportsbooks and conventional betting sites.
But what are the main actual differences between sites functioning as betting exchanges and online bookmakers? Which one is better for you? And which one should you eventually choose for your betting game?
How Do They Function?
Well, first of all, betting exchange sites are different from online sportsbooks in that they are decentralized and they operate without the intermediation of a party that participates in the betting transaction. What top betting sites in the Philippines and everywhere else around the globe actually do is accept bets of their users by taking an opposite side.
Simply enough, they lay on bets that users back – a backing bet is a bet on something happening, whereas a laying bet is a bet on something not happening. For every bet that punters find in the available betting markets offered by betting sites, the opposite bet is assumed by the bookie.
This doesn’t happen in the case of betting site exchanges. Instead of having to bet against the house, bettors bet against each other. One bettor places the back bet and another one places the lay bet. The betting site exchange provides the platform – that is the designated space – wherein the matching between bettors takes place. So, betting exchanges and online bookmakers differ fundamentally in their function and operations.
Difference In Odds
Now, let’s take the issue of price. All bookmakers, when we are talking about sites offering online betting in the Philippines, provide odds for specific markets and in these odds they have factored the so-called vig, which is the built-in profit. Betting sites and sportsbooks in general are not charities. They operate to make a profit and so they integrate their profit to the odds so as to ensure that even if the customer wins, they will continue to generate earnings.
Betting exchanges don’t set odds. The odds are set by the users. So, the odds are always better, which means that bettors have more chances of making greater profit if they win. Betting exchange sites actually make money from getting a commission on the winnings.
Although the odds are better in the case of betting exchanges, in the end it’s not quite certain whether as a user you are better with one or the other. In the first case, the profit that they make is factored in the odds while in the second case, if you win there is a commission to be paid to the exchange site. So, you need to compare actual rates in order to be able to tell which is best for you.
It is almost impossible to find a traditional online sportsbook which will allow you to bet any amount of money you want on a market. That’s because bookmakers want to protect themselves from sharp betting and generally shield their profits. So, they have limits to betting and these limits become more narrow when players record serious winnings or consecutive, big winnings.
In the case of betting exchange sites, these limits are not actually applicable. Bettors are able to wager large amounts of money and make big bets if there is a corresponding lay bet that is matched with their back bet.
These three points of comparison are enough -at least for the beginning – to give you a better picture of what each of the two stands for and this way help you make a decision on which one suits best your needs and preferences. Both have advantages and limitations so you need to evaluate each one separately before you make your final choice.