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Spotlight Now on Online Gambling Industry
Following the charging of Kieren Fallon with betting fraud, the online betting exchange Betfair has been put in the spotlight with industry players wondering and anticipating what will happen next.
Betfair's leverage from traditional bookies is the fact that punters get to bet not only to a winning horse but also to the losing one, which is known as "laying" a bet.
Betfair functions as the internet middleman, as it basically matches bets between punters with opposing insights.
Betfair makes money by taking a commission that is worth between two percent and five percent on all net winnings.
Backing to win is the ordinary and common way of betting. However, if anyone can become a bookmaker, then laying bets would indeed be a reason for doubt.
It is for this reason that big bookies like Ladbrokes, William Hill and Coral Eurobet, have argued that Betfair provides opportunities for corruption.
For its part, Betfair claims that backing and laying horses are nothing but two sides of the same market.
Further, according to Betfair, the online exchange has an audit trail that enables Betfair to identify all odd bets, like big wagers to lay a horse. This system essentially allows Betfair to ensure that racing is not corrupt.
Betfair, which effectively shifted the bookmaking paradigm, has grown to be a business worth 1.5 billion UK Pounds in the process since 2000.