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How Does A Betting Exchange Work, And Is It US-Bound?

Sports betting has evolved massively in a few short years. Millions are now betting on football, tennis, F1, rugby, golf, and more online. As such, it was only a matter of time before the concept of a ‘betting exchange’ became popular.

But what on Earth is a betting exchange, anyway? What is it about the best betting exchange sites that punters find so appealing? Let’s take a look at this in practice – and whether or not US bettors can expect the standard in the years to come.

Betting Exchanges and Betting Sites: The Key Differences

The main difference to remember between traditional betting sites and betting exchanges is what you are putting money on. At a standard betting website or sportsbook, you are betting ‘for’ an event to happen. For example, you are betting on Tottenham Hotspur to beat Liverpool.

However, at a betting exchange, the markets operate the other way around. This means that you are effectively betting ‘against’ an event occurring. For example, you would bet on Liverpool to lose – perhaps by a specific amount.

This difference in betting types – back and lay, respectively – has led to a surge in ‘matched betting’. However, in any case, the exchange system remains a highly intriguing twist on the old standard.

There are some betting opportunities over in the US – but there’s no exchange system. Why is this, and how might an American betting exchange transpire in the near future?

Betting Exchanges and the US

Exchange betting may have swept across Europe, but it’s yet to make the same impact in the US. The reasons for this are varied, even if there are a handful of brands striving to make it work.

The main reason behind betting exchanges not yet making a mark stateside is to do with liquidity. Ultimately, betting exchange platforms require a certain degree of liquid cash to operate! As it happens, the betting pools available in the US right now simply don’t support it.

New Jersey, for example, is one of the most ‘open’ states concerning betting and gambling. Even then, despite Betfair having claimed license there, there are still no liquidity exchanges needed for confident running. Sadly, as of September 2020, Betfair left NJ due to poor results.

Beyond this, there needs to be a thirsty market. As it stands, betting exchanges are very niche in the US. The average bettor is used to back betting through a very standardized process.

What’s more, many bettors overseas expect bonus codes – and these don’t often arrive at exchanges. Ergo, it may be some time before America gets on board with ‘exchange fever’.

Is Betting on an Exchange Better?

There’s no explicitly correct way to place a bet. Back betting via sportsbooks and lay betting via exchanges carry specific pros and cons. As such, it’s safe to say both varieties attract different types of people – if not both!

Moving ahead, it will be curious to see what happens in the US. Could exchanges be commonplace there by decade’s end? Keep a lookout to find out.

Also Read: How Artificial Intelligence Change The Way We Play Video Games?

Tech Cults

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