In New Zealand the bulk of online sports betting wagers are placed at traditional internet-based sportsbooks. However, this is not the only way to make money from making a prediction online. More and more punters are turning to exchange betting as another way to win big and meet their needs. While the phenomenon has certainly grown, there are plenty of people who still don’t know how exchanges work and why they are so popular, so we’re going to tell you more.
Exchange betting is also referred to as peer-to-peer, which is a more accurate way to describe this style. With traditional wagering, the bookmakers and online sportsbooks will post the various bets on each event, and pay out any winnings to the punters. With an online exchange, all of the wagers are placed between the public themselves through the site.
The process is similar to that of traditional online sports betting. Firstly, punters must sign up with a site that offers this functionality and transfer funds into their account. The big difference comes in with the actual punting part as there are two main types of bets that can be placed; these being lay and backing punts.
Backing a bet means that you are predicting a certain outcome. For example, you might place a backing punt on Rafael Nadal to win the Australian Open at odds of 4.00. This style of punting is similar to the traditional type, except in this case, you don’t have to accept the odds already posted. If you want to, you can create your own punt at the desired odds and see if anyone is interested in laying it.
The most defining characteristic of this type of betting is being able to lay a bet. This means that you take on the role of the traditional bookmaker. By opting for this, you are saying that the proposed outcome will not take place. If you were to lay using the Rafael Nadal example given above, you are saying that in fact he will not win the upcoming Australian Open, someone else will. However, if Nadal does win, you will pay the backer the agreed odds.
The Role of the Exchange
The role of a peer-to-peer site is to act as a medium for the process. While they do not actually partake in any the online sports betting wagers or odds making, they do take a percentage of any winning bet. With this option, a punter can either choose to accept a wager that has already been posted or to create their own. When a punt is won or lost, the site automatically transfers the funds from one account to the other, once the outcome is finalised.
Laying is sometimes easier as it narrows down the results to a win/no win situation. This is especially useful with horse racing. If you were to lay on a particular horse, you are saying that any other horse in the field might win, except for this one. If you post reasonable odd, someone might just back the horse and it doesn’t win, you get the stake minus the site’s fee.
This format may be different to punting as you know it, but it can be very rewarding and deserves some consideration, as it has plenty to offer.