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How to Start an Online Betting Exchange like Smarkets?

How to Start an Online Betting Exchange like Smarkets?

As the way internet transformed the gambling world, arrival of betting exchange like Smarkets prospers the online betting market and leads to an advanced dimension of betting. Influx of betting exchange platforms like Smarket has become a threaten for the traditional method of betting and appears as a significant challenge to its long-term profitability. This is because, these types of sports betting exchange model appears as a boon for the punters who has been awaiting for something better than the traditional method.  
 
As a result, this peer-to-peer betting exchanges experienced an incredible rise in the popularity with attracting the punters through its cutting edge technologies and makes them to feel as this astounding betting exchanges are much better than the regular betting.
 

What is Betting Exchange?

A Betting Exchange is an online platform through which users can place bets on the outcome of sports games, politics and other discrete events. It is a fluid marketplace where the users can bet against each other. Well the concept of betting exchange is simply incredible and much effective. One the major advantage in betting exchange is that it allows the punters to bet against each other rather than betting against bookmaker with the fixed odds. 

What is Smarkets?

Smarket is a betting exchange platform founded by Jason Trost and Hunter Morris in 2008. It is a peer-to-peer betting exchange, enable the users to make odds between themselves. They can offer odds to anyone, or can receive request odds from any bettors. It allows the users to make bets on variety of sports and other political markets. Smarkets also offers betting on current affairs and popular cultural events. One of the major benefit in Smarket is that it provides an exciting and fairer way for the users to place their bet on sports, politics and other events.

Types of Betting in Smarkets:

Here is the list of betting types that can placed by the punter in a betting exchange like Smarkets
 
1. Arbitrage Betting
2. Each-way Betting
3. In-Play Betting
4. Handicap Betting
5. Asian Handicap Betting
6. Over under Betting
7. Head-to-Head Betting
8. Ante-post Betting
9. 1X2 Betting
10. Draw No Bet Betting
 

Sports Betting Models Offered in Smarkets:

Almost every sports events and games will be primarily listed in a betting exchange. Here are some of the sports listed that are available in the Smarkets.
 
1. Soccer
2. Cricket
3. Rugby union
4. Tennis
5. Basketball
6. Baseball
7. Motorsports
8. Mixed martial arts
9. Hockey
10. Golf
11. Football

How Does an Online Betting Exchange Like Smarkets Works?

At the initial stage, users feel frighten among the betting exchange. But once knowing its working and the difference between the traditional bookmaker, they would find an excess of opportunities to make profit. Well the major difference between the betting exchanges and bookmakers is they allow lay betting. That is they can also select lose rather than win.

Generally, betting exchange provides an online marketplace for users and pairs the bettors to make bet against each other. They charge a small amount for allowing them to connect in their platform from their betting amount as their commission. Smarkets charge 2% commission on net market from the winning profit only.
 
Instead of being limited to the odds set by bookies, and only having an option to back the result, the betting exchange facilitates users to go head-to-head against each other and create their own markets - one backing and one laying.
 
Betting exchange like Smarkets facilitates the users to place head-to-head bet against each other and to create their own betting either with backing or laying rather than with limited odds set placed by bookmakers.

What is Back Betting?

Back betting is nothing but betting on an outcome to happen. It is a type of betting in which you would put your money on something that would happen. For instance, if you place a Back bet on a team or a horse that would win by predicting. If your chosen team or horse wins, you will win the bet. Users will pay a small commission all their winning bets to the betting exchange.

What is Lay Betting?

Lay betting is a type of betting on an outcome that would not happen. It means betting on something not to happen. For example, in lay betting you will make your bet on a team or horse that would not win. Your will win bet if the result is either your opponent wins or draw.

Different Betting Odds Format in the betting exchange:

Betting exchanges and bookmakers provider number of different odds formats so that bettors can compare odds across providers irrespective of format and discover where the best value is. 

Decimal Odds: 

Decimal odds format indicates the potential return of a bet including the stake. Decimal odds are simple and easiest format to compare prices between the exchanges and bookmakers.
 
Calculating the decimal odds are simple. All you should do is multiply the offered decimal odds with the betting amount you wish to bet.

odds * stake = return (Including stake)

Fractional odds:

Fractional odds are majorly utilized in horse racing and it the most popular in the UK. This odds will display the amount of profit you would receive for a winning bet relative to your stake. Due to the difficulty in comparing the fractional odds against other odds, it is becoming less favoured. 

American odds:

American odds are expressed with either a negative or positive number. It is also known as US odds or money line oods. Well the positive number represents how much you would gain if you bet £100 and the negative number shows how much you should make your bet to gain £100.
 
Formula to find a return on a negative money line:
 
(100/negative money line odds) * stake
 
Formula to find a return on a positive money line:
 
Positive money line odds * (stake/100)

Essential Key features for a betting exchange platform:

Features will always plays a lead role in a success of any online platform whether it is a website or a mobile app. Here are some must have features for a betting exchange platform are listed
 
1. Appealing UI & UX design
2. Live streaming
3. Multiple language integration
4. In-app betting
5. Match Scheduling

 

Features for User Panel:

1. Create a user profile
2. Social media login
3. Choose betting category
4. Guide for new users
5. Push notification
6. Internal communication
7. Multiple bets
8. Players Stats
9. 24X7 system

Features for Admin:

1. Login
2. User profile management
3. Manage user payments

Why to build an online betting exchange like Smarkets?

A report from United kingdom Gambling commission claims that online betting exchange carries a market share worth more than £370m in 2019. These number are just a tiny share of the traditional sportsbooks. The growth rate is raising enormously and its keeps on growing every year.
 
One of the most important reasons for this immense growth of betting exchanges is their unique nature of allowing the bettors to place their bet according to their wish by offering multiple options. Moreover, betting exchanges like Smarkets provides attractive bonuses and promotion for the new users to make their initial betting exchange without risking their own money. This is the major reason for their financial success.
 
As the world is moving towards online platform in these days, observing colossal success in these types betting exchanges won’t be a big surprise. Moreover, with diving into these type of betting exchange business, you can grab customers from worldwide as there is no restrictions in online. Your Betting exchange will have world-class audience across all the countries and so your profit will be much. So going with these kind betting exchange platform development is much appreciable if you are looking to make millions in short span of time.

How to Earn Money From Online Betting Exchanges?

Usually betting exchanges makes their earning by charging a small amount from the bet winner as their commission. Most of the betting exchanges like Smarkets, Betfair generates revenue using this method. Well the percentage of commission differs from each other. For example Smarkets charges the industry low commission of 2% and the Betfair charges a commission range from 2-5% from the winning customers after each events. You can follow the same method by fixing your convenient percentage of commission to generate revenue in your betting exchange platform.
 
Apart from this, you can also earn by showing advertisements to your users in your betting exchange. This is the most common method used in the major website and mobile apps.

What Will Be the Future of Sports Betting Exchange?

Without doubt, there is bright future for betting exchanges. Today, people across the world are recognizing these betting exchange and focusing on the key benefits in it. As a result of this, count of betting exchanges entering the market is growing steadily. Once betting market was dominated with limited key players like Smarkets, Betfair and now the number of players are increasing. The most important one is everyone is generating higher revenue which shows the demand of the market.

Start Your own Sports Betting Exchange like Smarkets:

After coming across the above amazing facts and knowing about this emerging betting exchange market, you would conclude to dive into this long lasting sector with a powerful betting exchange platform . If that so, we, MacAndro a leading sports betting game development company is here to aid you achieve your dream. Being a reputed and recognized betting exchange platform provider across the globe, we provide top-class betting exchange like Smarkets that can launched as both mobile & website with extreme quality integrated with the most advanced features and latest technology.

GET FREE QUOTE!!! 

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Disclaimer: MacAndro neither represents nor has command over the trademarks of "Smarkets". We are not doing any promotional activities for them and we use these terms only for understanding our products. Our motto is not to harm any organization or individual.

About Kishore

Hey! I am Kishore, a creative technologist and blogger at MacAndro, an explorer of all the latest mobile technologies in this contemporary world. You can cheer up with all my enchanting intelligence towards diverse sectors. With my modern calligraphy, you can acquire peculiar key tips for your further proceedings. Be in touch to capture my regular blog updates across all the business modules.

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