Some interesting quotes and comments in this article: -
After a decade of almost unchallenged dominance in the exchange betting market, Betfair has some serious competitors. EGR finds out who’s here to stay and why competition can only help the sector
http://egr.global/intel/insight/disrupt ... er-threat/
Is Betfair's exchange dominance really under threat?
V interesting and well researched/written article.
Betfair are losing key customers.
Next week at Cheltenham, a friend will be putting all Rails hedging, thru Matchbook (using API linked software), rather than use Betfair.
Its a drip, but a constant one .. bit by bit, I do see their grip losening.
Betfair are losing key customers.
Next week at Cheltenham, a friend will be putting all Rails hedging, thru Matchbook (using API linked software), rather than use Betfair.
Its a drip, but a constant one .. bit by bit, I do see their grip losening.
Interesting to know that you've already considered and want to do it.
I thought it would be a tremendously complex job to produce software to merge markets from different exchanges, with different market rules (such as non-runner deductions) and managing deposited funds. But I would probably have thought the same if the guys who launched Betfair told me about their idea before it was implemented.
I've always thought that if say BetDaq ever did become Numero Uno they would pull the same commission/charges as BF have.
I liken BF to Pokerstars, both leaders in their field. PS change their rake structure some time ago to huge uproar but as it only affected a small percentage of the player pool (ie the top winning players) they have virtually seen no downturn. The average punter/poker player just isn't affected and BF/PS know this.
I liken BF to Pokerstars, both leaders in their field. PS change their rake structure some time ago to huge uproar but as it only affected a small percentage of the player pool (ie the top winning players) they have virtually seen no downturn. The average punter/poker player just isn't affected and BF/PS know this.
Some remarkable quotes in there, not least:
“There’s very few customers who are solely using the (betfair) exchange........."
Of course, Betfair themselves have helped to promote just such a situation, as they openly admit: “It’s a fair criticism [that Betfair has deprioritised the exchange in recent years] and I can see how people would say that,” says Rich Hayward, the head of exchange pricing at Betfair.
The info in the article helps to explain the softening of Betfair's erstwhile ultra-hardball stance towards their own customers; lower commission offers on football and on Tuesdays, new form and video replays on the racing pages and their consultation with customers regarding the potential removal of in-play delays on racing.
However, one point where betfair might just have mis-judged the situation is with their '2% commission Tuesdays'.
This from the article:
Indeed Betfair’s own research with offers like 2% commission on the Premier League and ‘2% Tuesday’ on racing has shown that many customers are less price sensitive than expected. “It [price sensitivity] has not been as fundamental as you would believe it to be considering it’s been so prevalent as a message in the industry at the minute,” Hayward says.
Several reasons why I didn't avail myself of that opportunity, suffice it to say that I heartily welcome any genuine competition in the exchange space which helps to de-throne the arrogant behemoth which Betfair has become.
“There’s very few customers who are solely using the (betfair) exchange........."
Of course, Betfair themselves have helped to promote just such a situation, as they openly admit: “It’s a fair criticism [that Betfair has deprioritised the exchange in recent years] and I can see how people would say that,” says Rich Hayward, the head of exchange pricing at Betfair.
The info in the article helps to explain the softening of Betfair's erstwhile ultra-hardball stance towards their own customers; lower commission offers on football and on Tuesdays, new form and video replays on the racing pages and their consultation with customers regarding the potential removal of in-play delays on racing.
However, one point where betfair might just have mis-judged the situation is with their '2% commission Tuesdays'.
This from the article:
Indeed Betfair’s own research with offers like 2% commission on the Premier League and ‘2% Tuesday’ on racing has shown that many customers are less price sensitive than expected. “It [price sensitivity] has not been as fundamental as you would believe it to be considering it’s been so prevalent as a message in the industry at the minute,” Hayward says.
Several reasons why I didn't avail myself of that opportunity, suffice it to say that I heartily welcome any genuine competition in the exchange space which helps to de-throne the arrogant behemoth which Betfair has become.
- ShaunWhite
- Posts: 9731
- Joined: Sat Sep 03, 2016 3:42 am
It's something that's been done in the city for donkey's years. I was involved in integrating access to liquidity exchanges from dealing systems in the late 90s or early 00s, bit of a distant memory now as so much has happened since.
But.... It's a whole world of difficulty doing it for the current sports exchanges as there's no centralised clearing for settlement. You trade all day on BetLiqEx and happen to do all your backs at BF and all your lays at MB, where the hell is your money supposed to be? And you're talking millisecond settlement not the lazy hazy days of T+1.
I explored this when I first left the city and didn't get beyond feasible let alone to funding. Maybe it's doable now I dunno, I have a lot of ideas I never follow through, I'm too disorganised to be the next Elon Musk
What's needed is clearing for exchanges akin to the relationship between eBay and PayPal. Own both and just imagine watching that profit counter ticking over!
You would need a massive bank and a relatively small working capital if your bets are spread across several exchanges. Then there's fund management problems - image laying a big-time at 4.0, then trying to back it at 4.5 and finding you don't have the funds in the exchange that's offering the price.
Then there's the old arber's problem of different operator's having different rules!
Then there's the old arber's problem of different operator's having different rules!
- ShaunWhite
- Posts: 9731
- Joined: Sat Sep 03, 2016 3:42 am
Exactly, it's the next logical evolution. The only obstacle is the free flow of money to join the dots which is challenging but not impossible. I don't think crypto processing speeds would be enough though unless they go quantum
The real money is in moving money.
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- ShaunWhite
- Posts: 9731
- Joined: Sat Sep 03, 2016 3:42 am
That wouldn't be an issue if it was user-centric, the exchanges accessing your single funding pool sat at a clearing house, rather than your funds deposited with each of them. A completely new architicture bolted on to their existing operations, if they want in.
It's not a 5 minute job ... and not something to go into detail about at 4:55am