Smarkets to deliver high-volume, low-margin sportsbook

Post Reply
User avatar
jamdog
Posts: 33
Joined: Wed Sep 20, 2017 10:34 pm

This article is behind a paywall but it's a very interesting development. Hope it does well.

https://egr.global/intel/news/smarkets- ... portsbook/
CEO Jason Trost says the firm aims to prove there is “no difference between an exchange and sportsbook” Brad Allen 29 June 2018 EmailPrint Share

Smarkets CEO Jason Trost has pledged to deliver a high-volume, low-margin sportsbook in the UK and US markets, EGR Intel can reveal. The Smarkets sportsbook, first mooted back in February, is set to be launched in the UK in the next couple of months, with prices drawn directly from the exchange but presented in a…
spreadbetting
Posts: 3140
Joined: Sun Jan 31, 2010 8:06 pm

They've been saying they'd open the public API for the last 8 years so I'd imagine their timeframe of a couple of months might be a little optimistic.

Hard to see where they're going to get the volume needed to accommodate a high volume/low margin sportsbook especially for markets like horse racing. Firms like Pinnacle have proved you can run high volume, low margin sportsbooks but they're prepared to take a stance on the outcome, Smarkets don't seem to have the know how or balls to follow that model as far as I can see.

The problem they'll have , the same as all the other innovations in betting, is that you need to attract the mug money and mug money is, thankfully, never price sensitive.
User avatar
Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

This is what Betfair initially did when the launched their sportsbook. But as we saw that turned out very differently eventually despite many promises. What was positioned as a drive of exchange business just turned into a cash cow that wasn't even linked to the exchange? Remember "Price rush"?

It seems that joe punter is driven my many things, but not value.
User avatar
jamdog
Posts: 33
Joined: Wed Sep 20, 2017 10:34 pm

I am significantly less excited now. :geek: Getting my UK accounts shut down was the main reason I quit betting for some years.
User avatar
northbound
Posts: 737
Joined: Mon Mar 20, 2017 11:22 pm

There are signs that Smarkets will apply a 20% "premium charge" to API users, according to an email received by a user.

https://bit.ly/2L3hGHb
spreadbetting
Posts: 3140
Joined: Sun Jan 31, 2010 8:06 pm

Not a surprise, I guess the guy was beating the market makers
Hi XXXXXX,

We monitor traffic and it appears the number of requests made by your account is far above that of a normal web user. Making numerous requests per second is activity that is more akin to an API user and the web interface is not designed for the level of activity we are seeing from your account.

As an alternative, we are willing to allow you access to our API. Please note that your trading through the API will not be subject to our standard 2% commission on winnings structure, but instead will be priced according to a net profit and loss (P&L) calculation. The fee will be equal to 20% of your net lifetime P&L, as calculated by Smarkets.

Please note that our web interface is not designed for such high level of activity we were seeing on your account, therefore, if we are unable to agree with the above terms we will be unable to allow you to continue to use our exchange.

Let us know if you have further questions.

Kind regards,
Edgaras
User avatar
ShaunWhite
Posts: 9731
Joined: Sat Sep 03, 2016 3:42 am

Mixed feeling about exchange competition. Might be better the devil you know. I'm not sure if I want...

a) One mega exchange, big markets, one api..... but slightly unfavourable terms, or
b) Multiple exchanges, smaller markets, multiple apis and everyone's terms being different though slightly better.

Software would be an issue too, bf api usage rules stop vendors accessing multiple exchanges as it is, others would have the same protectionist approach. I can't see BA (or others) maintaining 4 or 5 different exchange versions. They might not need to though if these of these new exchanges provide their own frontend software like https://www.tradefair.com/. It seems a good way to attract and keep customers.

Or it becomes survival of the fittest, one exchange dominates, and we're all back to square 1. The jury's out still for me.

--------------------------------
btw does anyone here use TradeFair? I had a play with it last year and it seemed pretty good.

Features:
Auto-trading - choose from hundreds of pre-built algos and strategies
Enjoy our most comprehensive charting package to date
Code your own trading systems in the Tradefair Pro Development Studio
Improved connection strength and execution speeds

Take advantage of comprehensive charting...
Tradefair Pro delivers fast, lucid charting results, allowing you to analyse and annotate charts with more accuracy than ever before.
Deal through charts to react even faster to dynamic markets.

Choose from hundreds of built-in trading strategies...
Tradefair Pro comes with a huge variety of auto-trading strategies and technical indicators to compliment your trading plan.
Whether you're short-selling, hedging or day trading, there's a strategy to suit your style.

...Technical indicators and alerts...
The platform includes hundreds of technical indicators and alerts, so you need never miss a trading opportunity again.
Customise alerts to inform you when market conditions and prices

Or create your own code...
For our more advanced traders, Tradefair Pro Development Studio comes as standard in this free downloadable package.
Code your own unique trading systems and alerts in C# .NET and Visual Basic (VB).
spreadbetting
Posts: 3140
Joined: Sun Jan 31, 2010 8:06 pm

ShaunWhite wrote:
Fri Aug 24, 2018 2:34 pm
Mixed feeling about exchange competition. Might be better the devil you know. I'm not sure if I want...

a) One mega exchange, big markets, one api..... but slightly unfavourable terms, or
b) Multiple exchanges, smaller markets, multiple apis and everyone's terms being different though slightly better.
Not sure I'd call 60%+ slightly unfavourable terms :o

I'd imagine most of us earn our money from inefficient markets , bigger efficient markets are more likely to lessen our opportunities not increase them.
User avatar
ShaunWhite
Posts: 9731
Joined: Sat Sep 03, 2016 3:42 am

spreadbetting wrote:
Fri Aug 24, 2018 3:25 pm
ShaunWhite wrote:
Fri Aug 24, 2018 2:34 pm
Mixed feeling about exchange competition. Might be better the devil you know. I'm not sure if I want...

a) One mega exchange, big markets, one api..... but slightly unfavourable terms, or
b) Multiple exchanges, smaller markets, multiple apis and everyone's terms being different though slightly better.
Not sure I'd call 60%+ slightly unfavourable terms :o

I'd imagine most of us earn our money from inefficient markets , bigger efficient markets are more likely to lessen our opportunities not increase them.
There's pros and cons (and I don't just mean professionals and ex-lags). Bigger more efficient markets suit some people, it's a Wolves V Cheltenham comparison.

I'll take the correction about 'Slightly', but it was supposed to be a relative measure to the other scenario, nobody starts an exchange as a charity. Running an exchange is a really expensive business, they'll all need to charge to keep going after the initial deals and first round funding has dried up.

I'm not 100% either way, I just don't think it's a clear binary decision. The LSE didn't sprout an Alt-LSE so I'm not sure there's a precident for multiple exchanges to evolve naturally in a capialist system. Competition just doesn't thrive despite the illusion of a free market, eg ebay, amazon, paypal, google, fb, insta etc. Multiple mid-sized exchanges might be desirable, but might not actually be sustainable or even possible.

Exchanges big enough, but not too big, that's the key....but it's a tricky balancing act to pull off.
User avatar
Naffman
Posts: 5626
Joined: Sun Aug 11, 2013 5:46 am

Smarkets have gone from a year ago when they said we'll have a trading API ready in 6 months to now saying they have no plans to even create one :roll:

I would've maybe used them but the fact that they also heavily seed there own markets is really concerning, Betdaq easily the best of the rest for traders (whom I plan on using a lot more as Betfair are just pissing everyone off)
User avatar
ANGELS15
Posts: 844
Joined: Wed Mar 22, 2017 9:57 am

A little while back I tried to look up reviews about Smarkets and most seemed negative. One user said they closed his account because he was 'greening up' too often!
Post Reply

Return to “Alternative betting exchanges, Smarkets, Matchbook etc.”