On Betting Exchanges you do not bet against the bookmaker, but instead against other sports betting fans like you and me.

Additionally you can play the role of the bookmaker and offer (LAY) betting odds.

Essentially, betting exchange software allows you to bet against other punters directly instead of betting against a bookmaker. Online betting exchanges even allow you to play the role of the bookmaker and offer lay odds on a given match. Truly advanced sports investors even take advantage of betting exchange arbitrage or trading to score themselves a little extra.

As there is no central bookmaker with a betting exchange, there are many advantages available to punters. First and foremost, because there is no bookmaker, it is not necessary to pay a bookie's commission that is normally included in the odds. Small transaction fees are still assessed, but the margins are much better for you than with a traditional bookmaker.

Main Advantages:

a) the profit margin of the bookmaker is not there, so higher odds than at the normal bookie are possible. (although to be honest, you have to pay a small commission (only) on winnings) - on average Betting Exchanges offer up to 20% better odds than bookmakers;

b) You can 'sell' made bets and thus harvest the crop, before the match you had bet on is even started - thus being "in" on both sides of the bet!

There's now a growing trade in "made" bets, allowing you to buy and sell the work of other punters for a profit before a match even takes place. To profit on a sports betting exchange with this method you will want to keep a careful eye for detail. However, if regular betting has gotten stale then this is another venue to pursue.

The acknowledged market leaders amongst Betting Exchanges are BETFAIR, BETDAQ and MYBET