Betfair to do fixed odds betting sportsbook

[Iron]

The article sounded a bit tentative. It wrote that it was something Betfair planned to do, which is different from a firm commitment.

Jeff

Not sure why you thought it was just an idea

[andyfuller]

I think it will have an impact on the exchange. I see this as very different to the BFSP not sure I was one of those who thought the BFSP was going to cause the end of the world as some thought btw

Will the impact be significant I don't have a clue and will it be a negative or a positive impact, again I don't have a clue. I suspect on the later it will be both. They seem to be sayign it will mainly be used on less liquid markets and early markets at the moment so it could throw up more opportunities that previously were not there.

The big profits are in sports books and not exchanges so I really don't see it as a surprise that now all BF is about is profits for shareholders that they are going down this road.

The whole reason they say for the 60% PC was to allow them to actually make money out of those people as until then they lost or broke even with such clients.

[andyfuller]

The article sounded a bit tentative. It wrote that it was something Betfair planned to do, which is different from a firm commitment.

Jeff

Not sure why you thought it was just an idea

As I said on the other thread to the person that asked go and listen to the webcast they did for shareholders if it is still available. It is worth listening to not just for this but also to hear about the PC and other things. Wait for the questions at the end as well.

[Iron]

IMHO, the traditional bookies can get away with the low odds they offer because their punters are set in their ways. Many of the punters will have heard that they can get better prices at Betfair, but can't be bothered switching.

So Betfair probably won't be picking up too many of those guys with their new service - they will have to rely on existing customers. And as I mentioned before, unless they can offer odds that are competitive with the exchange odds, they aren't going to do much business. So they will be faced with a choice - revert to the old model of doing business, or become a bookie (which would hopefully transform Betdaq's fortunes overnight!).

Jeff

[andyfuller]

My current thinking is that they do plan to pick up customers who currently use the existing bookmakers and a small proportion of current exchange users for this new venture. I may be wrong. A kind of extension of their very profitable high rollers service they offered. Would love to know why they have suspended this service.

[hgodden]

As you probably read they said they suspended it due to the volatility. IF that is true, then they really must have had to stand some pretty enormous bets!

[Iron]

My current thinking is that they do plan to pick up customers who currently use the existing bookmakers

They can try, but I think they'll end up with egg on their faces.

Basically, they'll be saying to punters:

'We know you didn't want to move over to us when were were offering much better odds than the traditional bookmaker. But now we're offering similar odds to the guys you're already using, why not give us a whirl?'

A kind of extension of their very profitable high rollers service they offered.

Maybe they've already reintroduced such a service, which might explain some of the spikes we've been seeing...

Jeff

[andyfuller]

As you probably read they said they suspended it due to the volatility. IF that is true, then they really must have had to stand some pretty enormous bets!

I must be getting old...

[Iron]

Betfair have just informed me that 'the fixed odds will have no laying and will only be backing'.

Jeff

[hgodden]

[/quote]

I must be getting old...[/quote]

I just assumed that you didnt believe the official version and was wondering what they REAL reason was

[andyfuller]

Basically, they'll be saying to punters:

'We know you didn't want to move over to us when were were offering much better odds than the traditional bookmaker. But now we're offering similar odds to the guys you're already using, why not give us a whirl?'

Was one of the main reasons that people didn't make the move to do with the fact that they found the exchange model complicated and just wanted to get a bet on. I assume this will have a very simple platform much like with current bookmakers and will give instant execution. Perhaps they will also be able to build in better prices than the traditional bookmakers to boot but worse than the exchange prices.

TBH I think no one will know what the deal is until the launch the thing, maybe it will just be the next LMAX or maybe it will be the great success they hope it will be. Either way I can't say I am too fussed as I don't plan to still be trading on BF by then.

[andyfuller]

I must be getting old...[/quote]

I just assumed that you didnt believe the official version and was wondering what they REAL reason was [/quote]

Lol nah had just forgotten the reason they gave and tbh it seems like a valid enough reason but I assume they will bring it back if they haven't already as it proved extremely profitable from memory (so probably lost heaps )

[superfrank]

From a strategic perspective Betfair could find themselves stuck in the middle with a brand that doesn't actually stand for anything.

Exactly. They've spent a fortune on the "better odds with Betfair" promotional type stuff. Odd. 'think they're just grasping at straws in the search for growth (e.g. LMAX) instead of developing the core business into what it could have become.

[Iron]

Was one of the main reasons that people didn't make the move to do with the fact that they found the exchange model complicated and just wanted to get a bet on.

In that case, maybe Betfair's marketing should have focused more on how simple betting with Betfair is.

I can't say I am too fussed as I don't plan to still be trading on BF by then.

Why's that? What will you be doing instead?

Jeff

[andyfuller]

In that case, maybe Betfair's marketing should have focused more on how simple betting with Betfair is.

They probably would have if it were simple but there is no getting away from the fact that it is far more complicated than betting with a normal bookmaker. Also place a bet with a bookmaker and your bet is on, with Betfair it isn't always quite so easy.

Why's that? What will you be doing instead?

Jeff

Because I don't agree with Betfair taking 60% of my earnings and that figure is only likely to go up in time, not down so I feel for me the time is right to move on. Not 100% certain on my plan going forward yet hence me still trading on Betfair while I get everything in place.