Long term prospects of Betfair/exchanges

[acecard]

Any views on the long term prospects of Betfair/exchanges? Does anyone (especially those involved in pre-race trading) ever fear that Betfair could suddenly go bust or that the exchange model will disappear? That would mean bye bye income steam, gone almost overnight if such a thing were to happen

This worries me slightly as I am starting to get interested in pre-race trading a lot. I've spoken to some that think it is as safe as houses and others that think that exchanges are on the decline. What is the real answer??!!

Any ideas much appreciated!

[Emmson]

Good chance the exchange model will disappear if Jeremy Corbyn gets into 10 Downing Street. This has been a fear of mine for a few years now and I am a centre left voter.

Gordon Brown giveth

http://news.bbc.co.uk/sport1/hi/front_page/1207748.stm

and Jez would likely taketh.

[Dallas]

I think it was Peter who once summed it up as 'The Pandora's box of a peer to peer betting exchange is open" and now it is open it will always be around in some form.
If BF closed today for good by Money BD will have taken its place

[Derek27]

Good chance the exchange model will disappear if Jeremy Corbyn gets into 10 Downing Street. This has been a fear of mine for a few years now and I am a centre left voter.

Gordon Brown giveth

http://news.bbc.co.uk/sport1/hi/front_page/1207748.stm

and Jez would likely taketh.

What makes you think Corbyn would interfere with the exchange? I've never heard him mention anything about betting?

[Emmson]

Good chance the exchange model will disappear if Jeremy Corbyn gets into 10 Downing Street. This has been a fear of mine for a few years now and I am a centre left voter.

Gordon Brown giveth

http://news.bbc.co.uk/sport1/hi/front_page/1207748.stm

and Jez would likely taketh.

What makes you think Corbyn would interfere with the exchange? I've never heard him mention anything about betting?

Its low hanging fruit isn't it? the whole gambling sector. His deputy Tom Watson certainly has made noises.

[spreadbetting]

I imagine if Labour manage to get in they'll be much more pressing problems to sort than betting exchanges. And to be fair we can earn a lot of money and contribute nothing to society so a gross profit tax might not be the worst thing to happen. But in reality it's hard to see any government wanting to open that can of worms when they'd be little return at the end of the day.

[ANGELS15]

One thing I've noticed is that there is a general lack of knowlege/awareness among the general betting public about exchanges. Not only that but they don't seem to want to explore this option. I visit betting shops a lot to watch the racing as they tend to have faster pictures than betfair mobile. The punters in these places are mainly interested in fruit machines and this virtual betting nonsense. Ask most people you meet what a betting exchange is and in all probability they won't know or even if they've heard of Betfair not be able to explain the concept. The major exchanges are now in partnership or owned by bookmakers who don't seem interested in promoting the exchanges or maintaining enough skilled staff/resources in their helpdesk teams.

[Archangel]

Are those FOBT machines still prevalant in the UK ?
I dont see them much here (Ireland)
The crack cocaine of gambling

[acecard]

Good chance the exchange model will disappear if Jeremy Corbyn gets into 10 Downing Street. This has been a fear of mine for a few years now and I am a centre left voter.

Gordon Brown giveth

http://news.bbc.co.uk/sport1/hi/front_page/1207748.stm

and Jez would likely taketh.

Looks like I may have to change my voting habits!

[acecard]

I imagine if Labour manage to get in they'll be much more pressing problems to sort than betting exchanges. And to be fair we can earn a lot of money and contribute nothing to society so a gross profit tax might not be the worst thing to happen. But in reality it's hard to see any government wanting to open that can of worms when they'd be little return at the end of the day.

I agree that is a can of worms.....being able to offset losses against income tax, etc. I personally wouldn't mind being taxed on the income, but not at the same time as having Premium Charge.....that would HAVE to go, and I think there would be a mass Exodus to BD in that case!

[acecard]

One thing I've noticed is that there is a general lack of knowlege/awareness among the general betting public about exchanges. Not only that but they don't seem to want to explore this option. I visit betting shops a lot to watch the racing as they tend to have faster pictures than betfair mobile. The punters in these places are mainly interested in fruit machines and this virtual betting nonsense. Ask most people you meet what a betting exchange is and in all probability they won't know or even if they've heard of Betfair not be able to explain the concept. The major exchanges are now in partnership or owned by bookmakers who don't seem interested in promoting the exchanges or maintaining enough skilled staff/resources in their helpdesk teams.

It is this that I think about the most.........do you think bookmakers have bought exchanges in order to crush them, or is this a more sustainable model for them to run? After all, profit is almost guaranteed by way of commission (and PC!). I know the bookie model is also guaranteed profit, but there is massive variance involved in that, and the need to employ analysts to set the prices.......exchanges seem like a much better business to run IMO.

[Archangel]

I read a quote recently, I cant recall who said it but it was

'Gambling is a losing game in which the bookmaker always comes out on top. For ordinary bettors who put a few quid on a match, it's essentially a tax on people who don't understand the laws of probability'

[ANGELS15]

One thing I've noticed is that there is a general lack of knowlege/awareness among the general betting public about exchanges. Not only that but they don't seem to want to explore this option. I visit betting shops a lot to watch the racing as they tend to have faster pictures than betfair mobile. The punters in these places are mainly interested in fruit machines and this virtual betting nonsense. Ask most people you meet what a betting exchange is and in all probability they won't know or even if they've heard of Betfair not be able to explain the concept. The major exchanges are now in partnership or owned by bookmakers who don't seem interested in promoting the exchanges or maintaining enough skilled staff/resources in their helpdesk teams.

It is this that I think about the most.........do you think bookmakers have bought exchanges in order to crush them, or is this a more sustainable model for them to run? After all, profit is almost guaranteed by way of commission (and PC!). I know the bookie model is also guaranteed profit, but there is massive variance involved in that, and the need to employ analysts to set the prices.......exchanges seem like a much better business to run IMO.

I think it's a combination of things. 'If you can't beat them join them'. 'Keep your friends close but your enemies closer'. Bookies realise the profitability of exchanges they just don't want too many people to know about them.

[acecard]

I just wonder whether I am being a bit silly putting so much of myself into this exchange trading lark given that it could just be taken away in the blink of an eye.

To have to think about going out to get a 9-5 job after doing this would just be AWFUL!!

[Archangel]

I just wonder whether I am being a bit silly putting so much of myself into this exchange trading lark given that it could just be taken away in the blink of an eye.

To have to think about going out to get a 9-5 job after doing this would just be AWFUL!!

Theres always going to be the possibility (however remote) that it could dissappear but thats the same with most things in life. You just need to focus on what you can control