What is Betfair
Betfair is an online betting and an Internet betting exchange company, currently the largest in the world at its area. Betfair was founded in June 2000 by Andrew Black and Edward Wray and has become the largest betting company since then, with more than 4,000,000 claimed bettors and cash flow of more than £50 million in transactions per week. Betfair is different than other online betting companies or traditional bookmakers as it gives the bettors a chance to bet on a lay, which is betting on an outcome not to occur rather than betting on an outcome to occur. As a betting exchange company, Betfair allows bettors to bet on odds set and determined by other bettors rather than odds set by bookmakers which are obviously tend in favor of the bookmakers and also offers free horse racing betting bonuses for new bettors. Betfair charges a 5% commission on every win and by that is capable of offering better odds than other online betting companies and bookmakers, up to 20% better odds. It is said that the Betfair betting interface resembles the Stock Market trading interface with back and lay options compared to buying stocks (voting for their value) or selling stocks (voting for their lack of value).
Betfair Around the World
As the largest Internet betting exchange company in the world, Betfair has many affiliate and commercial contracts with more than 30 sports governing bodies including the British Horse Racing Association, New York Racing Association and the Lawn Tennis Association. Betfair is also licensed and legislated to provide its services in several countries which allow online betting such as Australia, New Zealand, Malta, Tasmania and the UK, where it was established and first launched its services and where its headquarters reside, in Hammersmith, West London. Betfair has been prohibited from providing any services in countries such as the US, and other countries which ban sports betting or restrict its citizen from placing bet money overseas.
Betfair has been accused of promoting corruption in sports betting and in horse racing in particular by giving bettors the option to bet on an outcome not to occur. Since its easier to pick a horse, football team, or racing driver and bet on their losing, traditional bookmakers have argued that it creates conditions for sports betting corruption to grow on and infect the industry. Betfair has claimed in its defense that the bookmakers made their appeal not in consideration of the sports betting integrity but for commercial and financial reasons. In order to get straight with the issue, Betfair keeps records of each individual account activity history and has engaged information sharing agreements with many governments around the world in case an investigation over suspicios betting activity is taking place.