Introduction
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The following is an in-depth review of the betting agency Betfair. This review covers the history, features, interface, sports & racing markets, upsides and downsides of the service. This review is part of our comprehensive Bookmaker Reviews section. The Betting Agencies page provides information and reviews for other sports betting agencies that are suitable for Australians. The following details are updated periodically to keep them up to date. |
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History, Location and Licence
Betfair was launched in the UK in 2000. The service has enjoyed a meteoric rise, and in 2003 the company was a recipient of one of the Queen’s Awards for Enterprise (the UKs highest official awards for business). Betfair is now the world’s largest Internet betting exchange. The service has over three million customers and employs around 1,200 people. Betfair is currently licensed in the UK, Malta, Austria, Germany and Tasmania, Australia.1
Betfair is a unique betting environment because it operates as a marketplace. Members set the odds for an event and others take up those odds. This enables the user to act as both a punter and bookmaker. Betfair argues that you get 20% better odds with their service than with standard bookmakers. In markets such as head to head betting this claim is often untrue, however Betfair offers by far the best tournament betting odds, such as the Men’s Wimbledon champion. Betfair earns its revenue through charging commissions of between 2% and 5% on net winnings.
Services and Features
| New member offers | Sign up using the promo code FBR262. Place your first bet and if it loses Betfair will refund you up to $50. Excludes VIC and SA. |
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| Deposit options | Australian customers: credit/debit card, POLi, bank transfer, BPAY, Moneybookers, NETeller, cheque |
| Withdrawal options | Australian customers: bank transfer, Moneybookers, NETeller, cheque |
| Transaction fees | 1.5% fee for Australian credit/debit card deposits. No fees are charged for bank transfer or POLi. Your bank may charge a fee if you withdraw funds by bank transfer. |
| Currencies | AUD, CAD, DKK, EUR, GBP, HKD, NOK, SEK, SGD, USD |
| Languages | English, български, Česky, Dansk, Deutch, Ελληνικά, Español, Suomi, Italiano, Norsk, Polski, Português, Русский, Svenska, Türkçe, 简体中文, 繁體中文 |
| Odds formats | Decimal |
| Minimum deposit | POLi: $5 Moneybookers, BPAY, bank transfer: $15 NETeller: $25 Credit card: $30 |
| Minimum bet | $5.00 for online wagers. This is higher than standard bookmakers, but is necessary due to Betfair’s commission structure. The minimum wager for Fair Price racing is $0.50. For phone betting the minimum stake for laying and in-play betting is $20. The minimum stake for back bets on markets that are not in-play is $50. |
| Maximum payout | Maximum winnings are determined by the level of market activity for each event. Your betting limits are dependent on how much is available to match in the marketplace. For multi bets the maximum stake is typically $10,000. |
| Deposit turnover requirements | None that we’re aware of |
| Bonus credit turnover requirements | None that we’re aware of |
| Bookmaker margin | Despite marketing itself as offering better value than bookmakers, Betfair was about average in our bookmaker margin survey. This result is biased however, because Betfair’s strength lies in its tournament betting odds, and tournament betting was not heavily represented in the survey. Because Betfair is a marketplace, the margin depends on the popularity of the event. The margins typically decrease in the lead up to an event as more people participate in the market. |
| Credit facilities | None |
| Forbidden Jurisdictions | United States |
| Mobile version of the website? | Yes |
| Identity checks | Australian users can verify their identity at an Australia Post office. |
| Dormant account fees | None |
Betting Interface and Website Layout
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The Betfair interface consists of a three-column layout. The left column displays available sports, the centre column displays the available back/lay odds, and the right column displays your betting slip. The navigation menu is highly functional. Because so many leagues are offered, the sports navigation menu hides all parent categories that don’t relate to the selected market. To view all top level sport categories again you click on ‘All Sports.’ As you click on a sport the available leagues are displayed without reloading the page, which is a time saver. A search feature for markets is available. The odds display can be confusing at first. Because you can bet for and against outcomes, both the back (betting for) and lay (betting against) odds are displayed for each selection. If you back a selection you are playing the role of the punter. If you lay a selection you are playing the role of the bookmaker. If you lay $100 at 2.50 odds and the selection doesn’t win, then your bet wins, and you receive $100 minus commissions. If you lay $100 at 2.50 odds and the selection does win, then you lose (2.50 – 1)*$100 = $150. To simplify the display you can opt to not view the market depth. The market depth shows how much money is available for you to wager at the second and third best available odds. If you are only wagering small sums of money then the best available odds are all you need to view. If you also opt to not view the lay odds then you are only shown the best available back odds. The odds interface will then resemble a typical bookmaker odds display. Once you place a wager on a market the selections will become colour coded and will show how much you stand to win or lose if each selection wins. This feature is incredibly handy when you are placing numerous back and lay wagers on tournament winner markets. Also, as you input a wager into your betting slip the odds display will update to show your win/loss profile if you choose to submit the bet. The betting slip is highly functional. You can submit back and lay bets at the odds of your choosing and the potential profit is automatically displayed. The betting slip features tabs to view wagers you have already placed on the market (both matched and unmatched) along with rules and help. |
Sports display
Odds display (all information)
Odds display (no market depth)
Odds display (no market depth or lay odds)
Odds display (with funds wagered)
Betting slip
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Sports Markets
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Betfair offers a massive range of sporting events, although the quantity of markets can be misleading. Less popular events are almost impossible to participate in due to lack of market participants. To be able to back or lay an outcome, you require someone to take the opposite position. So if you want to back Chelsea to beat Arsenal, you must be able to find someone who’s willing to bet against Chelsea. Often, for the less popular events, there are too few participants to find meaningful odds, so the actual betting selection is smaller than what initially meets the eye. With that all being said, the selection is greater than what is offered by most bookmakers. All of the major sports and leagues are catered for, and there are typically numerous betting markets for each AFL and NRL fixture. Because the service offered to Australians is licensed in both Malta and Tasmania, for legal reasons Australian users hold two account balances. If you want to participate in an Australian market, such as AFL, you must transfer funds from your main “wallet” to your Australian “wallet.” While this task only takes a few seconds, this can be annoying when time is of the essence. You can see whether a particular market uses your Australian or main account balance by selecting the market and clicking on ‘Rules’ in your bet slip. Because Betfair is a marketplace, multi betting becomes difficult. Betfair has signalled its intention to operate as both a bookmaker and an exchange, and now offers multi betting using a different section of the website. The individual wager odds aren’t as good as those offered in the marketplace, but the service does provide the multi betting functionality that is available with standard bookmakers. Overall, the betting selection is excellent. The ability to lay bets against outcomes is the highlight of the sports betting service. Just note that the optimal time to place a wager on a market is just before the event commences, because this is when market participation (and therefore liquidity) generally peaks. |
Most popular markets, with matched & unmatched amounts
A market with no activity
Account balances
Multi betting slip
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Horse Racing
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Betfair offers three types of race wagering: Exchange Fair price The Tote Betfair offers form guides, and the new Betfair racing website enables you to view exchange, Fair Price and Tote odds all at the same time. |
Exchange race odds
Exchange, Fair Div and Tote odds
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Live Sports Betting
Due to Australia’s Interactive Gambling Act 3, live online betting is not available for Australians. Australian customers must phone in to bet live. If live online sports betting is what you’re after, we recommend bet365.
Other Features
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Betfair offers a live video section, which features live footage of horse racing and selected sporting events. Live odds are provided, where applicable, however Australian residents are unable to bet live due to Australian law. The sporting selection and video quality are relatively poor compared to some other services. If live video feeds are what you’re after, we recommend bet365. Betfair offers detailed statistics and form guides for selected sports such as tennis. The website also features an in-depth guide on how to use Betfair in a section called the “Betfair Locker Room.” The Betfair website features a community section, which consists of a forum and online polls. There is a high level of participation in the forum, which makes it a great resource for researching sporting events. |
Live sport video
Form guide
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For the technically minded punter, Betfair offers a Developers Program that enables developers to integrate Betfair services into other applications. This enables you to develop automated trading systems to place wagers on your behalf!
Upsides
- Can bet both for and against outcomes
- Strong betting selection
- Odds are often made available before bookmakers
- Excellent tournament betting odds
- Access to community forum
- Developers can create applications that integrate with the Betfair sports exchange
- No turnover requirements
Downsides
- Live online betting is not available to Australian residents (due to Australian law)
- Not as beginner friendly as a standard bookmaker
- 1.5% fee for credit card deposits
- Complicated commission structure
- High $5.00 minimum bet for exchange wagering
- Inconvenient two “wallet” system
- In September 2008, Betfair introduced a “Premium Charge” for punters whose winnings were deemed to be disproportionately high compared to commissions paid. Betfair insists that the charge impacts less than 0.5% of its members. In June 2011 Betfair announced that it will raise the Premium Charge to 60% for some customers (reportedly 500 of their 3.8 million users).1, 2
Bottom Line
Betfair takes time to learn and get used to, but it’s well worth the effort. The ability to bet both for and against outcomes transforms sports betting into a completely different experience. Betfair’s biggest strength lies in tournament betting. The tournament winner odds are far superior to those offered by standard bookmakers, and the back/lay system enables you to lock in profits if odds move in your favour. Betfair is certainly not suitable for sports betting beginners, however serious punters will revel in the ability to play the roles of both the punter and bookmaker. We highly recommend Betfair to serious sports betting enthusiasts and to those who enjoy tournament winner betting.
Notes and Sources
- 1 http://en.wikipedia.org/wiki/Betfair
- 2 http://www.guardian.co.uk/sport/2011/jun/29/betfair-premium-charge-increase
- 3 http://en.wikipedia.org/wiki/Interactive_Gambling_Act
- 4 POLi facilitates online bank transfers that are acknowledged by the bookmaker instantly. This enables you to log into your banking provider, transfer money to the bookmaker, and place bets immediately.
