General Betting
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19 Sep 13
15:44
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17 Sep 02
http://www.betangel.com/blog_wp/2013/09/19/betfair-reaffirm-the-importance-of-their-exchange/
You may remember our campaign a little while ago where we encouraged everybody to provide some feedback to Betfair, you can read the original post by clicking here.
Well it seems they are listening as they posted a full response this morning and re-opened the thread again. I’ve extracted some of the response here to highlight some key elements in it: -
Thanks to everyone who voted, your opinion counts and we recognise that introduction of the Sportsbook may have made navigating to the Exchange site more difficult. We have decided to reopen this idea so that we can keep you better informed on the changes we are making and also listen to your feedback.
We announced in our strategy presentation to investors in May (http://corporate.betfair.com/~/media/Files/B/Betfair-V2/pdf/Betfair-7-May-13-presentation.pdf), we intend to route Sportsbook bets into the Exchange, thus increasing liquidity. We are currently building the technology required to allow Sportsbook bets to be placed into the Exchange and will roll out new products over coming months. We believe that these products will benefit both our Exchange customers (by increasing liquidity in the Exchange) and our Sportsbook customers (by allowing them to benefit from the great prices on the Exchange).
You can read the full response by clicking here, but that’s the thrust of it. Betfair do appear to understand the angst of their exchange users who, after-all, make up the vast majority of their revenue. So I guess we will have to see what changes are being planned and how that new sportsbook liquidity affects the exchange.
http://betfair1.uservoice.com/forums/192891-exchange/suggestions/4191888-make-the-homepage-the-exchange-and-not-the-sportsb?tracking_code=33c6a2a7cd575b27071182529d296bb6
I'd heard of this "routing Sportsbook bets into the Exchange" before but I don't recall seeing Betfair actually mention it in writing.
I'm definitely less gloomy about the future of the Exchange than many, and hopefully we're about to see some moves in the right direction.
You may remember our campaign a little while ago where we encouraged everybody to provide some feedback to Betfair, you can read the original post by clicking here.
Well it seems they are listening as they posted a full response this morning and re-opened the thread again. I’ve extracted some of the response here to highlight some key elements in it: -
Thanks to everyone who voted, your opinion counts and we recognise that introduction of the Sportsbook may have made navigating to the Exchange site more difficult. We have decided to reopen this idea so that we can keep you better informed on the changes we are making and also listen to your feedback.
We announced in our strategy presentation to investors in May (http://corporate.betfair.com/~/media/Files/B/Betfair-V2/pdf/Betfair-7-May-13-presentation.pdf), we intend to route Sportsbook bets into the Exchange, thus increasing liquidity. We are currently building the technology required to allow Sportsbook bets to be placed into the Exchange and will roll out new products over coming months. We believe that these products will benefit both our Exchange customers (by increasing liquidity in the Exchange) and our Sportsbook customers (by allowing them to benefit from the great prices on the Exchange).
You can read the full response by clicking here, but that’s the thrust of it. Betfair do appear to understand the angst of their exchange users who, after-all, make up the vast majority of their revenue. So I guess we will have to see what changes are being planned and how that new sportsbook liquidity affects the exchange.
http://betfair1.uservoice.com/forums/192891-exchange/suggestions/4191888-make-the-homepage-the-exchange-and-not-the-sportsb?tracking_code=33c6a2a7cd575b27071182529d296bb6
I'd heard of this "routing Sportsbook bets into the Exchange" before but I don't recall seeing Betfair actually mention it in writing.
I'm definitely less gloomy about the future of the Exchange than many, and hopefully we're about to see some moves in the right direction.
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well, let's hope everyone on here gets on there and votes for this, because sheer numbers will make the point far more effectively than individual comments.
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One show I think it was this week had a comparison between company responses to people making a complaint direct (so nobody else sees) or on social media (where everyone sees). Direct - lucky to get a (slow) response. Social media - they pull muscles to get a reply to you in minutes.
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on a similar subject, JC, there's nothing to stop people replying to BF sportsbook tweets with the equivalent price on the exchange.
which kind of points up the absurdity of their current strategy. BF have got themselves into a situation where people positively publicising the product that accounts for 90% of their revenue for free would be a problem. |
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We are currently building the technology required to allow Sportsbook bets to be placed into the Exchange and will roll out new products over coming months. We believe that these products will benefit both our Exchange customers (by increasing liquidity in the Exchange) and our Sportsbook customers (by allowing them to benefit from the great prices on the Exchange).
I'm struggling to see how this is going to work. I can't believe betfair will put their sportsbook prices onto the exchange as offers, as they will get ripped to shreds. I can see betfair taking a bet at say 1.8 on the sportsbook when 2.0 is available on the exchange, then the software fires in a beton the exchange guaranteeing betfair a profit. But then I can't see how the sportsbook punter benefits, because surely betfair wont offer the sportsbook punter 2.0. Then again I'm tired and it's late.. |
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do BF mean they will sell the bets on the sportsbook and then immediately buy the bets from the exchange hence guaranteeing a profit ?
after all ,this will increase liquidity BF (as opposed to the punters) will simply be buying the bets from us exchange players (layers) |
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the trouble with that model CB is it relies on sportsbook punters not "graduating" to the exchange. or if they do being replaced by new sportsbook customers.
it's a fundamentally flawed business model, imo, because do BF want people to find the exchange or not? the answer seems to be, "um, it depends who they are". everything that was simple and compelling about the original exchange model has been sacrificed to something which currently accounts for 10% of revenue and cannibalises the other 90%. |
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Only guessing - it would be like the skimming bot, with a bigger cut.
Betfair lock in a profit + get possible commission + pc from the exchange layer. It would certainly fit in with the current greed drive. Having said that, any extra traffic on the exchange would be a bonus. |
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In that presentation they did say that cash out on the sportsbook would be an exchange thing, but that doesn't seem to be the case?
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Is the Sporstbook available to use in the countries where the exchange model isn't?
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One thing is certain, whatever BF do in this area will be of benefit to BF above exchange users. They are not going to be pushing sportsbook bets onto the exchange without having a massive finger in the pie having a good taste of the produce first.
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viva el presidente! 20 Sep 13 02:20 Joined: 10 Jun 06 | Topic/replies: 16,559 | Blogger: viva el presidente!'s blog
the trouble with that model CB is it relies on sportsbook punters not "graduating" to the exchange. or if they do being replaced by new sportsbook customers. it's a fundamentally flawed business model, imo, because do BF want people to find the exchange or not? the answer seems to be, "um, it depends who they are". everything that was simple and compelling about the original exchange model has been sacrificed to something which currently accounts for 10% of revenue and cannibalises the other 90%. Rate reply: _____________ so in a nutshell , if the exchanges are simply too efficient the pro's will call it a day and the exchange dies because there are no new players ? and then BF can't buy from the exchange any more . that i understand , and this is why BF are scratching their heads thinking of a way to liven up the exchange by cherry picking customers ...the easiet way is to implement the premium charge . my biggest gripe with the charge is that it's based on current performance and not future performance ...i would like BF to stand by a system that agrees you get a refund on your p/charge if you start losing money . |
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or as Investor 2 said , charges at withdrawals
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I actually think that if things are implemented as planned it's a reasonable strategy- offering a sportsbook with exchange derived prices gives them a new avenue to entice recreation players (especially with associated exchange-derived cash-out functionality), a new stream of automated "free" money, and quite possibly allows them to offer an exchange-related product in countries which do not allow exchange betting.
What it does rely on, more than ever, is a liquid and well-looked-after exchange, which is the part of the equation they currently have wrong. Big layers / market makers will be even more vital to that strategy, yet these are the people almost desperate to jump ship due to hikes in charges and various other factors contributing to the decline of the exchange. This sportsbook strategy will actually REQUIRE liquidity to work, as well as generating it as they claim. Done properly it's win-win, but they'll need to start looking after existing, loyal exchange customers a good deal better for it to work. |
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Basically, it's even less justifiable for them to take 40-60% of your winnings if they are using the prices / liquidity you provide to offer a product which is going to make them easy profit in excess of the commission you yourself generate. The relationship between exchange user and BF becomes more symbiotic and the price structure (and basic attitude BF takes towards these users) ought to greatly improve to reflect this.
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Can you imagine how many knock backs sportsbook punters are going to get when there is only £2 sitting behind the price coming from the exchange
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Been full time on here since 2007 and I have to admit it's been a real struggle for me this year. Could just be variance but I am starting to question things and wondering how much mug money has been taken off the exchange and onto the sportsbook. Anyone going to betfair.com is directed to the sportsbook and one would assume that only the price sensitive users will then hunt for the exchange link while the others just pile their money into whatever crappy price is available on screen. Also I would imagine BF have been heavily recruiting their biggest losers and giving them incentives to move to the sportsbook where BF will get 100% of their money rather than shrewd punters taking a chunk.
I remember reading about one of the major poker sites segregating players based on ability which meant suddenly it was shark v shark and no one could beat the rake. Could a similar phenomenon be happening on Betfair? |
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I dont understand (and dont like it) on betfair that when economies are struggling, there are instruments to stimulate the economy:
-Changing taxes, -lowering rates(to ease credit availability). and more. Here on BF. We have lower demand for bets but the tax remains on the same level. How on earth we can have same profits because of lower demand? In my point of view last 2 years betfair strategy is to hunt,to combat,to make betfair clear of traders, and sse how much traders can swallow. Difficult year for me. Lost many of nerves beacuse of that strategy, but running my own bussines though which i didnt have in previous years. |