This method of betting, very popular in the United Kingdom and known by the name of tip and bank, officially arrived in Italy on 7 April 2014.
Betting Exchange, also known as bet-exchange or exchange-betting, is based on a very simple principle: bettors are offered the possibility to exchange bets without having to go through the bookmaker.
Let’s understand it better…
WITH THE CLASSIC BETTING METHOD, THE BETTOR BETS AGAINST THE BANK (I.E. THE BOOKMAKER);
WITH BET EXCHANGE, ON THE OTHER HAND, YOU BET AGAINST OTHER BETTORS.
In the Exchange, therefore, the role of the bookmaker is only to provide the platform for users to meet, taking a small commission on winnings made (a commission that never goes beyond 5% of the amount won).
When using the Bet Exchange you can only do 2 things: bet or bet on a certain result.
WHAT “BETTING” MEANS
When you decide to bet you are betting in favour of an event occurring. So nothing different from a traditional bet.
Let’s try to clarify this with an example.
In the derby “Milan – Inter Milan” you decide to bet on Milan to win.
In traditional betting, when you bet on the sign 1 (Milan win), you face the bookmakers.
If Milan wins, you win and the bookmaker will pay you at the established odds.
If Milan do not win, you have lost the bet. The entire amount of your bet will go straight into the bookmaker’s pocket.
Now let’s see what happens when you place a bet in the Exchange.
If you bet on AC Milan to win via the Exchange, you will be up against other bettors who have placed the same bet as you.
With all those bettors who imagine and want AC Milan not to win.
Is that clear? Let’s move on…
WHAT DOES IT MEAN TO “BET”?
Banking a prediction is the main feature that distinguishes Exchange betting from all other forms of betting.
Let’s take the same example as above, the one on the derby della Madonnina.
The opposite of BETTING on an AC Milan win is BETTING on a MILAN win.
Follow me carefully.
When you BET on MILAN to win, you will have to hope that MILAN does not win (so to win your bet you will have to hope that MILAN draws or loses!).
When You Place A Bet You Become The Bookmaker And You Face All The Other Bettors Who See Milan Winning The Match.
Connected to the bet we have the most complex aspect to understand that we will address in the next lines: the responsibility.