Market Maker vs Market Taker: Should Bettors Use Exchanges or Traditional Books?

[TaffyTipster]

Correct Tony.

DraftKings gives you free bets and boosts.

Betfair gives you fair prices and no limits.

Different value propositions.

 

[Klaus]

Promotional value significant for new bettors.

DraftKings, FanDuel offer substantial bonuses initially. Then limit you quickly if you win.

Extract promotional value then migrate to exchange or sharp book.

 

[FadeThePublic]

That's exactly my strategy Klaus.

Milk the promos on recreational books. Do serious betting at Pinnacle or offshore.

 

[oli_sussex]

Optimal approach for US bettors without exchange access.

Europeans should use exchanges primarily. Recreational books for promos only.

 

[ThePuntingProf]

I have used Betfair exchange for approximately fifteen years and find it superior to traditional bookmakers in almost every respect, the ability to lay selections is valuable but the primary advantage is simply avoiding winner limitation, I have been restricted to absurdly small stakes at virtually every high street bookmaker in North London after demonstrating consistent profitability, whereas Betfair has never limited my stakes because their commission model means they profit from my volume regardless of results, the exchange model is simply more sustainable for serious bettors, my only critique is that liquidity in lower-tier football matches can be insufficient for large stakes but for Premier League and major competitions the liquidity is excellent.

 

[TaffyTipster]

Prof loves Betfair.

Makes sense given he's been profitable for decades.

Traditional bookies would've banned him years ago.

 

[ParlayPrincess_88]

Wait bookies actually BAN people for winning?? That seems so unfair!

 

[SharpEddie47]

Princess it's completely unfair but perfectly legal.

Traditional books have terms of service that let them refuse anyone's action for any reason.

 

[FadeThePublic]

I've been limited at four different books. It's a badge of honor but also incredibly frustrating.

You get good at betting and they punish you for it.

 

[Klaus]

American market particularly aggressive with limitations.

European books slightly better but still limit winners.

Only Pinnacle and exchanges sustainable for long-term winning bettors.

 

[CoachTony_Bets]

This is kind of making me angry. You get good at something and they kick you out?

 

[oli_sussex]

Correct. Traditional book business model depends on losing customers.

Winners threaten profit margins. Solution: eliminate winners.

Exchanges don't have this problem. No incentive to limit anyone.

 

[TaffyTipster]

Had a mate get limited to £2.47 per bet at Ladbrokes.

Not £2.50. £2.47.

Like they're taking the piss on purpose.

 

[ParlayPrincess_88]

That's so specific! Why that amount??

 

[FadeThePublic]

It's intentionally insulting Taffy. They're telling him to go away without actually banning him.

 

[SharpEddie47]

The psychological warfare of betting limits. Make it so insulting they leave voluntarily.

 

[DublinDegen]

lads ive never been limited because ive never won enough to worry about... silver lining i guess...

 

[TaffyTipster]

Conor mate you're looking at it the right way.

 

[CoachTony_Bets]

So consensus is: exchanges are better for serious bettors if you have access, but Americans are stuck with traditional books?

 

[SharpEddie47]

Pretty much. With caveat that Pinnacle exists for Americans who can access it.

But yes, Europeans have structural advantage through exchange access.