A betting exchange is a marketplace where participants can both back and lay outcomes of events, which differs from traditional bookmakers where you can only back outcomes. ‘Backing’ a bet means you are betting on a certain outcome to happen, while ‘laying’ a bet means you are betting against that outcome. The exchange matches back and lay bets between customers, essentially allowing customers to bet against each other. One of the main advantages of a betting exchange is that it often offers better odds than traditional bookmakers, as it doesn’t factor in a bookmaker’s margin. However, the betting exchange does take a commission on winning bets. Notable examples of betting exchanges include Betfair and Betdaq.
This article unravels the concept of Lay Betting, explores its integration with betting exchanges, and provides a real-world example of a successful lay bet in horseracing.