Betting exchange

A betting exchange or p2p (player to player) exchange is a fairly recent Internet phenomenon, and is used to describe web a site acting as a broker between parties for the placement of bets (gambling, in other words). The UK betting exchange Betfair is a successful example of the the idea. The site usually make their money as a percentage of the winning bet.

Big-betting gamblers whose betting activities have traditionally been restricted by bookmakers have found these sites a boon since they are now able to place bets of unrestricted size, providing always of course that there is someone available to match them. Prices offered often tend to be better than bookmakers despite the commission charged.