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The biggest and most well known exchange is Betfair, and after a 7 year long battle to break into the US market they finally launched the first US betting exchange in May 2016. Betfair US have been providing the service to American punters at the New Jersey Monmouth Part racetrack from May, in partnership with Paddy Power and Darby Development.Initial exchange operations are focused on horseracing, though it won't be lost on US punters that exchanges cover the full range of sportsbetting options.
Up to now Betfair have been running a betting operation using 4NJBets - a sportsbetting site who's Customers have got first try at the new exchange in a closed beta trial. Betfair also runs an online casino in New Jersey in conjunction with Atlantic City’s Golden Nugget casino.
Although initial results have reportedly been strong, it may take US punters some time to catch on to the big value that can be obtained. To help, Betfair are setting up an exchange simulator to help punters learn about the offer.
The full list of tracks which have made agreements to offer Exchange betting include Monmouth Park, Woodbine, and the tracks running live in Louisiana and West Virginia. In Canada, Woodbine racegoers can also use the service.
One element that might disturb prospective Customers is the 12% commission which will be charged on the win that comes out of any positive return exchange bet. In the UK, this figure is significantly lower, though we need to recognise that the liquidity in the US market may initially be low. Betfair need to cover their costs.
Us Betting Odds On Presidential Election
Liquidity In The Exchange Markets? What's That?
Clearly the understanding of how exchanges work needs to be built up in the heads of US bettors. Unfortunately this presents somewhat of a chicken and egg situation. To be successful an exchange needs to have plenty of cash being wagered - plenty in the pools to build up the chances of higher odds being available.
If there are not enough takers of the odds on offer (the exchanges Customers), then the layers will be prevented from offering higher odds. Everyone's out to make a profit, right? This is what's known as liquidity - essentially the volumes of money that make the betting markets viable.
Betfair obviously have a task on their hands to build up solidly and hopefully quickly - get as many US punters on to the Exchange as they can and show everyone the value.
Us Betting Odds Explained
So Really - What Value Do Betting Exchanges Give?
Us Betting Odds Explained
All of this talk about extra betting value for US sportsbetting fans is great of course, but it's worth knowing exactly how betting exchanges deliver that value. It's a big subject, and one which is already covered in many online articles so let's take a look at a few of the best:
The most obvious place to start is on the Betfair US exchange site itself, where you'll find plenty of info that'll help you get started.
Another option is to visit Wikipedia, the online encyclopedia which covers pretty much everything. The Wikipedia betting exchange article offers a great introduction.
Next up is a short BBC article on exchange betting which gives a clear description of how it all works. It's nearly ten years old but still worth a look.
Lastly this lengthy write up on betting exchanges at BettingMarket.com will take you deeper into the intricacies of the subject, explaining in specific terms how exchanges work and more importantly, how they deliver great value to betting fans.
For some more visual explanations there are dozens of useful betting exchange videos on Youtube channels.
These below specifically give a good - although basic - visual introduction. The first is Betfair's first promotional video for the new US exchange, the second comes from BetAngel and gives an introduction to exchange betting in general.