Kukla's Korner Hockey
by Paul on 01/26/12 at 02:35 PM ET
As always, when a new, direct advertiser appears on Kukla’s Korner, I like to inform readers about the services they offer.
Today, a little background on Betfair.
KK: Let’s start with the basics, what is Betfair?
The easiest way to answer that question is to look at a traditional bookmaker. The ‘bookie’ offers you odds on an event and you simply have a choice of whether you want to take them or not. Those guys build a big fat margin into their odds, partly because they can, and partly because they are taking the risk (and want to cover the times when the results go against them). This means that the odds offered will hardly ever be the best you can get, and will always favor the bookmaker. Every single bet.
Betfair is different.
Betfair is an exchange. That means it is the customers that choose their own odds, just like people on the stock market choose the price they want to buy and sell shares at.
KK: So kind of like eBay?
Exactly. Just as eBay matches up buyers and sellers, Betfair matches sports bettors’ opposing opinions of things either happening or not happening. In other others, Betfair matches bets.
KK: What do you mean by ‘happening’ or ‘not happening’?
This is what makes us so different than anyone else out there. At Betfair, you don’t just have to ‘Back’ something to win. Now you can do what you’ve always thought only a traditional bookie could do and take the opposing view - i.e: you can ‘Lay’ a selection, or bet that something won’t happen. This is something the traditional bookies only ever let you do when it suited them; but now you, the bettor, have total control of what you do and when you do it.
KK: Can you give us an example?
Absolutely. Do you think the Toronto Maple Leafs will win the cup?
KK: They’re fighting to make the playoffs, so no!
Then bet them to lose. This means that if any other team wins the Stanley cup, you win your bet. Here’s another example. Take a tennis tournament; if you think that Roger Federer is getting a tad old and won’t win, you can bet against him; or a soccer match where draws are common, you can bet against the tie.
Backing or laying gives you flexibility and creates more betting opportunities.
The other revolutionary thing Betfair brings to your betting armory is the ability to bet while a game is actually underway or ‘in-play’. You can ‘back’ or ‘lay’ right up until the final whistle. So, you don’t have to dive straight in and make a choice before the start, you can wait and see how your team is performing before making a decision. And remember, if you can always ask for better odds if you don’t like what’s being offered.
KK: Very cool. Now I have to ask, how does Betfair make its money?
There’s a small 5% (or less!) commission on any winning bet and, because every bet has a winner, it means there is no built-in profit margin like the other bookies do. Put it another way - imagine you’re in a huge room full of people all wanting to place bets on the same hockey game. Betfair’s betting license allows us to put you together with people (you don’t know who they are, but we do) who have got an opposing view to you. We then hold the cash until the game is over. But because we aren’t trying to build-in a profit, the odds on offer are just a pure reflection of what bettors (that’s you and your betting friends!) think is likely to happen.
KK: Nice. Anything else you’d like to tell our audience?
Sure, we’d like to mention that Betfair is the world’s biggest betting community, having pioneered the betting exchange in 2000. The company now processes over seven million transactions a day from its three million registered customers around the world. In addition to sports betting, Betfair offers a portfolio of innovative products including casino, exchange games and poker.
While we’re at it, Betfair has launched a Customer Commitment, outlining the company’s promise to deliver the best possible service for its customers. It includes 14 customer promises across five key areas; protection for customers and their data, integrity in sport, customer service received by Betfair account holders, clear communication, and the reliability of Betfair’s products and services.
You can get more information here: Customer Commitment
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Paul Kukla founded Kukla’s Korner in 2005 and the site has since become the must-read site on the ‘net for all the latest happenings around the NHL.
From breaking news to in-depth stories around the league, KK Hockey is updated with fresh stories all day long and will bring you the latest news as quickly as possible.
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