Should Bookmakers be Banned from Using Betting Exchanges?

July 22, 2018 July 22, 2018 David Nugent

Betting exchanges do of course allow anyone over the legal age to gamble to sign up and make use of them, and as such as long as you are old enough to gamble, have funds that you can deposit into a site then you can start to lay odds on any upcoming sporting event.

The whole idea of a betting exchange is that they are peer to peer betting sites that all punters to cut out the need to place bets with traditional bookmakers, and that in turn will often allow them to get much higher odds if they are placing bets, as those punters laying odds will be offering higher odds that bookmakers, to entice people to bet with them and take their odds!

However, there is nothing stopping bookmakers themselves signing up to a betting exchange and then simply laying off bets they have taken in their shops, or on-course bookmakers laying off large bets they have taken on a  racecourse.

Whilst that may seem perfectly legit, what many smaller independent bookmakers are doing is offering lower odds to their customers and then taking much higher odds on the betting exchanges to ensure they can make a guaranteed profit on such bets!

Betting Exchange Commission

I would have to say that punters and commentators who are saying bookmakers should be banned from using betting exchanges obviously do not understand the betting business, for it makes sense for a smaller bookmakers to lay off any big bets they have taken on-course or in their betting offices at  betting exchanges.

In fact, they are of course then paying the betting exchange commission fees and at the end of the day they are putting more cash and liquidity into the betting markets, and as such rather than acting immorally they are doing nothing wrong, it makes good business sense for them to lay off big bets and limit their exposure to a large winning pay-out.

Why Betting Exchanges Have Become so Popular

It is the simple fact that betting exchanges enable punters to get much higher odds as to the reason more and more punters and signing up to such betting sites, and as the over-rounds on each betting exchange are so low punters do then stand the chance of getting much bigger pay-outs if they bets and wagers win at such sites.

The commission structure enables the betting change to always guarantee a small profit on each winning bet played or laid, and as such the operators of betting changes are not bothered who signs up as long as they have plenty of liquidity on their betting markets.

As betting changes are required t get a full gambling license there is nothing illegal about them, well the ones that are licensed obviously and they do offer a very safe and secure type of gambling environment and offer something that punters are looking for, and as such they are going to be around forever in one form or another.

About The Author

David Nugent


Hi, my name is David and I am the chief editor of, I am proud to bring you all latest legal matters concerning the sports betting industry , I am a keen sports fan, dabbling in a few odd bets on my beloved Everton FC

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