How the Betfair Exchange works, and whether you can use it in the US

Betfair Exchange is a betting exchange: customers bet against each other rather than against a bookmaker, and Betfair takes a commission on net winnings.

Our Betting Exchange is the first platform ever built to allow for customers to bet against one another rather than betting against a bookie.

We transformed the landscape of the sports betting industry when we pioneered the betting exchange in 2000

Backing is betting that something happens; laying is betting that it does not, and the layer’s risk is what the backer would win.

The selection you back is the outcome that you want to happen.

A lay bet is to place a bet for something not to happen. * In a football match, laying a team would be to bet for them not to win. So you will win your bet if they lose or draw. * In a horse race, laying a horse to win, would be betting for any other outcome then that horse winning. When placing a lay bet, rather than choosing how much you want to risk (your stake) you choose how much you want to win

The amount you pay is known as 'liability'. The liability is what the backers will win in the event your bet is a lose.

For a bet to be struck, it must be matched with another customer, someone who has an opposing opinion.

Until your bet offer is matched by someone else, you do not yet have a bet. If nobody matches your bet before the market closes or is turned In-Play, then your bet will 'lapse' and you will get your money back.

The Best Price Execution feature enables customers to get matched at the best available odds on the Exchange.

Commission is charged only on net winnings in a market: net winnings times the Market Base Rate, less any discount. Losing bets pay nothing.

Betfair charges Commission only on your net winnings on a market.You do not pay commission on losing bets.

Commission = Net Winnings x Market Base Rate x (100%-Discount Rate).

The 'Market Base Rate' (MBR) is the maximum commission rate you pay on some markets and is determined by your country of residence.

Betfair's own worked example uses a 2% rate:

You are opted into the Basic package of My Betfair Rewards. The commission rate in this package is 2%.

The full fee table is on Betfair fees.

Betfair also runs prediction markets on the same exchange, with the same commission:

Betfair Predicts is a prediction market on the Betfair Exchange

Yes, commission is charged on net winnings using the following formula: * Commission = Net Winnings × Market Base Rate × (100% - Discount Rate)

No. Betfair’s terms list the United States among its prohibited territories, and its only US exchange, for New Jersey horse racing, stopped taking wagers on 1 October 2020.

you are not located in a country where the use of the Services is prohibited, including Australia, Bulgaria, Canada, China, Cyprus, Denmark, France (and French territories), Germany, Italy, Macau, New Zealand, Nigeria, Poland, Romania, Slovenia, Spain, Taiwan, Turkey, the United States of America (and US territories), Crimea, Cuba, Iran, North Korea, Sudan, South Sudan, Syria, and any other country with a comparable legal situation (each a "Prohibited Territory")

Beginning Oct. 1, Betfair will no longer accept exchange wagers from its New Jersey customers

That applies in every state, New Jersey, New York, California and Texas included. US exchanges you can use are on Betfair alternatives, and where each is legal is on prediction market legality.

Betfair is owned by Flutter Entertainment plc, which also owns FanDuel.

Betfair is now part of Flutter Entertainment plc, which is an international sports betting and gaming operator

The Exchange is provided by TSE Malta LP for UK registered customers, and by Betfair International Plc for non-UK registered customers.