Best Betting Exchanges to Lay, Back and Trade Bets in 2024

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Prophet Exchange was one of the first sites to launch in the U.S. when it went live in New Jersey in 2022. It closed operations in the summer of 2024 but plans to return soon.

Kalshi is an exchange and prediction market that recently received approval to accept wagers on U.S. election markets and political outcomes.

As betting exchanges have a longer history in the UK and Europe, there are more options available across the pond, including:

• Betfair
• Betdaq
• Finspreads

Here is a step-by-step guide to signing up with a betting exchange like Sporttrade:

1. Click on the banner above to be automatically directed to the Sporttrade sign-up page.
2. Complete additional verification steps, such as submitting a government-issued ID if required.
3. Deposit funds into your new account to begin trading or betting.
4. Carefully read and understand the terms and conditions during the registration process.

People use betting exchanges for better odds, more control over bets, and the ability to lay bets (bet against outcomes). They also appreciate the transparency and peer-to-peer betting format.

Here’s what to look for when picking a betting exchange, in a nutshell:

An exchange operates differently from traditional betting sites. In an exchange, individuals bet against each other rather than against a sportsbook. Users can either offer odds to others (acting as a sportsbook) or accept odds from others.

A sports betting exchange is a platform where individuals bet against each other at sports events. Unlike traditional sportsbooks, exchanges allow users to back and lay bets, offering more flexibility and often better odds.

This system allows for "back" bets (betting on an outcome to happen) and "lay" bets (betting against an outcome). The exchange facilitates these transactions and typically charges a commission on winnings, with varying commission rates. This peer-to-peer betting format often leads to better odds and more betting options than traditional bookmaking.

But gone are the days when such platforms were seen as intricate and exclusive to seasoned bettors. These peer-to-peer exchanges have opened doors to a broader audience, changing the game by allowing users to bet against one another, not just a sportsbook.

This shift puts bettors in the driver's seat, offering them the chance to harness competitive odds for smarter, more controlled gambling choices.

The main difference between an exchange and traditional sportsbooks is that, rather than betting against a gambling company, you are betting against another bettor similar to yourself. This bettor will have opposite views to you on the outcome of an event and, therefore, is likely to match your odds (matching becomes more likely the bigger stakes you wage).

So, for example, if you think Manchester United will beat Manchester City, you will bet on this outcome. The person against whom you are betting is wagering that an opposite outcome will occur. So, if you make a bet, you do not stand to lose to the betting sites but to a fellow backer instead.

Using a betting exchange instead of traditional online betting sites has many benefits. Perhaps the most obvious is the fact that you are given the opportunity to offer your own odds on a horse, soccer team, or any other sporting entity and wait for your odds to be matched.

If your odds are matched, then you probably have better odds than you'd find if you bet with normal online sportsbooks since bettors, by nature, want decent odds. In all likelihood, the price will probably also be longer due to the fact that you cut out the "middle man" that gambling companies ultimately represent. Both these factors give you the chance to enhance your odds and allow you to stay with one betting site rather than rooting through different companies' offers.

Anybody can place odds and hope that someone else will follow them. Because exchange is a free market, bettors are usually inclined to try and make their odds better, and this is the main difference when compared with other sportsbooks. The main benefit is that you are paired with a public member rather than going through a company to get your odds.

A sports betting exchange primarily earns commissions, which are charged on the bettors' net winnings. Unlike traditional sportsbooks, which make money by offering less favorable odds, exchanges offer more competitive odds because they do not take on any betting risk themselves.

The commission rate varies but is typically a percentage of the winning bet. This model incentivizes the exchange to provide a platform with high liquidity and a wide range of betting options to attract more users and transactions.

Betting exchanges in the United States often display odds in American odds format. This format shows odds as either a positive or a negative number. A positive number indicates how much profit you would make on a $100 bet if it wins.

For example, +300 means you would win $300 on a $100 bet. A negative number shows how much you must bet to win $100. For instance, -200 means you need to bet $200 to win $100. This format is straightforward and commonly used in American sports betting.

The exchanges are worth exploring because they offer the "lay" outcome, which can be useful to a bettor against backing favorites. In addition to that, the user-friendly service, attractive odds, and flexible betting options offered by sites such as Betfair Exchange and Sporttrade will help you see why betting exchanges are always an appealing alternative to things such as in-play betting for bettors.

One unique advantage of the betting exchange market is that bettors can lay and back. None of the top sportsbooks practices this concept, and exchanges have discovered a niche.

The idea is a simple one: if you think an outcome is not going to happen, for example, if you do not think that the Chiefs will beat the Patriots at the given odds, then you can place a lay bet that indicates your desire for Chiefs to lose to the Patriots. It is the same with all other sports like soccer and horse racing.

This is a very popular method among bettors, particularly in live betting, when the odds are more favorable. If you think a team will lose at halftime when it is 1-0 up, the lay odds are better than they would have been at the start of the match. This is the general rule of thumb for all traditional sportsbooks regarding standard bets but with the added option to lay rather than back.

The "lay" bet is possibly what exchanges are most famous for. This is the only service that allows you to bet against an outcome.

This unorthodox option is a relatively new scheme offered to bettors, and it is popular because, for example, in a competitive race, the chances of the favorite horse winning are most likely lessened. Using the same ‘matching' process as you find when you are ‘backing' a horse, you can lay bet a horse to lose and wait to see if your bet comes through.

A back bet at an exchange is a wager placed on a specific outcome to occur. For example, if you back a team in a football match, you bet on that team to win.

If the team wins, you win the bet. This type of bet is similar to traditional betting with a sportsbook, where you bet on the likelihood of a particular event happening. In exchange, you're betting against other users who are offering the odds rather than betting against the sportsbook.

Responsible gambling with betting exchanges involves self-awareness and control. Bettors should limit their deposits, losses, and time spent on the platform. It's important to gamble only with money you can afford to lose and not chase losses. Betting exchanges often provide tools for self-exclusion and links to support services for problem gambling. Understanding the risks and maintaining a disciplined approach is crucial for responsible gambling. 

Remember, gambling should be for entertainment, not a way to make money.

As the U.S. sports betting scene continues to mature, betting exchanges are set to become increasingly pivotal. Their innovative, transparent approach attracts an ever-growing audience eager for a dynamic and deeply rewarding betting experience. Keep following Gambling.com to explore what's happening in the sports betting exchange market.

People use betting exchanges for better odds, more control over bets, and the ability to lay bets (bet against outcomes). They also appreciate the transparency and peer-to-peer betting format.