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Dominic Cummings odds-on still to be in post after June… The odds on Dominic Cummings still being in his post at the start of next… Betfair strike deal with Australian National… Seven ways in which betting exchange… Why the betfair betting exchange is… What is a Betting Exchange? Betting exchanges give you the chance to bet against other customers rather than the house. You can choose to play the role of punter and “back” selections as you would do with a normal bookmaker. Alternatively, you can position yourself as the bookie and “lay” selections against other customers. Instead, you can “trade” on a betting exchange which means backing and laying on the same betting market. Some customers use betting exchanges to trade positions and make a profit whatever the outcome of a sporting event is. What are the benefits of using a Betting Exchange? There are several. Customers can often get better odds as a “backer” by using a betting exchange rather than a fixed-odds bookmaker. 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Betting exchanges have low overhead because they don’t need expansive oddsmaking teams, so they charge a small fee on each bet — much less than the 5-10% a traditional sportsbook takes. You won’t be betting NFL point spreads at -110 at an exchange; you can effectively get them at -105 or better. Why Are There No Betting Exchanges in the United States? There are no betting exchanges in the U.S. because they would be limited to single states. And there wouldn’t be enough money in the pot to make an exchange work. The Federal Wire Act of 1961 prohibits the use of wire (phone and Internet) communication to transmit sports betting wagers and information that results in the recipient receiving money or credit as the result of a bet. Basically, it means you can’t gamble across state lines, and it’s still in effect today. The Supreme Court’s repeal of PASPA in May 2018 allowed states to create their own sports betting framework, but it’s contained to only that state. Anyone wagering on a New Jersey betting exchange could only bet against other people in New Jersey, and that’s an issue because the pool of users and money just wouldn’t be big enough. Mark Miscavage, an executive at London-based betting exchange Smarkets, told Casino.org that the Wire Act is the biggest hurdle to creating an exchange in the U.S. because it limits the size and liquidity of the betting pools. “The biggest hurdle for us would be able to pool liquidity, in this case, between all the states,” he said. “I don’t know that there is one state that’s quite big enough to provide the liquidity and volume needed to run an effective exchange just for one state.” Will We Ever See a U.S. Betting Exchange? Smarkets is entering the United States market with a traditional sports betting product, and the parent company of Betfair — the largest exchange in the world — owns FanDuel. These companies surely want to bring exchanges to America because they’re successful and popular in Europe. But there are two massive hurdles: Existing casino lobbies who don’t want to see it happen because they’ll lose customers for their traditional sportsbooks, and The Wire Act. The creation of a sustainable, successful betting exchange would likely require getting past the casino lobbies to overturn The Wire Act, which seems unlikely in the near term. 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