Why do I have to pay commission?
Why do I have to pay commission at betting exchanges?
Betting Exchanges such as Betfair charge a small commission on winning bets. This is because when you place a bet on the exchange, you are betting against other individuals like yourself. This means that when you lose a lay bet, the losing stake goes to the customer that backed the bet, meaning that the exchange company doesn’t win your stake. This is why they often take a small commission on any winnings.
This is different to regular bookmakers, where you are betting against the company itself. So the bookmakers are laying any back bets you place with them, in the same way that another customer would do on the betting exchange.
When we lay a bet on a betting exchange, we effectively play the role of a bookmaker, just on a much smaller scale.