Category: English

Betting exchanges were introduced in 2000. Initially, concerns were raised about their affecting the integrity of racing due to them allowing bets on losing horses. These concerns have now been addressed with safeguards in place to monitor irregular patterns of betting. Due to the competitive prices offered, they have now become a popular way of betting.

A betting exchange acts as an agent to allow individuals to place bets with one another, charging a commission for its services. Suppose you wanted to have a bet with your friend on the favourite on the first race at Ascot. You think the horse will win and your friend thinks the horse will lose. You agree to each stake £50 and whoever wins takes the money staked. If your horse wins, you win the £100 and if your horse loses your friend wins the £100. In this situation, you have made a bet at ‘evens’ that your horse will win and your friend has made a bet at ‘evens’ that the horse will lose.

A betting exchange makes it possible for you to make bets like this except with strangers. They provide the facilities to make the betting possible and charge a commission for their services. They provide a website that allows you to come into contact with other people who want to bet and the means to transfer money from one person to another. Both you and the other bettors remain anonymous to each other. The betting exchange will keep details of the bets you have placed so that any foul play, such as people trying to manipulate the markets, can be investigated.

Unlike a bookmaker, the betting exchange does not decide the prices of the horses, instead the individuals making bets do. In the example just given, each person had agreed to odds of evens. However, they could have decided to bet at different odds. Suppose your friend wanted to bet but was only willing to stake £25 and you were willing to bet £50. You would then be betting at odds of 1/2 that your horse would win and your friend would be betting at odds of 2/1 that the horse would lose. If the horse wins you will win £75 less commission. If the horse loses your friend will win £75 less commission. If you were placing the bet with a betting exchange you would basically indicate that you wanted to make a bet of 1/2 on the horse and therefore needed someone to make the opposite bet of 2/1. As soon as someone agrees to match your bet, it is made. 

This arrangement gives greater flexibility than betting with a bookmaker. With a bookmaker, you can only bet on horses to win. With a betting exchange you can also bet that a horse will lose. With a traditional bookmaker, a horse may have a price of, for example, 4/1 and you can bet that the horse will win at 4/1. The bookmaker is effectively backing the horse to lose at 1/4. With a betting exchange, you also have the opportunity to take the place of the bookmaker and bet that the horse will lose at 1/4.

Minimum stakes vary but are around £1 to £2. Unlike with a bookmaker there is no maximum bet. As long as you can find someone to match your bet, you can stake as much as you wish.

Commission is charged at around 1 to 5 per cent. Different exchanges calculate the commission in different ways. Some charge commission on all bets placed (stakes) and others charge commission on net winnings. Some exchanges reduce the commissin for loyal customers so that the more you bet the less the commission charged. Currently bets are tax free, however this may change m the future as governments introduce new legislation.

Bookmakers offer a wide variety of bets. Some of the most common are as follows.

 

Win single
This is one bet on the winner of a race.

 

Each way single
Two bets, one bet for the selection to win and the other for it to be placed. The place bet is settled as a fraction of the win odds. The number of places and the fraction of odds vary depending on how many runners there are and the type of race as shown below.

Number of     Type of race       Number of     Fraction of
runners                                 places           win odds
16 or more     handicap           4                 1/4
12 to 15         handicap           3                 1/4
8 to 15           not applicable    3                 1/5
5 to 7             not applicable    2                 1/4
4 or less         not applicable    1 (win only)   both bets win

 
Double
A win double is one bet on two runners to win two different races. If the first selection wins, the returns are put onto the second selection.
An each-way double is two separate bets of a win double and a place double on two runners in two different races. The win bet is the same as a win double. For the place part of the bet if the first selection is placed the returns become the stake for the second selection to be placed.

 

Treble
This is one bet on three selections in three different races. If the first selection wins, the returns are put on to the second selection and if the second selection wins the returns are put onto the third selection.

 

Accumulator
A bet on any number of selections, in different races where the winnings on the first horse go onto the second and then onto the third and then onto the fourth and so on. It is one bet win and two bets each way. Obviously, the returns can be quite large, depending on the prices of the winning selections. It is therefore worth checking that your winnings would not exceed the bookmaker’s maximum payout.

 

Straight forecast
Nominating which selections will finish first and second in the correct order.

 

Reversed forecast
Nominating two selections to finish first and second in either order. It is two bets.

 

Combination/full cover forecast
Selecting any number of runners in one race to finish first and second in either order. To calculate how may bets there are, Simply multiply the number of selections by one number fewer.

For example:

 

Tricast
Selecting three runners in the same race to finish first, second and third in the correct order.

 

Trixie
Three selections in three different races, comprising three doubles and one treble. It is four bets win and eight bets each way.

 

Yankee
Four selections in four different races, comprising six doubles, four trebles and one fourfold. It is 11 bets win and 22 bets each way.

 

Super yankee/Canadian
Five selections in five different races, comprising 10 doubles, 10 trebles, five fourfolds and one fivefold. It is 26 bets win and 52 bets each way.

 

Heinz
Six selections in six different races comprising 15 doubles, 20 trebles, 15 fourfolds, six fivefolds and one sixfold. It is 57 bets win and 114 bets each way.

 

Super heinz
Seven selections in seven different races, comprising 21 doubles, 35 trebles, 35 fourfolds, 21 fivefolds, seven sixfolds and one sevenfold. It is 120 bets win and 240 bets each way.

 

Goliath
Eight selections in eight different races, comprising 28 doubles, 56 trebles, 70 fourfolds, 56 fivefolds, 28 sixfolds, eight seven folds and one eightfold. It is 247 bets win and 494 bets each way.

 

Patent/twist
Three selections in three different races, comprising three singles, three doubles and one treble. There are seven bets win and 14 bets each way.

 

Lucky 15
Four selections in four different races, comprising four singles, six doubles, four trebles and one fourfold. It is 15 bets win and 30 bets each way. If there are four winners, a 10 per cent bonus is paid, usually at starting price. If there is only one winner, double the starting pnce odds are paid. These bonuses and consolations apply only to the win part of the bet. So if an each-way lucky 15 has just one placed horse, double the odds is not paid on the placed selection. Similarly, if one selection wins and one is a non-runner, the consolation is not paid.

 

Lucky 31
Five selections in five different races, comprising five singles, 10 doubles, 10 trebles, five fourfolds and one fivefold. It is 31 bets win and 62 bets each way.

The bonuses paid vary with different bookmakers. Some pay a bonus on four winners and five winners, others pay a bonus on only five winners. It is certainly worth shopping around to find the best offers. A consolation of double the starting price odds is paid for one winner.

 

Lucky 63
Six selections in six different races, comprising six singles, 15 doubles, 20 trebles, 15 fourfolds, six fivefolds and one sixfold. It is 63 bets win and 126 bets each way.

Bonuses vary with different bookmakers. A 10 per cent bonus is usually paid for five winners. For six winners, the bonus is likely to be between 15 and 25 per cent. A consolation of double starting price odds is paid for one winner.

Frenchmen Francois and Louis Blanc invented roulette with a single zero in 1842. They removed the double zero from the wheel and haphazardly rearranged the numbers 1 to 36. Despite removing one of the pockets, they kept the payout odds for a winning number at 35/1. This cut the house advantage to just 2.7 per cent, which proved extremely popular with gamblers. Since gambling had been made illegal in France in 1837, they introduced the game to Bad-Homburg in Germany. It was a great success. When gaming was outlawed in Germany, Francois and his son Camille brought the game to Monte Carlo.

In 1857 Prince Charles III of Monaco decided to introduce gambling to the principality to boost its finances. Gambling had just been outlawed in Germany. This prompted Leblanc to bring his game of single-zero roulette to Monte Carlo. Monte Carlo had the monopoly on roulette until 1933.

Two main versions of the game are played online – American and European roulette. Both games have the same basic principle of predicting the winning number but the betting layout and wheel are different.
Players bet on which number the ball will land in after it has been spun around the wheel. Bets are made by placing chips on the layout, which is marked with the same numbers. A wide choice of different bets can be made including individual numbers and groups of up to 18 numbers. Bets made on the winning number are paid at set odds. To start playing, onscreen chips are bought. To make a bet, players touch on a chip with their mouse pointer and drag it to the correct betting position. A timer indicates how long a player has left to bet. The ball is spun from the last winning number. So if the last winning number was 36, on the next spin the starting point of the ball will be number 36. The winning number will appear on the screen. The winning bets are automatically calculated and paid by the software.

Keep a notebook to record details of your online gambling activity. It is very easy to delude yourself into thinking that you do not lose. A record also helps you judge how well you are playing. If your records reveal that you are losing too much, too often, then you can analyse what is going wrong and take measures to reduce losses. Maybe you need more practice. Maybe you need to modify your betting strategy.

If you are gambling in the USA you will find the record useful if you have a big win. In the USA, gambling wins are subject to tax by both the IRS and many state governments. If players win more than $600 on the sports betting, $1200 on slots or $1500 on keno, the casino will notify the IRS. Players may offset gambling losses against winnings, but it is necessary to keep detailed records. The IRS requires players to keep an accurate diary. detailing dates, bets made, address of gaming establishment, names of people with you and the amount won or lost. Proof of expenditure like casino receipts and bank records will need to be shown if you are audited.

Know when to stop gambling
It can take an enormous amount of discipline to stop betting, particularly If you are on a winning streak. It is possible to get carried away by the excitement of the game. You may have intended to spend only an hour gambling but you’re on a winning streak, so you continue. Because you are betting with your winnings rather than the initial stake money, you decide to place larger bets. Your next best loses, what do you do? For a lot of people, the tendency is to bet more heavily to recoup that loss. This will usually continue until you run out of funds.

Try to decide in advance at what stage you are going to stop betting. Set yourself an amount to win or lose or impose a time limit. Stop playing when you have reached your limit. As soon as a winning streak stops, either bet smaller stakes or stop playing. This approach will minimize your losses.

You should always stop playing if you are tired. You need to ensure that you are concentrating on the game. When you are tired, you take longer to make decisions and are more likely to make mistakes.

It is also wise to avoid alcohol. It tends to slow down your reactions and your ability to think. It also lowers your inhibitions and makes you less likely to care about losses. You should certainly never play if you are drunk.

 

Staying in control
The majority of gamblers are able to keep to their budgets and bet without its becoming a problem. However, for some people, it can become addictive, leading to financial ruin and family breakdown. If you start losing more than you can afford, seek help.

You can recognize that you have a problem if you:
•    view betting as a way of earning money
•    continually exceed your budget
•    bet money that was intended for living costs
•    borrow money for betting
•    take days off work to bet
•    spend all your free time betting
•    find your betting interferes with family life.

There are organizations that can offer solutions. Many have a telephone help line where you speak to a councillor. They also hold meetings where gamblers can discuss their problems and find solutions. There are also organizations that support  gamblers’ families. Your general practitioner will also be able to offer advice on counselling.

Some sites also offer self-exclusion schemes. During the period of self-exclusion, they will not take bets from you.

 

GamCare certification
GamCare is a registered charity that is the UK’s national centre for information, advice and practical help regarding the social impact of gambling.
It gives certification to businesses that implement the GamCare code of Practice for Remote Gambling, which involves Implementmg the following practices:

•    age verification systems
•    controls for customer spend
•    reality checks within game screens
•    self-exclusion options for players
•    information about responsible gambling and sources of advice and support
•    social responsibility content and sources
•    training for customer services in problem gambling and social responsibility.

Details of accredited companies are available on the GamCare website