Сентябрь 9, 2015

Issues with Liquidity – Wednesday 9th September by @stufferonald

Issues with liquidity & how a broker can help

The vast majority of the public never experience issues when it comes to sports betting. Bookmakers are profitable companies, and it’s down to the fact that 98%+ of sports bettors lose money in the long term – meaning bookmakers make money from 98% of their customers. That means 98% of punters are treated well by bookmakers, as the bookies know full well that these are the people that keep them in business.

For many, sports betting is a hobby, or something to make the weekend fixture list a bit more exciting. For some though, sports betting is their life, their job, or an additional income. For these guys, placing bets big enough to make it worthwhile can be difficult, especially if they’re profitable. Mainstream bookmakers are very wary of profitable sports bettors, and typically will do what they can to stop them making money at their expense. The most common practice is to limit the maximum stake allowed for any given bet. For someone looking to stake £500 per bet, suddenly being limited to 50p can be less than ideal, but it happens all too often in this industry.

Bet365 are arguably one of the better “traditional” bookmakers out there, as they’ll often allow larger stakes to be placed regularly, but they have the habit of closing accounts once they find out that you’re winning regularly and are betting sharply. So why does this happen? Simply put, for money. If they turn away winning bettors, they can increase their profits and please their shareholders, even if it means turnover is less.

For serious punters, where a tiny improvement on prices can make big differences over the course of a few months, liquidity is arguably more important than price itself. For someone who averages stakes of £5,000/bet, being able to place £5,000 on each bet becomes more difficult, especially using traditional bookmakers. Naturally, these punters have to look for something that suits their needs, and what the find are betting exchanges such as Betfair; along with Asian bookmakers that have much leaner margins (and therefore better prices) such as Pinnacle or SBO. Their business model works differently to your traditional bookmaker. They make money based on sheer volume. They don’t offer sign up bonuses, nor do they spend millions on marketing like the bookies you see on TV. They get the serious punters, and as a result their turnover is huge – as is their liquidity.

With the new point of consumption tax in the UK causing issues for these bookmakers, getting accounts with many of the bigger Asian bookmakers has become increasingly difficult. Working on such low margins, even with the high turnover they get, it wasn’t feasible for companies like Pinnacle and SBO to continue trading in the UK market. This was bad news for many, but sports brokerages provide a worthwhile alternative, allowing anyone from around the world to access Asian bookmakers – allowing them to bet with peace of mind when it comes to getting good liquidity, good prices, and no risk of being limited if you’re successful.

По @stufferonald

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