Betfair in trouble?

I stumbled upon an article that draw my attention about Betfair. Everybody knows that they now charge 60% from their premium customers and many think that this greed will be their downfall. Their shares went from a 16 Pound best to 0.65 Pounds yesterday!! That is a big fall. Changing their CEO didn't bring improvements.

The exchange loudly trumpets that its prices are 20 per cent better (on average) than bookmakers' starting prices. Betfair also enables punters to "lay" horses to lose as well as backing them to win. And then there's the revolution of betting "in running" while a sporting event is under way.

Well, in terms of pricing, bookmakers have worked out a very punter-friendly offer: the "guaranteed price". Let's say you back a horse at 5-1 but the odds drift and the starting price is declared at 10-1. With the guaranteed price the bookmaker will pay you at 10-1. If the price comes in to say 2-1, no problem. You'll get still the 5-1 at which you placed the bet.

Most bookies also now offer betting "in running" (particularly good for football or cricket). But the ability to "lay" is still unique to Betfair – and the prices you can get on outsiders still make its offer potentially compelling.

You should read THIS.

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