Platform competition Betfair and the UK market for sports betting
                     PLATFORM COMPETITION: BETFAIR AND THE UK MARKET FOR SPORTS BETTING
The UK sports betting industry has undergone significant changes over the 
past decade, with online platforms like Betfair revolutionising the way 
people gamble. Betfair is a leading online platform for sports betting in the 
UK, operating in a highly competitive market. The platform has 
differentiated itself from competitors through its unique betting exchange 
model, which allows users to bet against each other rather than against the 
bookmaker. This article will explore the platform competition between 
Betfair and other major players in the UK sports betting market.
HISTORY OF BETFAIR
 Betfair was originated in 2000 by Andrew Black and Edward Wray, with the aim 
of creating a platform that would enable users to place bets against each other, 
rather than against the bookmaker. This model, known as a betting exchange, 
was a significant departure from the traditional model of sports betting, which 
relied on bookmakers setting odds and taking bets. Betfair's betting exchange 
model proved to be highly popular, and the platform quickly gained a loyal user 
base.
 In 2016, Betfair API Games Development merged with Paddy Power to form 
Paddy Power Betfair, which was subsequently renamed Flutter Entertainment in 
2019. Today, Betfair remains a key brand within the Flutter Entertainment 
portfolio, alongside other leading brands such as Paddy Power, FanDuel, and Sky 
Bet.

MARKET OVERVIEW
 The UK sports betting industry has seen tremendous growth in recent years, 
with the total gross gambling yield (GGY) reaching £14.4bn in 2018, according to 
the UK Gambling Commission. The majority of this revenue comes from online 
gambling, which accounts for around 40% of the total GGY. Sports betting is the 
largest segment within online gambling, representing nearly half of the total 
online GGY.
 The UK sports betting market is highly competitive, with many major players 
vying for market share. The leading bookmakers in the UK include Bet365, 
Ladbrokes Coral, William Hill, Paddy Power, and Betfair. Each of these companies 
operates a large online platform for sports betting, and each has its own unique 
strengths and weaknesses.
BETFAIR'S BETTING EXCHANGE MODEL
 Betfair is a unique platform in the sports betting industry, as it operates on a 
betting exchange model rather than a traditional bookmaker model. This means 
that users can bet against each other rather than against the bookmaker, and 
Betfair takes a commission on each transaction. The betting exchange model is 
popular among experienced gamblers, as it offers better odds and more 
flexibility than traditional bookmakers.
 One of the advantages of the betting exchange model is that users can set their 
own odds and choose which bets they want to take. This means that users can 
often get better odds than they would at a traditional bookmaker. Additionally, 
the betting exchange model allows users to lay bets, which means betting 
against a particular outcome. This can be especially useful for hedging bets or 
taking advantage of a changing market.
COMPETITIVE LANDSCAPE
 While Betfair is a major player in the UK sports betting market, it faces stiff 
competition from other major bookmakers. Bet365 is the largest bookmaker in 
the UK, with a market share of around 20%. The company offers a range of 
sports betting products, including in-play betting and live streaming of sporting 
events. Bet365 also offers a range of other products, including casino games and 
poker.
 Ladbrokes Coral is another major player in the UK sports betting market, with a 
market share of around 16%. The company operates a large online platform for 
sports betting, as well as a network of retail betting shops across the UK. 
Ladbrokes Coral also offers a range of other products, including casino games 
and virtual sports.
FACTORS CONTRIBUTING TO BETFAIR'S SUCCESS
 Several factors have contributed to Betfair's success in the UK sports betting 
market:
 Innovation: Betfair's betting exchange model was a significant innovation in the 
sports betting industry, and one that proved highly popular with users. The 
ability to place bets against other users, rather than against the bookmaker, 
gave users greater control over their bets and enabled them to take advantage 
of more favorable odds. Betfair has continued to innovate over the years, 
introducing new features and products such as in-play betting and virtual sports.
 Brand recognition: Betfair has established itself as a well-known and trusted 
brand in the UK sports betting market. The company has invested heavily in 
marketing and sponsorship, including high-profile partnerships with major sports 
teams and events.
 User experience: Betfair's platform is highly user-friendly and intuitive, with a 
range of features designed to enhance the user experience.
FAQS
 Which country witness the fastest growing sports betting?
 Sports betting is most famous in China and India. However, Europe comes after 
them in predicting an increase in sports betting. 
THANK YOU