Betting Exchanges: Disruptive Elements At Work

The betting exchanges threaten to disrupt the dominant market position of the Ladbrokes and William Hills of this world. Their competitive advantage is that they offer the punter value alongside a new product architecture which is more easily accesible, transparent and versatile than anything that has gone before. But with regulation they may become the victims of their own success.

The betting exchanges are a disruptive technology. They have shaken up the structure of the UK's betting industry through giving rise to a new industry segment known as person to person betting.

The traditional bookmakers claim that they are illegal but the UK Government has made it clear that it will not close down the betting exchnages
down.

In a post-regulation environment, however, the leading betting exchange companies such as Betfair may quickly lose their first mover advantage. Indeed, their best hope of survival may lie with them been taken over. A clear case of the biter bitten.

Niall O'Connor a leading internet betting analyst explores the future of the betting exchanges.