New Generation of Social Betting and Exchanges

[Crusherrr]

Putting out a feeler post and hopefully some of you guys will give me some feedback.

This isn't my idea- companies actually exist like this and it's not just an idea that exists in sports betting, it's also becoming more common in Poker.

Social betting allows you to bet against your friends, or a stranger, it doesn't matter. Whoever wants to take your bet is able to. The site makes sure that the bet will get settled, and there are sportsbook rules just like any other book would have in case a match gets suspended, a player forfeits, whatever the issue may be. There is no vig. Instead, you pay a monthly fee to get access to betting with this site. Want to wager up to $1,000 a month, $10 fee. $10,000 a month, $50 fee. UNLIMITED? $250 monthly fee.

This is just like the poker rooms all over Texas are doing. There is no rake. You pay a monthly or yearly membership, or you pay per hour(usually prepaid). This allows them to be legal as they are not taking money out of the pot. You are just paying for your seat/membership in a private club.

If you are a high-volume player, it seems silly to not want to bet on a site like this. The main issue is the liquidity and player base. If the site doesn't have any players/bettors and you are only getting $25 of your $500 bet filled it's not a great option.

I'm hopeful that Social Betting(Already Exists) and Exchanges(we are getting some VERY SOON) are the future of sports betting. I think the Draftkings surcharge will get worse and be added to more states. People wake up to what they are spending or being charged when they see annoying fees or taxes/surcharges.

Would love everyone's feedback on what could make Social Betting better, and whether or not you think you may switch some of your betting volume to sites that offer it or some of the new sweepstakes exchanges that will be launching.

[Optional]

Like you say liquidity is the issue.

I think what needs to happen is something like how licensing works in Australia. Each state honors all the other states licenses for betting exchanges so USA can create one large pool of players.

Even Betfair fell into the trap of needing market makers to prop up liquidity. Not sure how anything but a national, and licensed, setup could achieve that.

[Crusherrr]

Like you say liquidity is the issue.

I think what needs to happen is something like how licensing works in Australia. Each state honors all the other states licenses for betting exchanges so USA can create one large pool of players.

Even Betfair fell into the trap of needing market makers to prop up liquidity. Not sure how anything but a national, and licensed, setup could achieve that.

Well I'm more interested in getting feedback on Social betting, but I did mention exchanges. There are several exchanges launching across the states (42+ states) before Week 1 NFL. They are using the Sweepstakes model. One had a license in Colorado(NoVig) and one in New Jersey(ProphetX) and they will now be able to be available in most states. They are working with MM's to provide liquidity for a %. The liquidity should be available.

What can sites do to gain traffic and get more players to learn about these options. Most are just blinded by the constant ad spend that DK/FD and several others have and stick with the traditional sportsbook model. If we can help educate bettors and get them to these sites its better for them and better for US.

[Optional]

I'm not sure I understand how social betting is different to an exchange, functionally for the end user.

[bookie]

Social betting and exchanges both fall into the peer-to-peer category, and technologists have been trying to make that model work ever since the Internet became a thing. It makes so much sense, but the necessary liquidity has never come close to being achieved. Dozens and dozens of startups, legal and less legal, have crashed and burned chasing the peer-to-peer sports betting dream.

ProphetX will be the test balloon. All serious players have their fingers crossed hoping ProphetX can break through and the government won't "clarify" the loophole that allows them to operate across state lines. I've got my fingers crossed too, but I'm not holding my breath.

[bookie]

I'm not sure I understand how social betting is different to an exchange, functionally for the end user.

Same. It's a marketing distinction, not a practical one.

[Optional]

Social betting and exchanges both fall into the peer-to-peer category, and technologists have been trying to make that model work ever since the Internet became a thing. It makes so much sense, but the necessary liquidity has never come close to being achieved. Dozens and dozens of startups, legal and less legal, have crashed and burned chasing the peer-to-peer sports betting dream.

ProphetX will be the test balloon. All serious players have their fingers crossed hoping ProphetX can break through and the government won't "clarify" the loophole that allows them to operate across state lines. I've got my fingers crossed too, but I'm not holding my breath.

Back in the day Betfair had plenty of liquidity on every market they hung. For a few years, until they got legislated into oblivion.

It was awesome back then.

[Crusherrr]

I'm not sure I understand how social betting is different to an exchange, functionally for the end user.

In the sense that social betting seems to be membership based and exchanges will charge a % of the bet for being the market maker. I've seen sites do a small spread and I've seen sites take a 1% commission on the winning bet. Social betting you could save a lot more money if you are betting a lot each month/year.

It appears that NoVig is planning to take a 1-4% spread in less liquid markets as they are providing the liquidity themselves and if you are a high volume (pro/hedge fund type) there will be an additional fee structure added.

[crinkledaces]

Betopenly is a decent peer to peer betting site. They take BTC Paypal and *************** for deposit methods and the same for withdraw. They charge 1% on the total bet(If you bet 100 and it gets matched you would pay 2 bucks). Very cool site they pay out on time and there is decent liquidity. They allow you to be the house on parlays and have futures and props. Sometimes there lines are a bit off and you can actually arb the lines posted. Another site that I use is play.Kutt. There fees are higher and site is clunky imo. I've always dreamed of opening my own exchange and burying all these POS books that restrict and lower limits of players but Optional is right LIQUIDITY IS THE KEY. If it could be handled like the futures market where there are market makers in place to take trades when there is low liquidity that would be the key. I don't see this country uniting to all exchanges cross borders because the books pay off everyone with their giant pockets.

[crinkledaces]

Not sure why DD got stared thru but ACH hopefully I'm not doing anything wrong here

[Optional]

Not sure why DD got stared thru but ACH hopefully I'm not doing anything wrong here

It's an old auto-censor. Software changing so they dont want to mess with the current complex/clunky setup to change anything that isn't vital.