One betting exchange, read closely.
This site reviews a single operator: Betfair, the betting exchange licensed in the Northern Territory. It explains how backing and laying work, what the exchange charges, and which rules apply to betting online in Australia.
A bookmaker sells you a price. An exchange finds you an opponent.
| Point of comparison | At a bookmaker | On a betting exchange |
|---|---|---|
| Who is on the other side of your bet | The bookmaker. | Another customer. The exchange only matches the two of you. |
| Who sets the odds | The bookmaker, with its margin built in. | Customers. Each one states the odds they will accept, and a bet exists once two of them agree. |
| What you can bet on | That something will happen. | That it will happen (a back bet), or that it will not (a lay bet). |
| How the operator is paid | From the margin in its odds. | A commission taken from your net winnings in a market. |
| Whether your bet is taken | Yes, at the odds shown, up to the bookmaker's limit. | Only as far as someone takes the opposite side. The rest stays unmatched. |
Backing, laying and commission, with the sums worked through