smarkets
Betfair

With Betfair's pending IPO, Smarkets sees £1m traded on its social 'betting exchange'

Next Story

Dept. Of Advertising: Check Into Cheryl Cole Billboards With Facebook Places

Smarkets, the London-based social gambling startup, has announced that it’s seen over £1 million traded on its ‘betting exchange’ since it publicly launched in February. The site, which competes with the likes of Betfair and to some degree intrade and betdaq, lets users set their own odds and bet against each other before and during events.

The company has also revealed that it’s finally going to expand into horse racing. Citing the poor user experience of existing offerings, which he doesn’t directly name, CEO and co-founder Jason Trost says that Smarkets made the decision to take their time so that they could get “horse betting right”. That’s likely a coded reference to the challenge the startup faces jockeying for position in light of the much larger Betfair’s pending IPO, which could be valued as high as £1.7 billion.

In fact, the much younger Smarkets is now marketing itself as the “simple, social alternative” to its older rival, an opportunistic but probably smart move. “By offering a better experience to users, we believe that we can build on our early success and become a powerful alternative to more well-established betting exchanges such as Betfair”, says Trost.

As for that figure of £1m traded, Smarkets says that it’s particularly benefited from the summer’s two biggest events in the UK – the World Cup and General Election – which have helped the site rack up around £20,000 worth of betting per-day. Smarkets charges a 1% commission per bet compared with Betfair’s 5%, so that’s roughly £5,600+ per month, but says that the move into horse betting should see it turn cash-positive.

The interest seen in betting on politics seems to have taken the company by surprise too: ‘Since then we’ve been discovering that there is a huge appetite for betting on politics and current affairs, which we’ve been quick to capitalise on”, says Trost.

Smarkets was founded in 2008 by Trost and Hunter Morris (CTO) and is backed by private European investors, including Stefan Glaenzer (the first investor and former exec chairman at Last.fm).

  • http://blog.smarkets.com/2010/10/25/up-up-and-away-surpassed-1-million-traded/ Up, up and away! Surpassed £1 million traded « Smarkets Blog

    […] weekend saw a bit of Smarkets history being made. As Techcrunch have reported, shortly before 3:00 PM on Saturday a small bet on a League Two football match took Smarkets’ […]

  • http://www.amuzze.com Pete

    well done on the £1 million!

    Your assumption that 1% commission is equal to £5,600 a month is wrong. It will be much lower than that because of trading customers.

    Although Betfair charge 5% commission there’s hardly any event where they make more than 1% in revenue because of back/lay trading.

  • Brett

    How is this more of a ‘social betting’ experience as opposed to matching a bet on Betfair?

  • Coolsbabbb

    Jordan Shoes commercials that were extremely popular at the time. The Cheap Jordans same commercials that featured Lee as Mars Blackman insisting that “it’s got to be the Cheap Jordan Shoes“! These ads were quite effective in the marketing of the Air Jordan IV. In fact, a pair of Jordan 6 was featured in Lee’s movie “Do The Right Thing”.

  • Hellobabys

    With the firm backing of the top players in the NBA, both past
    and present, cheap jordan
    shoes
    are a good choice if someone is looking for shoes. The
    lines are normally designed in part by the player themselves to add a
    special jordan
    6
    signature touch to them. Because of that added attention the
    choices are as much as a fashion statement as they are retro jordans
    shoes.

  • Hellosbbbs

    With the firm backing of the top players in the NBA, both past and present, cheap jordan shoes are a good choice if someone is looking for shoes. The lines are normally designed in part by the player themselves to add a special jordan 6 signature touch to them. Because of that added attention the choices are as much as a fashion statement as they are retro jordans shoes.

blog comments powered by Disqus