Guide · 5 min read
Betting exchanges explained
On a betting exchange you bet against other people, not against a bookmaker. That allows lay bets and big stakes, but costs commission and depends on liquidity. And for residents of Austria and Slovakia, the major exchanges are not available. This guide explains how exchanges work and what to use instead.
Updated 22 October 2026
Contents
Exchange or bookmaker
A bookmaker sets its own odds and is always the other side of your bet. If you win, it pays. It builds a margin into its prices, and customers who win regularly are often limited (see bookmaker limits).
A betting exchange works like a marketplace. Someone who wants to bet on a result (back) is matched with someone who wants to bet against it (lay). The price comes from supply and demand. The exchange carries no risk itself and earns commission on winnings.
| Bookmaker | Betting exchange | |
|---|---|---|
| Other side of your bet | the bookmaker | other customers |
| Who sets the odds? | the bookmaker | supply and demand |
| How the operator earns | margin in the odds | commission on net winnings |
| Betting against a result (lay) | no | yes |
| Maximum stake | set by the bookmaker, often limited | as much as is offered on the other side |
Commission and liquidity
Commission: the exchange keeps a percentage of your net winnings in each market. If you lose in a market, you pay nothing. Each exchange sets its own rate, often depending on the market and your turnover; a few percent is typical.
To compare an exchange price with a bookmaker's odds, build the commission into the price:
effective back odds = 1 + (odds − 1) × (1 − commission)
Exchange odds of 2.10 with 5% commission are effectively 1 + 1.10 × 0.95 = 2.045. So they only beat a bookmaker's 2.05 if the commission is lower than that.
Liquidity: on an exchange you can only bet as much as others are offering on the other side. Major football leagues and Grand Slam matches often have a lot of money in the market; small leagues have little. In a thin market the back and lay prices are far apart, and a larger bet moves the price against you.
In practice it looks like this. In the market "Sturm Graz win", backers are offered, say, €800 at 2.10 and €1,500 at 2.08, while €600 is available to lay at 2.14. If you want to back €2,000 at 2.10, only €800 is matched at that price; the rest goes at 2.08 or worse. The gap between the best back and best lay price (here 2.10 to 2.14) is the spread. In liquid markets it is one or two hundredths, in thin markets much wider.
Who uses exchanges
- Matched betting: free bets and bonuses at a bookmaker are hedged with a lay on the exchange. Without an exchange this only works as back/back between two bookmakers.
- Trading: some people back a price before the match and lay it later at lower odds, much like trading on a stock exchange.
- Price reference: because exchange prices come from many opinions and carry little margin, in liquid markets they are seen as a good estimate of the fair probability. Many tools, ArbVantage included, use them as a reference price without you needing an account there. Value bets based on such reference prices are coming soon in ArbVantage.
Austria
In Austria, sports betting is regulated by the nine federal states. Online bookmakers operate with state licences or with licences from other EU countries such as Malta. We are not aware of a betting exchange holding an Austrian state licence.
- Betfair Exchange: not available to customers in Austria and Germany, according to Betfair's own country FAQ.
- Matchbook: restricts customers from Austria.
Exchanges rarely explain in detail why they leave a country. In general, an exchange needs a suitable licence for each country and enough customers for liquid markets. People betting in Austria therefore use ordinary bookmakers such as Tipico, bet365, bwin, Admiral, Interwetten, tipp3, bet-at-home, William Hill or Bet3000. Whether a provider holds an Austrian state licence is best checked in its imprint and terms. Fees are a separate topic; see the Austrian betting tax.
Slovakia
Under the Slovak Gambling Act (Act No. 30/2019), only operators licensed by the gambling regulator ÚRHH may offer online betting. None of the licensed operators runs a betting exchange. Betfair and Matchbook are on the ÚRHH's official list of prohibited offers (as of 19 October 2026), and their sites are blocked for Slovak users. The licensed online sportsbooks are listed on the ÚRHH website.
Alternatives without an exchange
Without an exchange the principle stays the same; the other side is simply a second bookmaker:
- Back/back instead of back/lay: instead of laying "Sturm win", back "Sturm do not win" (double chance X2) at a second bookmaker. How to work out the equivalent price is in back and lay bets.
- Sure bets: if two bookmakers' prices together come to less than 1 (sum of reciprocals), you can cover every outcome. That is the back/back form without an exchange, explained in sure betting.
- Converting free bets: also works back/back, with a slightly lower return than with an exchange. Details in free bets.
We do not recommend workarounds via agents, VPNs or foreign accounts. They usually break the provider's terms, and your balance can be frozen.
Frequently asked questions
Is there a legal betting exchange in Austria?
We are not aware of any betting exchange that currently accepts customers in Austria (as of October 2026). According to its own FAQ, Betfair Exchange is not available in Austria, and Matchbook restricts Austria.
Is there a betting exchange in Slovakia?
Not a licensed one. Only operators licensed by the ÚRHH may offer online betting in Slovakia, and none of them runs an exchange. Betfair and Matchbook are on the regulator's list of prohibited offers.
How much does exchange commission cost?
The exchange keeps a percentage of your net winnings in each market; there is nothing to pay on losses. Each exchange sets its own rate. With 5 percent commission, exchange odds of 2.10 are effectively odds of 2.045.
Sources
- Betfair: Country closure FAQs
- ÚRHH (Slovakia): Zoznam zakázaných ponúk (list of prohibited offers), as of 19 October 2026
- ÚRHH (Slovakia): licensed online operators, as of 1 January 2026
- Slov-Lex: Act No. 30/2019 Coll. on gambling
- RIS: Vienna Betting Act (an example of a state law)
As of October 2026. Exchanges' country restrictions can change. The 5% commission in the example is an assumption. Not legal advice.
Not betting, legal or tax advice. 18+. Betting involves risk and no profit is guaranteed: odds change, bets get voided and accounts get limited. Only bet money you can afford to lose. Our responsible gambling page lists free help, and the disclaimer applies.