What’s the Real Difference?
While bookmakers and exchanges both offer betting markets, they operate on fundamentally different models. In Australia, Betfair dominates the exchange space, allowing punters to bet against each other rather than against a bookie.
| Feature | Bookmakers | Exchanges (e.g. Betfair) |
|---|---|---|
| Odds | Set by the bookie | Determined by market supply/demand |
| Lay Betting | ❌ No | ✅ Yes |
| Commission | Built into prices | Separate (typically 2–5%) |
| Payout Timing | Immediate on win | After market settles |
| Sharpened Markets | Sometimes | Often very efficient on big meets |
| Great for Overlays | Less frequent | ✅ Common on low liquidity races |
Strategic Insight
- Exchanges are ideal for overlay hunters because prices fluctuate with real demand, not just algorithmic or bookmaker estimations.
- In provincial races, where liquidity is low, smart punters can catch market inefficiencies and post back bets at inflated odds.
Example
At Grafton midweek:
- Market odds for My Michelle via Sportsbet: $5.00
- Betfair price: $6.20
- Your rated odds: $4.00
That’s a clear overlay on Betfair — and because you’re betting against other punters, you’re more likely to find mispricing.