Member Article

Smarkets reaches £1billion milestone in just one year

Leading online betting exchange Smarkets, has reached the one billion pound traded milestone. An epic response to the Cheltenham Festival and record-breaking interest in the Grand National continues the momentum of 2014 into the conclusion of the football calendar. Cheltenham saw trading volume grow by 320% year-on-year, whereas the response to the Grand National smashed the company’s one-day record for GBP volume traded, recording a revenue increase of 359%! Overall, both events saw a tremendous demand this year.

The next-generation betting exchange, Smarkets is disrupting the way that odds are set and bets are placed. Smarkets has simplified the exchange experience using the best technology, enabling the company to offer an order of magnitude better odds. The firm’s commission structure of a flat 2% of net profits is also drastically lower than other online competitors.

Smarkets’ revenue has snowballed in the last year and after celebrating trading £500 million in March 2014, it has seen this total double, less than a year later. A testament to the service and its team, Smarkets has proved the potential of applying financial trading principles to the online sports world. Their goal was to make a difference by developing an online platform focused on honest, transparent, user-centred trading.

Smarkets offers trading opportunities on all major sports and niche markets such as politics and current affairs. Its markets have been used to predict the outcomes of major events, including elections, awards ceremonies and sporting fixtures, as prices are considered a valuable indication of the collated knowledge of all traders in the market. If a price decreases, the event outcome is considered to be more likely to occur. Smarkets regards this as the “wisdom of crowds.”

The selling patterns during the Grand National were a great example of the value and accuracy of these predictions. Ahead of the race there was heavy backing for hot favourite Shutthefrontdoor. But in an incredible fluctuation, this drastically shifted and the odds for the horse lost around half their value by the time the race started. The wisdom of the crowds indicated that Tony McCoy wouldn’t be the winner and they were right!

Jason Trost, Founder and CEO of Smarkets, says: “I believe that our growth has proven that there is room for a challenger brand and more in the market. Combining transparency, together with integrity and excellent odds, is a truly compelling proposition for any customer. During our performance at Cheltenham and the Grand National, we’ve seen an 80% increase in new registrations, and the word is getting out that we’re a sure bet for the market, something that thousands of other loyal customers have known about for some time now.”

Smarkets offers the best odds with the lowest commission. Traditional high street bookmakers can charge up to 16% in hidden fees and online services still leave room for improvement with up to 10% fees. Smarkets’ margins are an industry low of 2%. Compounded with more investment in market liquidity and a stable reliable service, Smarkets is set to revolutionise the market as we know it.

This was posted in Bdaily's Members' News section by Katherine Adams .