top of page

Free Market Betting

Updated: Apr 24

Quick Read


Analogy… Robinhood is to the stock market as BettorEdge is to sports betting

  • Robinhood’s no-fee structure became industry standard for stock brokers

  • How come sportsbooks are still getting away with charging vig?

BettorEdge removes this fee by creating a free market where users can buy and sell betting positions (orders) & compete directly with each other

  • An order is an agreement between two bettors

  • The terms of this agreement include the proposition, odds, quantity, and payout

  • The winner is determined by the outcome of the proposition

  • Whatever is gained by one side is lost by the other (zero sum)

Below I'll go over the mechanics of this free market and show how this opens the door to being a profitable bettor

  • DYOR, never bet anything you can’t afford to lose


 

Example


An order consists of two parties...the buyer & the seller

  • the seller creates the order & the buyer fulfills the order

Seller... "I want the Philadelphia Eagles to win @ -170 for $10"

  • Proposition... Eagles Moneyline

  • Odds... -170

  • Quantity... $10.00

  • Payout... $15.88 = $5.88 (profit) + $10.00 (returned)

This is now an open order that requires a buyer of the opposite outcome...


Scenario 1

Buyer... "I want the Detroit Lions to win, I'll take the best available odds for the max quantity"

  • Proposition... Lions Moneyline

  • Odds... +170

  • Quantity... $5.88

  • Payout... $15.88 = $10.00 (profit) + $5.88 (returned)

Payout = Seller quantity + Buyer(s) quantity

  • $15.88 = $10.00 + $5.88

  • This is zero sum betting since one party wins what is lost by the other side

A seller's order can be fulfilled by multiple buyers

  • Buyers can partially fulfill an order until it's completely fulfilled ($5.88 is the max quantity available for Detroit ML currently)

  • Any remaining, unfulfilled part of an order is returned back to the seller at the start of the game

Sellers can cancel their open orders at anytime

  • Any partial orders made prior to being cancelled will be respected

  • Remaining funds are returned back to the seller


Scenario 2

Buyer... "I want the Detroit Lions to win, but I want better odds than +170...

  • The buyer can choose to become a seller

... I want the Detroit Lions to win @ +190 for $10"

  • Proposition... Lions Moneyline

  • Odds... +190

  • Quantity... $10.00

  • Payout... $29.00 = $19.00 (profit) + $10.00 (returned)

This is now an open order that requires a buyer of the opposite outcome...

  • Proposition... Eagles Moneyline

  • Odds... -190

  • Quantity... $19.00

  • Payout... $29.00 = $10.00 (profit) + $19.00 (returned)

Though sellers can set their own odds, its the buyers who fulfill the orders

  • Buyers have the option to not fulfill an order if the odds are unfair, resulting in a seller's order being returned back to them at the start of the game

Orders are fulfilled based on who's offering the best available odds

  • A seller can take reduced odds to undercut other sellers and be fulfilled earlier

  • Another seller wants Lions to win @ +185

  • This will be fulfilled first since it now gives buyers Eagles to win @ -185

 

Profit = Research and Timing

Continuing the stock market analogy… While researching and studying stocks is an important part of the buying process, so is the purchase price

  • BettorEdge opens the door to a new way of sports betting where price discovery and odds are determined by bettors rather than the sportsbook

  • Not having to pay a 5% vig on every bet means your understanding of a game actually matters and profitability is truly possible


Thanks for reading!



bottom of page