If you’re a regular of the various local betting shops and online bookies, then chances are that you have noticed that bookmakers’ odds are priced less than the ones available at betting exchanges.

Curious about the reason, I raised the question to Mike, a friend at Bet Bright, and he was so kind to give me an extensive explanation.

– While you might find the whole situation as an attempt to lower user profit margins, you might be surprised to learn that this is due to the fact that bookmakers also feature backing for the outcome. Essentially, each time you place a wager with the operator, you earn the possibility of an arbitrage transaction at the same time.