Definition
Betting Exchange is a platform that allows gamblers to bet against each other rather than against a bookmaker. Unlike a traditional sportsbook, which sets the odds and takes the risk, the Exchange acts only as a middleman (the Marketplace), providing the technology for users to trade bets. The Exchange does not have a House Edge or Vigorish built into the odds; instead, it charges a small commission (usually 2% to 5%) on the net winnings of a market.