You’ve heard the term market before (maybe in reference to crypto markets or the stock market) but what does that mean when it comes to Sports Betting? A market, or marketplace, is merely a place that connects users over a common interest or price.
You see there are a lot of similarities between the stock market and sports betting. Stock markets connect consumers directly based on buy and sell activity to create a market price. That market price is what’s showcased for each stock on your favorite app. Similar to sports betting, the price to determine whether a team will win or not is determined based on buy and sell activity in the market…Let’s dive into the benefits and drawbacks of a marketplace.
Benefits of an Marketplace:
Best Price (odds) - The market connects you to other users directly and cuts out the middle man. Accordingly, there’s ample opportunity to provide the best price possible in the market.
A “Bettor” Incentive - A marketplace connects you directly with other users. Accordingly, it doesn’t benefit from your loss or lose out from your gain.
Won’t Cap Winners - As a marketplace, it's best to have the most efficient markets, it celebrates the wins of its most prized users without capping their future activity as a risk management strategy.
User Flexibility - As a market naturally moves, limit orders allow for users to lock-in a desired price they’re willing to pay. This provides users the opportunity and flexibility to set their own price in the market.
Sell Strategy - What if you don’t want to wait til the end of the game to lock in earnings? What if you could sell at the current market price? With a marketplace, you’re always able to sell to other users in the market at a current desired price.
Transparency - With a marketplace, you'll be able to see transparent data about market volume, price movements, etc. to make better decisions.
Reality of a Marketplace:
High Match Deposits - With a marketplace, the focus is on the best experience of the fan. Accordingly, you won’t see flashy sign-up bonuses with high rollover requirements. Not getting those high dollars can be a drawback, but we see this as a benefit as each promotional dollar you get is yours to use, no 20x rollover requirements (to only be used on certain games)...
Drawbacks of a Marketplace:
Liquidity - Marketplaces work best when there’s a high number of users interested in an event. Accordingly, leverage the following strategies to get the best experience:
- Tell your friends, family, or foes to join in on one of the fastest growing communities!
- Place orders at competitive prices.
- Consider the number of people interested in placing orders on the game. If it’s a smaller market game, give ample time to for other people to see your market activity.
- Give ample time for your order to be seen in the marketplace.
Keep these tips in mind and we’re constantly making enhancements to help improve your experience.