Are Sports Betting Exchanges the Next Big Thing? Explaining Novig & the Difference vs. Traditional Sportsbooks

What is a Sports Betting Exchange?

Sports betting exchanges are different from sportsbooks in that you are betting against other people on the opposite side of your bet instead of the house. Mainly referred to as “peer-to-peer” betting, this model allows companies to create a platform that takes far less juice (the fee sportsbooks charge via odds to make money) than traditional sportsbooks.

This approach eliminates the need for a middleman, which means better odds and higher potential winnings. Users can agree on odds for a specific game, offering a level of flexibility and control not found in traditional sportsbooks.

Another advantage of sports betting exchanges is the increased market variety they offer. Traditional bookmakers have limitations on the types of bets they can offer, as they need to manage risk and set odds accordingly. However, on an exchange, users can create and request their own bets, opening up a world of possibilities.

This increased market variety allows users to explore unique betting opportunities, like trading in and out of positions throughout a live game, acting as a market maker by offering odds on both sides of a market, or altering their orders’ time-in-force parameters. The flexibility and freedom of sports betting exchanges provide a more engaging and personalized experience for bettors.

For platforms such as Novig, which is approaching its official launch, being the medium to peer-to-peer betting doesn’t have a risk like the sportsbooks take on.

For example, if everyone goes to Caesars or another traditional sportsbook and bets on the Dallas Cowboys, Caesars is exposed. If the Cowboys win, they have to pay out all the users with their money.

On the other hand, at an exchange, every bet needs an equal and opposite bet from a different user on the other side. From the exchange’s perspective, they don’t care what the result of the bet is. No matter what, one side will win and one will lose…they don’t have to worry about paying out a majority of the public on one side.

Because of this, they can afford to take less juice (why sportsbooks charge -110 on each side of a bet when fair odds are +100 since it has a 50% chance of winning) and provide the users with a better return on investment.

Sports Betting Exchange Example: Novig

As mentioned, Novig is a great example of this. The platform is peer-to-peer, and a commission-free sports betting exchange that guarantees better lines because you can bet against friends or what the market has determined the fair price to be.

You can even set your own line you’d be willing to bet at, and if someone on the other end accepts or the market gets to that price it will fill your bet.

This benefits the bettor with each bet placed and makes the user experience more efficient, fair, and profitable. As an exchange, Novig differs from the traditional revenue model of sportsbooks and uses innovative technology to create the best user experience possible.

On Novig, all bets are matched between users, eliminating any concerns of biased odds or unfair practices. The platform acts as an intermediary, ensuring that all transactions are conducted fairly and that bets are settled accurately.

Novig plans to launch this fall, starting in Colorado. You can sign up for early access here and be notified when it’s available in your state.

They will also be offering a deposit match up to $250, paid in bonus funds. For full terms and conditions, visit the link above.