By Nathan Lee, TLE Correspondent
Next-generation betting exchange Smarkets has reached the one billion pound traded milestone.
A strong response to the Cheltenham Festival and record-breaking interest in the Grand National built on momentum from 2014 pushing the company over the £1 billion mark. Cheltenham saw trading volume grow by 320 per cent year-on-year, whereas the response to the Grand National smashed the company’s one-day record for GBP volume traded, recording a revenue increase of 359 per cent.
Revenue has snowballed in the last year and after celebrating trading £500 million in March 2014, it has seen this total double, less than a year later. Smarkets’ novel approach to betting has proved successful with punters, applying financial trading principles to the online sports world. The company has simplified the exchange experience using the best technology, enabling the company to offer an order of magnitude better odds.
The selling patterns during the Grand National were a great example of the value and accuracy of these predictions. Ahead of the race there was heavy backing for hot favourite Shutthefrontdoor. But in an incredible fluctuation, this drastically shifted and the odds for the horse lost around half their value by the time the race started, demonstrating that the wisdom of the crowds correctly indicated that Tony McCoy would not win the biggest race of the horse racing calendar.
Jason Trost, Founder and CEO of Smarkets, says: “I believe that our growth has proven that there is room for a challenger brand and more in the market. Combining transparency, together with integrity and excellent odds, is a truly compelling proposition for any customer. During our performance at Cheltenham and the Grand National, we’ve seen an 80% increase in new registrations, and the word is getting out that we’re a sure bet for the market, something that thousands of other loyal customers have known about for some time now.”
Smarkets offers the best odds with the lowest commission. Traditional high street bookmakers can charge up to 16 per cent in hidden fees and online services still leave room for improvement with up to ten per cent fees. Smarkets’ margins are an industry low of two per cent. Compounded with more investment in market liquidity and a stable reliable service, Smarkets is set to revolutionise the market as we know it.
