Quick answer
A sportsbook is a bookmaker. It sets the odds, takes the other side of your bet and keeps a margin built into every price. KhelKing is a betting exchange, where players bet against each other and KhelKing takes a commission on net winnings in a market. To compare the two, work out your profit after commission and set it against the sportsbook's price.
At a glance
Key takeaways
- A sportsbook's cost is its overround, the amount its implied chances add up to above 100%.
- The KhelKing exchange charges commission on net winnings in a market and nothing on a losing bet.
- On ₹1,000, a 1.97 exchange price at 2% commission nets ₹950.60 against ₹850 at a 1.85 sportsbook price.
- Against a 1.85 sportsbook price, the exchange breaks even at about 1.87 with 2% commission.
- A sportsbook still quotes a price on quiet markets where few exchange players are betting.
How does a sportsbook price a bet?
Sportsbook traders estimate how likely each outcome is and then shave a little off every price. Convert the odds on all outcomes to percentages and they add up to more than 100%. The excess is the overround, and it's how a sportsbook makes money whichever side wins. You never see it as a fee, because it's already in the price you take.
- To turn decimal odds into a percentage, divide 100 by the price. 1.85 is about 54%, 2.50 is 40% and 4.00 is 25%.
- A cricket match priced 1.85 on both teams adds up to about 108%. That 8% is the margin across the market.
- A football match priced 2.40 home, 3.30 draw and 3.10 away adds up to about 104%.
- The lower the total, the closer the prices are to fair. The bookmaker margin guide has a calculator for it.
How does the KhelKing exchange set its prices?
No trader sets the odds on an exchange. Each selection shows a back price in blue, which you get if you bet on it, and a lay price in pink, which you get if you bet against it. Those prices are offers from other players. When a back bet and a lay bet meet at the same price, the exchange matches them. KhelKing doesn't take a side, so it charges a commission on your net winnings in each market and nothing on a losing bet.
| Sportsbook | KhelKing exchange | |
|---|---|---|
| You bet against | The bookmaker | Another player |
| Where the price comes from | The bookmaker's traders | Offers from players, including you |
| What it costs you | The margin built into the odds | Commission on net winnings in a market |
| Is the bet accepted straight away? | Yes, at the price on screen | Once another player matches it |
| How much you can stake | Up to the bookmaker's maximum | Up to the money other players offer at your price |
| Betting against an outcome | Not available | Lay the selection |
| Getting out before the end | Cash-out, where offered | Bet the other side on any open market |
Is the same bet cheaper on the exchange or a sportsbook?
In a busy market the exchange usually works out cheaper, even after commission. Take a ₹1,000 bet on a cricket team priced 1.85 by a sportsbook and 1.97 on the exchange. The 2% commission below only makes the arithmetic clear, so ask support for the rate on your own account.
| Sportsbook at 1.85 | Exchange at 1.97 | |
|---|---|---|
| Stake | ₹1,000 | ₹1,000 |
| Profit if the team wins | ₹850 | ₹970 before commission |
| Commission | None | ₹19.40 |
| Net profit if the team wins | ₹850 | ₹950.60 |
| Loss if the team loses | ₹1,000 | ₹1,000, with no commission |
What exchange price do you need to beat a sportsbook?
Your net exchange profit is (price − 1) × stake × (1 − commission rate). Set that equal to the sportsbook profit and you get a break-even price. Against a sportsbook price of 1.85, about 1.87 matches it at 2% commission and about 1.90 matches it at 5%. Anything above the break-even is better value on the exchange.
How can you tell an exchange screen from a sportsbook screen?
If you've used a sportsbook before, the KhelKing board looks busier at first. A few things give the exchange away.
- Each selection has two prices, back and lay. A sportsbook shows one price per outcome.
- When you lay, the slip shows your liability, stake × (odds − 1), instead of a stake.
- Prices move with the play, and the market suspends for a moment after a wicket or a goal.
- Commission comes off winnings when the market settles, so it never appears on the slip as a fee.
When does each one fit the bet you want?
| What you want to do | Better fit | Why |
|---|---|---|
| A quick bet on a big cricket match | Exchange | Busy markets have tight prices, even after commission |
| Bet that a team won't win | Exchange | Only an exchange lets you lay a selection |
| Lock in a profit as odds move | Exchange | You can trade out on any open market |
| A large stake on a quiet market | Sportsbook | A bookmaker quotes a price even when few players are betting |
| Your first few bets | Either | Back bets work the same way, so start small and skip laying |
What do people misunderstand about exchange costs?
- Thinking the exchange is free because the slip shows no fee. Commission comes off winnings at settlement.
- Comparing a sportsbook price with the exchange back price without allowing for commission.
- Expecting a big stake to go through at the top price when only a small amount is on offer.
- Laying a heavy favourite without reading the liability, which can be several times the stake.
- Assuming a sportsbook margin doesn't matter on small bets. It costs the same percentage on every bet, so it adds up over a season.
Still wondering?
Frequently asked questions
01Is KhelKing an exchange or a sportsbook?
An exchange. Every market has back and lay prices from other players, and KhelKing takes a commission on net winnings in a market.
02What is the main difference between an exchange and a sportsbook?
On a sportsbook you bet against the bookmaker at its price. On an exchange you bet against other players, and the exchange earns commission instead of a margin in the odds.
03Are exchange odds better than sportsbook odds?
Often, in busy markets such as big cricket and football matches. Work out your profit after commission before you compare.
04When does the exchange take commission?
Only from net winnings in a market, so a losing bet pays none.
05How do I work out the break-even exchange price?
Use (price − 1) × (1 − commission) = sportsbook price − 1. Against 1.85 at 2% commission, the answer is about 1.87.
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Written by
KhelKing Editorial Desk
Guides and explainers
The editorial desk edits every KhelKing guide for accuracy and plain English, and writes the general explainers on how betting exchanges work.
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