I've just read a very interesting article about a UK company that helps big stakes players bet on football.
Basically the article tells us about a company in the UK which was established by a guy from Hong Kong to help UK punters bet into the huge Asian bookmakers.
The piece is a few months old now, having been published on the Bloomberg site in June and was brought to my attention by a fellow member of the Profit Maximiser service.
I don't know if this company is effected by the recent changes in UK law which has seen the Asian books close all UK accounts, but it's an interesting insight into the world of the big player anyway.
Frank Chan who founded the company basically discovered arbitrage betting and turned it into a service and then went large.
Here's a quote from the article about the scale of Asian bookmaking…
To put that in perspective, the Asian markets handle more money in several days for soccer alone than does the entire sports-book industry of Nevada in a year for all the sports in which it deals.
And the realisation that inspired Chan to start his company, Samvo Entertainment Ltd.
The odds on English Premier League soccer matches differed considerably from bookmaker to bookmaker. Like the spread between the prices of a dual-listed company’s shares trading in London and New York, the discrepancies represented market inefficiencies and, hence, arbitrage opportunities.
What started as some personal arbitaging grew into a service for taking bets from high rollers, people who want to bet in the hundreds of thousands, Samvo make their money from the arbitrage.
EG they take the bet at the UK price and lay it off at the Asian price, the customer gets to stake way more than they could with a UK bookmaker and Samvo get the profit from the difference in prices.
The article also makes some interesting references to the size of Ladbrokes, William Hill and the Betfair markets compared to what is available with the Asian bookmakers.
Well worth a 5 minute read…
4.50 Newcastle Moscato – win bet – 11/10 Paddy Power