On a betting exchange, you are betting against other gamblers. Every customer on a betting exchange can decide for themselves whether to make or lay bets. Former champion jockey Kieren Fallon, two other riders and three other men have been acquitted of conspiracy to defraud. So what is Betfair?. A betting exchange differs from a bookmaker in that it brings individuals together that want to place bets (known as backing) and those that. But Betfair allows customers to bet against odds set by other gamblers. This simple example explains free casino machine a betting exchange works. This differentiates them from traditional betting shops and bookmakers as the betting exchange allows the user to act as the bookie by setting the odds for an event or the customer who bets using the odds set by the other user. From Wikipedia, the free encyclopedia. Delicious Digg reddit Facebook StumbleUpon What are these? Crucially, the prices at a betting exchange are determined by a free market, rather than being set by a bookmaker.