This page outlines the Racing Commission's definition of selected gambling terms.
A betting exchange is an online platform where customers bet against one another, including setting the odds and the size of the bet.
A betting exchange operates in a similar way to a bookmaker by accepting bets from customers, however traditional bookmakers set the odds and may also reduce the bet size.
A betting exchange operator will only accept a bet where it is able to offset the risk of that bet by matching it against requests for bets from other customers.
Last updated: 21 September 2016