The Betfair Exchange could have major competition on its hands after Matchbook completed the acquisition of Betdaq this week.
Although the fee paid has not been disclosed, it’s thought that the deal will see Matchbook also acquire Racecourse Data Technologies, a software platform that enables on-course bookmakers to hedge positions and balance books automatically within Betdaq.
The consolidated liquidity of the two brands will mean that Matchbook will get closer to their ambition of overtaking Smarkets and becoming the main challenger to the Betfair Exchange in the UK market.
Polymarket to Target UK Market Entry Via a Betting Exchange?
Betting exchanges haven’t always been popular on these shores.
But the Betfair Exchange continues to draw plenty of liquidity for the key sporting and political events… without necessarily challenging the traditional bookmakers for supremacy.
The rise of prediction markets in the US, which offer yes/no bets as opposed to back and lay, has reignited interest in the technology. It’s not beyond the realms of possibility that the likes of Polymarket and Kalshi could sign partner agreements with Matchbook, Smarkets and co if their own efforts to secure a UK licence continue to be thwarted.
In July 2026, prediction markets in the United States took just shy of £40 billion in wagers… confirming that the appetite for peer-to-peer betting is alive and well. Exchanges allow punters to set their own prices in the hope of getting matched; the platform profits by taking a commission on the winning bet.
Triplebet, the owner of Matchbook, has dipped a toe in the water of prediction markets in its partnership with ADI PredictStreet, although regulatory concerns – prediction sites will be classified as gambling in the UK, rather than financial investing – have led to others staying away for now.
Matchbook, historically the third-largest UK betting exchange in terms of liquidity, has purchased the customer pool of Betdaq, the fourth largest, in a bid to topple Smarkets in second place – thus making them more attractive to overseas investors.
It’s unlikely that the Betfair Exchange would entertain offers from cash-rich prediction markets; their owner, Flutter Entertainment, is effectively a gambling industry competitor of Polymarket and Kalshi in the vital North American market.
Exchanging Hands (Again)
This is the latest in a string of buyouts and deals involving Betdaq.
The brand, launched by Irish billionaire Dermot Desmond back in the year 2000, was amongst the earliest competitors in the betting exchange space.
After a successful launch and first decade in business, Desmond accepted an offer from Ladbrokes – believed to be worth £25 million – in 2013. At the time, he also held a shareholding of around 2.5% in Ladbrokes.
They tried their best to eat into the Betfair Exchange’s market superiority, but were unable to make significant inroads – Betfair retained a share of around 90%, while Betdaq’s slice of the pie was nibbled away by the emergence of Smarkets in 2010.
Ladbrokes, now operating under the Entain banner, agreed to sell Betdaq back to Desmond in 2021. The sum paid was kept private, but reports suggest it was considerably lower than the £25 million that exchanged hands eight years earlier.
Matchbook Deepen Their Liquidity Pool
Formed in 2004, Matchbook has bumbled along without making much of a dent in the reign of the Betfair Exchange.
In 2024, they offered their exchange platform technology to easyJet boss Stelios Haji-Ioannou, who launched easyBet as part of his group. That remains the fifth largest exchange platform in the UK, in terms of liquidity.
Commenting on the Betdaq deal, Matchbook’s chief executive Ronan McDonagh said:
“Betdaq and Matchbook grew up proving the same idea – that bettors get a better deal when prices are made by a market rather than a margin.
“Exchanges and prediction markets are bringing peer-to-peer pricing to new audiences around the world, and this acquisition deepens the pool at the heart of everything we build.”
McDonagh reiterated to Betdaq customers that their funds were completely safe and could be withdrawn, although he reminded them that joining forces with Matchbook would result in deeper liquidity pools, tighter spreads and, theoretically, better odds.
Betdaq will remain open in its current form until October 21, Matchbook has revealed, with a further withdrawal window remaining open until November 4.
However, Betdaq customers won’t automatically switch over to Matchbook. They will have to create a new account with the brand instead.
There are no guarantees that will happen, so you wonder if Matchbook’s gamble will ultimately pay off.