New exchange targets gamblers

GAMBLERS in the Square Mile will be targeted this week with the launch of the first financial betting exchange.

Binexx, owned by spread betting firm City Index, aims to cash in on the growing popularity of betting exchanges, which bring individuals together on the internet to bet against each other.

Exchanges such as market leader Betfair and smaller rival Betdaq have grown rapidly.

The format has become the fastest expanding sector of the gambling market and the exchanges provide a platform on the internet to enable gamblers not only to take a bet, but also offer their own odds. The practice is called laying.

Exchanges make their profit by taking a cut of the winning bet, but gamblers' winnings are tax-free. They have run into opposition from established bookmakers who claim everyone laying odds on the site should pay tax on their profits in the same way bookmakers do.