An Online Betting Exchange is a digital platform that allows users to bet against each other rather than against a bookmaker. Participants can place bets on various events, such as sports games or political outcomes, and set their own odds. This creates a marketplace where users can either back (bet for) or lay (bet against) an outcome. Unlike traditional betting, where the bookmaker takes a cut, exchanges typically charge a small commission on winnings. This model can lead to better odds for users, as they can compete directly with one another. Popular examples of betting exchanges include Betfair and Smarkets.