How the Platform Makes Money
A Simple Guide to Hannibal's Revenue Streams
Version 1.0 | January 2026
This document explains all the ways the platform generates revenue in simple, everyday language with real examples.
Overview: The Five Revenue Streams
The platform makes money through five main channels:
| Revenue Stream | What It Means | When It Applies |
|---|---|---|
| 1. Margin on Odds | We show slightly worse odds than the exchange | Sportsbook product only |
| 2. Commission | We take a cut of user's net winnings per market | Both products |
| 3. Slippage Capture | We keep the benefit when odds improve at placement | Both products |
| 4. Netting Benefit | We charge users individually but pay exchange on net | Both products |
| 5. Agent Booking System | Agents take a share of bet outcomes | Agent product |
Important Note on Exchange Product: For the Exchange product, we show users the exact same odds as Betfair. There is zero margin on odds. Users see what the exchange sees. Revenue comes only from commission, slippage, and netting.
1. Margin on Odds (Sportsbook Product Only)
What is it? We take the odds from Betfair and make them slightly worse before showing them to users. The difference is our profit.
Simple Example:
Imagine a cricket match where India is playing Australia.
Betfair says: India to win pays 2.00 (bet ₹100, get ₹200 back)
We show user: India to win pays 1.96 (bet ₹100, get ₹196 back)
What happens when the user wins:
User bet ₹100 at 1.96 odds
India wins!
We collect from Betfair: ₹200 (at 2.00 odds)
We pay the user: ₹196 (at 1.96 odds)
Our profit: ₹200 - ₹196 = ₹4
Why does this work? The user doesn't know the Betfair odds. They see 1.96 and think it's a fair price. We pocket the difference.
How much margin? The margin is configurable per sport. Default is 2%. This means:
- If true odds are 2.00, we show approximately 1.96
- If true odds are 3.00, we show approximately 2.88
- If true odds are 1.50, we show approximately 1.47
Exchange Product: For the exchange product, margin is zero. Users see the exact Betfair odds. If Betfair shows 2.00, we show 2.00.
2. Commission on Net Winnings
What is it? When a user makes a net profit on a market (after all their bets on that match are settled), we take a percentage as commission.
Simple Example:
Ravi places two bets on the same cricket match:
Bet 1: ₹1,000 on India to win at 2.00 → India wins → Ravi gets ₹2,000 (profit ₹1,000)
Bet 2: ₹500 on Over 300 runs at 1.80 → Under 300 happens → Ravi loses ₹500
Ravi's net profit on this match: ₹1,000 - ₹500 = ₹500
Commission (2%): ₹500 × 2% = ₹10
Ravi's final profit: ₹500 - ₹10 = ₹490
Key Points:
- Commission is only charged when user has NET profit on a market
- If user loses overall on a market, commission is ₹0
- Commission rate is configurable (default 2%)
- This is the same model Betfair uses
Another Example (User Loses Overall):
Bet 1: ₹1,000 on India → India loses → Ravi loses ₹1,000
Bet 2: ₹500 on Australia → Australia wins → Ravi gets ₹900 (profit ₹400)
Ravi's net on this match: -₹1,000 + ₹400 = -₹600 (net loss)
Commission: ₹0 (no commission on losses)
3. Slippage Capture
What is it? Sometimes the odds improve between when we show them to the user and when we actually place the bet on Betfair. We keep this bonus.
Simple Example:
Step 1: User sees odds of 1.96 for India to win
Step 2: User clicks "Place Bet" for ₹1,000
Step 3: We go to Betfair to place the bet
Step 4: Betfair odds have improved to 2.05!
Step 5: We place at 2.05 but user is locked in at 1.96
What happens when user wins:
We collect from Betfair: ₹1,000 × 2.05 = ₹2,050
We pay the user: ₹1,000 × 1.96 = ₹1,960
Slippage profit: ₹2,050 - ₹1,960 = ₹90
This is called "positive slippage" - the odds moved in our favor.
What about negative slippage? Sometimes odds get worse. In that case:
- The user's locked price (1.96) becomes invalid
- We place at worse odds on Betfair (say 1.90)
- The user gets the worse odds (1.90), not their original price
The platform passes negative slippage to the user. This protects the platform from loss when odds move against us.
Simple Example of Negative Slippage:
User clicks bet at 1.96 odds
By the time we place on Betfair, odds have dropped to 1.90
User's bet is placed at 1.90 (not 1.96)
User's potential win is now lower, but they are protected from the bet being rejected
4. Netting Benefit (Commission Arbitrage)
What is it? We charge each user commission on their individual winnings. But Betfair only charges us commission on our account's NET position. When users' bets cancel each other out, we collect commission but pay nothing to Betfair.
Simple Example:
User A bets ₹10,000 on India to win
User B bets ₹10,000 on Australia to win
India wins!
User A wins ₹10,000 profit
User B loses ₹10,000
We charge User A: 2% of ₹10,000 = ₹200 commission
We charge User B: ₹0 (no commission on losses)
Our account at Betfair:
- User A's win: +₹10,000
- User B's loss: -₹10,000
- Net position: ₹0
Betfair charges us: 5% of ₹0 = ₹0 (Betfair's rate is 5%)
Our profit: ₹200 collected - ₹0 paid = ₹200
Why does this work? Betfair sees our account as one big pool. When our users bet against each other, the bets cancel out. We pay no commission to Betfair, but we still collect from each winning user.
Real-World Impact: With thousands of users betting on both sides of matches, a significant portion of bets net out. This "netting benefit" can be substantial.
5. The Agent Booking System (Point Ratio Model)
What is it? Agents can choose to "book" a percentage of their users' bets. This means they take a share of every bet's outcome - both wins AND losses.
The Key Concept: The odds stay exactly the same for users. The agent doesn't change the odds. Instead, the agent takes a percentage of the profit or loss from each bet.
Simple Example:
Agent has "1.25 points" which means they book 20% of the action
User bets ₹1,000 on India at 2.00 odds
Agent books: 20% = ₹200 of this bet
Platform books: 80% = ₹800 of this bet
Scenario 1: User LOSES
User loses ₹1,000
Agent keeps: ₹1,000 × 20% = ₹200
Platform keeps: ₹1,000 × 80% = ₹800
Scenario 2: User WINS
User wins ₹1,000 (at 2.00 odds, profit = ₹1,000)
Agent pays: ₹1,000 × 20% = ₹200
Platform pays: ₹1,000 × 80% = ₹800
The Point Ratio Mathematics:
The "points" determine what percentage the agent books:
| Points | Formula | Agent Books |
|---|---|---|
| 1.0 | (1.0-1)/1.0 = 0% | 0% (no risk, commission only) |
| 1.1 | (1.1-1)/1.1 = 9% | ~9% |
| 1.2 | (1.2-1)/1.2 = 17% | ~17% |
| 1.25 | (1.25-1)/1.25 = 20% | 20% |
| 1.5 | (1.5-1)/1.5 = 33% | ~33% |
| 2.0 | (2.0-1)/2.0 = 50% | 50% |
Formula:
Book Percentage = (Points - 1) / Points
Or the reverse:
Points = 1 / (1 - Book Percentage)
Example: For 20% booking → Points = 1 / (1 - 0.20) = 1 / 0.80 = 1.25
Why Would an Agent Book Action?
| Model | Risk | Reward |
|---|---|---|
| No booking (1.0 points) | Zero risk | Small commission share only |
| 20% booking (1.25 points) | Medium risk | 20% of all user losses |
| 50% booking (2.0 points) | High risk | 50% of all user losses |
Example Over a Week:
Agent with 1.25 points (20% booking) has 10 users who bet a total of ₹100,000
Total user bets: ₹100,000
Users who lost: ₹60,000
Users who won: ₹45,000
Net house profit: ₹15,000
Agent's share (20%):
├── Share of losses: ₹60,000 × 20% = ₹12,000 (agent receives)
├── Share of payouts: ₹45,000 × 20% = ₹9,000 (agent pays)
└── Agent's net profit: ₹12,000 - ₹9,000 = ₹3,000
Platform's share (80%):
├── Share of losses: ₹60,000 × 80% = ₹48,000
├── Share of payouts: ₹45,000 × 80% = ₹36,000
└── Platform's net profit: ₹48,000 - ₹36,000 = ₹12,000
Key Characteristics of the Booking System:
- Odds Never Change - Users always see exchange odds (or margined odds for sportsbook)
- Risk Sharing - Agent shares in both profits AND losses
- Aligned Incentives - Agent wants users to lose (like a bookmaker)
- Scalable - More users = more potential profit (or loss)
- Settlement Based - Calculated at weekly settlement, not per bet
6. Complete Example: Following One Bet Through the System
Let's follow one bet through the entire system using the Exchange product (0% margin - user sees exact Betfair odds):
Setup:
- Product: Exchange (0% margin - exact Betfair odds shown)
- User: Ravi (under Agent Sharma)
- Agent Sharma: 1.25 points (books 20%), 25% commission share
- Bet: ₹10,000 on India to win
Step 1: Odds Display
Betfair true odds: 2.00
Margin: 0% (Exchange product)
Ravi sees: 2.00 (exact same as Betfair)
Step 2: Bet Placement
Ravi bets ₹10,000 at 2.00
We place on Betfair at 2.00 (no slippage in this example)
Step 3: India Wins! Settlement
Betfair pays us: ₹10,000 × 2.00 = ₹20,000
We pay Ravi: ₹10,000 × 2.00 = ₹20,000
Ravi's profit: ₹10,000
Platform captures from odds:
├── Margin profit: ₹0 (Exchange product has 0% margin)
├── Slippage profit: ₹0 (no slippage in this example)
└── Total odds profit: ₹0
Step 4: Commission
Ravi's net profit on market: ₹10,000
Commission (2%): ₹10,000 × 2% = ₹200
Ravi's final profit: ₹10,000 - ₹200 = ₹9,800
Step 5: Agent Booking (20%)
Ravi won ₹9,800 (after commission)
Agent Sharma pays: ₹9,800 × 20% = ₹1,960
Platform pays: ₹9,800 × 80% = ₹7,840
Step 6: Agent Profit Share
Commission collected: ₹200
Agent's commission share (25%): ₹200 × 25% = ₹50
Final Summary for This Bet:
| Party | Amount | Notes |
|---|---|---|
| Ravi (User) | +₹9,800 | Won bet minus commission |
| Agent Sharma | -₹1,910 | Paid ₹1,960 (booking) + Received ₹50 (commission share) |
| Platform | -₹7,890 | Paid ₹7,840 (booking) + Collected ₹200 (commission) - Paid ₹50 (agent share) |
Note: This single bet was a loss for both platform and agent because the user won. Over many bets, the commission + netting benefit ensures profitability. With the Exchange product, there is no margin on odds - users see the exact same odds as Betfair.
7. Summary: Revenue by Product Type
Sportsbook Product:
| Revenue Stream | Active? | Typical Rate |
|---|---|---|
| Margin on Odds | ✅ Yes | 2% |
| Commission | ✅ Yes | 2% on net profit |
| Slippage | ✅ Yes | Variable |
| Netting Benefit | ✅ Yes | Variable |
| Agent Booking | ✅ Yes | 0-50% configurable |
Exchange Product:
| Revenue Stream | Active? | Typical Rate |
|---|---|---|
| Margin on Odds | ❌ No (0%) | Users see exact exchange odds |
| Commission | ✅ Yes | 2% on net profit |
| Slippage | ✅ Yes | Variable |
| Netting Benefit | ✅ Yes | Variable |
| Agent Booking | ✅ Yes | 0-50% configurable |
End of Document