A BASINGSTOKE businessman is hoping to take a cut of the multi-billion pound betting cake with the launch of a new website this week.

Ian Davies, 40, of Packenham Road, has set up his own internet betting exchange service with the aim of giving punters better value.

Mr Davies, a registered bookmaker, has been involved in horse racing for more than 20 years and has set up BackAndLay.com after working with online betting pioneers Betfair.

Now he hopes to take on the big boys by offering cheaper bets.

He said: "Betting exchange turnover is now more than £100m a week and that's gone up from £1m two years ago.

"I think the competition has got a bit clumsy. Betfair has around 290 staff and charges up to five per cent commission.

"We have really pared things down. We will have fewer than 20 people working for us and will charge just one per cent."

Betting exchanges work by bringing together two sets of punters, one who will lay odds on an event and the other who will place a bet. Mr Davies will make his money by charging the winner a small percentage. Because gamblers can choose which odds to take, they will generally get a better return than from high street shops.

He said: "The thing about betting exchanges is that everyone gets better value. If you are losing, then you lose less, and if you are winning, you end up winning more."

Mr Davies and computer programmer Glyn Wintle, of Fleet, have been working on the site for six months - and it finally went live on Wednesday, at www.backandlay.com

Although there is the potential to tap into a global market, the pair are also keen to give something extra to locals using the site.

Mr Davies said: "I live in Basingstoke, so when it's up and running I will be trying to do some local events. I will start making markets on Town, for fans to bet on.

"If there's local interest, then I will create the market."

Mr Davies said that security was a major factor when setting up.

Two bank accounts have been set up to safeguard users' money and ensure all bets are paid. As well as the usual account for the business, a separate, ring-fenced account has been created for punters' cash.

The second account can not be touched by the company, even if it were to go bust.