With no edges on here.. and the high charges..

For most people gambling is a bit of fun and a harmless hobby that costs money like most hobbies do. And for them the charges are low and the odds good so they lose money slower than they would otherwise. But the great thing about betfair is that opportunities exist to make a profit. There are plenty of edges on here. The odds are wrong most of the time in horse racing for example. There are opportunities for trading sports events and people who study form. Neither of which require technology.

And BF provides them a new, innovative type of platform to exploit these edges.
But it comes at a cost, which cost is not fixed in stone but is evolving as the various nuances of the exchange concept reveal themselves.
BF is in this for profit, the good punters are in this for profit. Neither can make a profit wihout the other.
The market will settle all the correct pricing over the course of time.
BF can revise prices in any direction, the good punters can take their trade elsewhere at any time without any exit penalty.
What is the problem with all that ?

The problem is that most PC payers cannot go elsewhere. Take poker for example. No PC there. Why? There are other places to go. Betfair is exploiting its effective monopoly.

Come Christmas there will be one person left banging the Betfair drum, i give you the bore of all time, Fine as frog hair, only mug left, turn off the lights!

So now they can't go anywhere ?
What's with all this " let's go en masse over to the purple site  ?"
BF fully appreciates that without customers, being the whole range of such animals, from good to bad, it will not have a successful or viable exchange.
BF is saying that at the moment there are too many customers taking too much out of the exchange in return for what they are effectively being charged.
They are trying to redrrss this situation, without going to the other extreme of having no customers earning them no money.
It is how a free market operates. Supply and demand I think it is called.
The purest exchange concept around I believe.

You know onebungalow, I will freely admit one thing and that is that whingers bring the worst out in me.
Maybe that's why I got out of the UK many years ago and made some real money.
What have you done so far with your life ?

It is no good pros leaving betfair. In order for other sites to be viable recreational punters need to leave too. And thet have no reason to. Also, the worst thing in the world for everyone would be to split liquidity. So they might get away with it. However, turning 480 loyal customers who you need to keep your business running into 480 people who crack open a bottle of champagne when your share price drops and who hope you go to the wall and a new exchange emerges......well......that's a gamble. And if they think they can seed their own markets thay are in for a shock.

It's a balancing act I agree pumpkin.
But if they do nothing and let serious monies apparently keep draining out of the exchange without adequate recompense, then won't that most definitely destroy the exchange ?.
Perhaps that's not even an if ?

But monies are draining out of the exchange at the exactly the same rate. Just shareholders will get dividends at the expense of the people who supply the liquidity.

Do you know that as a fact pumpkin ?
Or is it just a " feeling " you and others have ?

Well, losing punters pay the same commission. People pay the premium charge. It's not being rebated to losing clients so they are losing at the same rate. I don't know it will be paid in dividends but losers are still losing at the same rate. They told us last time that the PC payments would be for advertising to attract new customers, yet expenditure figues don't bear this out. Basically they keep the charge as profit it seems.

Perhaps there isn't a bottomless pit of losers to keep new money rolling into the exchange? If I was BF I would be trying to hold on to the losers for as long as possible. Disincentivising winners could achieve that, but it's a fine line they tread.

If the 480 left, betfair would collapse. Winners lay, mugs back. Every single strategy I've ever come up with that works makes almost all it's profit laying and rarely works backing. If you lose winners betfair will eventually fail because most recreational punters don't lay.

Have to disagree with you there Pumkin.

If the 480 left they would soon be replaced IMO. No one is indispensable, and the opportunities they leave would soon be taken up IMO.

I'm mostly a backer and successful, so disagree with you there too.

I don't know about most recreational punters being backers, but even if they are layers will come forth to take their money I'm sure.

Monopoly charges more to the customers that needs its services the most.

Shock! Horror! - When has this ever happened before?

British Gas - Prices up 18%! - Why? - Because they can! Everybody huffs and puffs for a while...and pays up

This conflict all boils down to one thing.

The 500 think they are crucial to Betfair's future...

The Board think otherwise.

That's their call.

Ultimately the market decides.

If it all goes wrong...the Board and shareholders pay the price!

For the average punting Joe - 2 competitive exchanges have to offer up more choice and value.

with no edge, regardless of the PC, it's like betting at a casino.

you need to have an edge after commission to make money.

the PC just reduces the growth rate.