General Betting
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Today Betfair introduce their first ever charge on turnover. So far it is only on racing markets in the bigger Australian states. The charge is 1.2% of turnover on all back bets if some straight forward criteria are met. This charge is on top of basic commission, commission adjusted for different market base rates, transaction charges, data request charges, premium charges and super premium charges.
This charge effectively eliminates the possibility of trading on these markets. The ability to back and lay on the exchange is one of its key USPs. Imagine if this charge is imposed on inplay soccer or tennis or a five day test match in the future? Where will it leave betting on those sports on Betfair?
This charge effectively eliminates the possibility of trading on these markets. The ability to back and lay on the exchange is one of its key USPs. Imagine if this charge is imposed on inplay soccer or tennis or a five day test match in the future? Where will it leave betting on those sports on Betfair?
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Many customers will be aware of the recent Australian High Court ruling requiring wagering operators to pay a fee based on turnover to accept bets on New South Wales thoroughbred and harness racing. Racing Victoria and Racing Queensland are both also moving to a fee regime based on turnover with Queensland commencing on 1 August 2012 and Victoria expected on 15 August 2012.
Betfair has been reevaluating its pricing structure in the wake of these decisions and it has been determined that regretfully a turnover charge will be applied to a very small group of customers who meet specific criteria. This will ensure Betfair can continue to offer the best wagering product in the market and provide our customers access to all Australian racing content. The charge will come into effect on 30 July 2012.
The charge will only be applied on those markets which Betfair is required to pay a turnover fee. For a complete listing of jurisdictions affected by a turnover fee please refer to this link.
The turnover charge is being applied to customers in exactly the same way as the racing bodies are charging Betfair, however at a smaller rate. Therefore Betfair continues to absorb a portion of the fee it is being required to pay.
The new turnover charge is applicable to a very small group of customers. It is necessary to ensure Betfair can continue to operative viably on turnover charge markets. The turnover charge is aimed at customer activity which generates large volumes of back bets without providing Betfair with the corresponding revenue to cover the charges accrued. Therefore without the charge Betfair would be left with a turnover fee payable to racing bodies but no revenue with which to pay it.
This charge will only apply to customers who during a week meet all three of the below criteria:
have matched back bets on 50 or more markets which Betfair is subject to a turnover fee from a racing body (‘turnover charge markets’);
have matched back bets with an aggregate value of $2000 or greater on turnover charge markets; and
the total commission generated by the customer on turnover charge markets is less than 1.5% of the aggregate value of matched back bets placed by the customer on those markets.
Total commission generated is half of the commission paid plus half of implied commission, calculated by the formula = (commission paid + implied commission) ÷ 2.
Implied commission is 3% of player losses where players make an overall loss on a single market.
Turnover charge markets will be identified in the grey text of the market view.
The turnover charge will be 1.2% of the aggregate value of matched back bets on turnover charge markets.
Betfair is being charged 1.5% of the aggregate value of matched bets by Racing NSW, Harness Racing NSW, Racing Victoria and Racing Queensland. In both Victoria and Queensland this rate increases to 2% for their premium racing months. You can see a current list of the tracks that the charge applies to click here.
The charge will be calculated for the period from each Monday to Sunday (GMT), and will be payable on a retrospective basis. The charge will be debited from a customer’s UK wallet each Wednesday, alongside any applicable premium charge.
The charge will only be incurred for any week when a customer’s betting activity meets the criteria. Please note the charge will not be applicable to any lay bets.
During a weekly cycle, a customer has matched back bets to an aggregate value of $10,000 over 100 NSW and Victorian thoroughbred markets. The customer has $100 in Total Commission generated.
Criteria:
Back bets placed in 50 or more turnover charge markets
YES
75 turnover charge markets
Matched back bets with an aggregate of $2000 or greater on turnover charge markets YES
$10,000 of matched back bets on turnover charge markets
Total Commission generated on turnover charge markets is less than 1.5% of aggregate matched bets YES
$100/$10000 = 1%
Turnover Charge payable will be 1.2% of $10,000 = $120.
Customers will be contacted directly by a Betfair representative and informed on the first occasion on which this turnover charge would have been payable.
Customers will also be afforded a one-week ‘grace period’ designed to give them an opportunity to refine their betting habits should they wish to do so. The first notifications to affected customers who have triggered the grace period will be sent the week of August 6, 2012.
A summary report of an individual’s weekly activity will also be available if requested.
Betfair remains committed to providing our customers with the best products and service in the market and the implementation of this turnover charge is imperative to the future sustainability of the business.
Despite this new charge, Betfair’s prices will remain the best of any wagering operator on Australasian racing.
Customers seeking further information on this pricing alteration can call the Aus Betfair helpdesk on 1300 238 324 (9am - 7pm AEST).
Turnover charges - Facts about Racing Industry Funding - States and Tracks
Betfair has been reevaluating its pricing structure in the wake of these decisions and it has been determined that regretfully a turnover charge will be applied to a very small group of customers who meet specific criteria. This will ensure Betfair can continue to offer the best wagering product in the market and provide our customers access to all Australian racing content. The charge will come into effect on 30 July 2012.
The charge will only be applied on those markets which Betfair is required to pay a turnover fee. For a complete listing of jurisdictions affected by a turnover fee please refer to this link.
The turnover charge is being applied to customers in exactly the same way as the racing bodies are charging Betfair, however at a smaller rate. Therefore Betfair continues to absorb a portion of the fee it is being required to pay.
The new turnover charge is applicable to a very small group of customers. It is necessary to ensure Betfair can continue to operative viably on turnover charge markets. The turnover charge is aimed at customer activity which generates large volumes of back bets without providing Betfair with the corresponding revenue to cover the charges accrued. Therefore without the charge Betfair would be left with a turnover fee payable to racing bodies but no revenue with which to pay it.
This charge will only apply to customers who during a week meet all three of the below criteria:
have matched back bets on 50 or more markets which Betfair is subject to a turnover fee from a racing body (‘turnover charge markets’);
have matched back bets with an aggregate value of $2000 or greater on turnover charge markets; and
the total commission generated by the customer on turnover charge markets is less than 1.5% of the aggregate value of matched back bets placed by the customer on those markets.
Total commission generated is half of the commission paid plus half of implied commission, calculated by the formula = (commission paid + implied commission) ÷ 2.
Implied commission is 3% of player losses where players make an overall loss on a single market.
Turnover charge markets will be identified in the grey text of the market view.
The turnover charge will be 1.2% of the aggregate value of matched back bets on turnover charge markets.
Betfair is being charged 1.5% of the aggregate value of matched bets by Racing NSW, Harness Racing NSW, Racing Victoria and Racing Queensland. In both Victoria and Queensland this rate increases to 2% for their premium racing months. You can see a current list of the tracks that the charge applies to click here.
The charge will be calculated for the period from each Monday to Sunday (GMT), and will be payable on a retrospective basis. The charge will be debited from a customer’s UK wallet each Wednesday, alongside any applicable premium charge.
The charge will only be incurred for any week when a customer’s betting activity meets the criteria. Please note the charge will not be applicable to any lay bets.
During a weekly cycle, a customer has matched back bets to an aggregate value of $10,000 over 100 NSW and Victorian thoroughbred markets. The customer has $100 in Total Commission generated.
Criteria:
Back bets placed in 50 or more turnover charge markets
YES
75 turnover charge markets
Matched back bets with an aggregate of $2000 or greater on turnover charge markets YES
$10,000 of matched back bets on turnover charge markets
Total Commission generated on turnover charge markets is less than 1.5% of aggregate matched bets YES
$100/$10000 = 1%
Turnover Charge payable will be 1.2% of $10,000 = $120.
Customers will be contacted directly by a Betfair representative and informed on the first occasion on which this turnover charge would have been payable.
Customers will also be afforded a one-week ‘grace period’ designed to give them an opportunity to refine their betting habits should they wish to do so. The first notifications to affected customers who have triggered the grace period will be sent the week of August 6, 2012.
A summary report of an individual’s weekly activity will also be available if requested.
Betfair remains committed to providing our customers with the best products and service in the market and the implementation of this turnover charge is imperative to the future sustainability of the business.
Despite this new charge, Betfair’s prices will remain the best of any wagering operator on Australasian racing.
Customers seeking further information on this pricing alteration can call the Aus Betfair helpdesk on 1300 238 324 (9am - 7pm AEST).
Turnover charges - Facts about Racing Industry Funding - States and Tracks
Fantastic news for all punters that these parasites are being impeded, imo...
Unfortunately they can have as many back & lays as they want in 49 markets per week and the rest will be expected to pay the turnover charges they generate. Skvmfair gets nuttier by the day.
the day premium charge came in at 250,000 40% was the day betfair finished for ftimers
betfair will kill its own throat thats the biggest 1.01 cert 
What's wrong with trading ? It seems an excellent way to make money.I wish I could do it.
They capitulated far too easily in Australia. They shd have played hardball--describing backs as lays or something--and offered much less to the race clubs than they're offering now.
Soon they will have one world-beating product--IR football, and a handful of valuable client relationships with registered and non-registered bookies.
Soon they will have one world-beating product--IR football, and a handful of valuable client relationships with registered and non-registered bookies.
After the High Court decision, there was only two options for Betfair. Pay what the Racing Boards demanded, or pull the plug.
Presumably, without the "useless" middle men these markets are now flourishing and when Betfair see the extent to which their profit has been hithertoo stunted they will soon follow suit on other markets?
Provided the useless (note the absence of inverted commas) middlemen stick to 49 markets per account they'll just about be the only ones who won't be affected by the turnover charge. It looks like the gamblers will be funding the whole shebang as their normal commission rates have increased by between 0.6% and 1.5% (and that's before the possibility of additional turnover charges). If liquidity drops it won't be due to the absence of ticket tout like ponces removing an offer and replacing it seconds later (or earlier) with a worse one.
Even if there was no 50 market grace then, with respect to catflappo's implication that liquidity would be devastated on other sports/markets, it wouldn't even affect liquidity on many of the flies-round-sh1te markets as those taking advantage of the market maker cheat would just lay both outcomes only.
This charge should have brought about an end to tick trading on the affected markets and it shouldn't only be backers that have to bear the brunt of the charge. As always, betfair seem to be looking at the problem upside down.
This charge should have brought about an end to tick trading on the affected markets and it shouldn't only be backers that have to bear the brunt of the charge. As always, betfair seem to be looking at the problem upside down.
their normal commission rates have increased by between 0.6% and 1.5%
Is this correct castiron? I'm assuming 2.6% commission is the lowest you can go on them (6.5% with max 60% discount).
Is this correct castiron? I'm assuming 2.6% commission is the lowest you can go on them (6.5% with max 60% discount).
Have you seen all the empty seats at the Olympics, Feck? 
Let me guess catfloppo. It's because people aren't willing to pay face value, they would rather pay a tout 4 times the value. 
Correct, Feck, but the commission increase only apllies to the three racing codes.
Betfair have not discriminated between states with the commission increase, even though some still operate on Betfair's preferred model, of gross profit.
Betfair have not discriminated between states with the commission increase, even though some still operate on Betfair's preferred model, of gross profit.
There are people dying to see the Olympics, plenty of free tickets and touts prepared to stand at the gates and sell them. There is a clear win/win/win situation available here.
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