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swiftynifty
10 Jun 21 18:06
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Date Joined: 16 Jan 07
| Topic/replies: 3,342 | Blogger: swiftynifty's blog
How much commission do Betfair make on a race like that iyo?

I reckon about a grand. Higher or lower?
Pause Switch to Standard View £1,000,000 traded on a race
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Report BULLET TOOTH TONY June 10, 2021 7:11 PM BST
2.5% of a million
Report BULLET TOOTH TONY June 10, 2021 7:13 PM BST
About 25k Gross per an million pound market
Report swiftynifty June 10, 2021 7:14 PM BST
hardly, I just traded a grand on a race and won 2p., they got nowt off me.
Report BULLET TOOTH TONY June 10, 2021 7:28 PM BST
Yes but for every 10k matched on blue, there is 10k matched on pink surely.


Market total is amount matched
Report swiftynifty June 10, 2021 7:30 PM BST
BTT, but like in my case, lots will be the same person/bot so plenty traded but no profit for betfair to get their cut from.
Report greenteethnarrabacktroutmoy June 10, 2021 7:34 PM BST
smoke and mirrors..

20 candidates in usa election had 600 million exposure..how do you get millions in bf?
Report BULLET TOOTH TONY June 10, 2021 7:38 PM BST

Jun 10, 2021 -- 1:30PM, swiftynifty wrote:


BTT, but like in my case, lots will be the same person/bot so plenty traded but no profit for betfair to get their cut from.


But your netting off swiftynifty.

It's total matched. So both sides are fulfilled for it to total.
Only one side win, they pay commission

Report swiftynifty June 10, 2021 8:06 PM BST
BTT, I back a horse, £1000 at evens. I change my mind and lay it at evens. What shows as traded and what commission do Betfair earn?
Report BULLET TOOTH TONY June 10, 2021 8:54 PM BST
But your matched value is then 0.00. But effectively the two people whom matched each of their bets agst yours are now in competition with each other. You have just acted as the middle man.

The 1k is still matched by someone and therefore one will win
Report swiftynifty June 10, 2021 9:07 PM BST
My lay negated my back so I didn't win on the market, I paid zero commission, yet £2000 was traded by me in the totals.
Report BULLET TOOTH TONY June 10, 2021 9:16 PM BST
2000 wasn't though, because only ever would u be holding liability of 1,000.

The clue is matched.

Which is a win bet to a lay bet
Report BULLET TOOTH TONY June 10, 2021 9:17 PM BST
Either way...they make plenty.
Report swiftynifty June 10, 2021 9:23 PM BST
so what are you saying? How much per race iyo?
Report BULLET TOOTH TONY June 10, 2021 9:32 PM BST
I'm saying that if a million is matched, then that's a million in liabilities to be paid out by those whom lost. Therefore a million pound in winnings.

So anywhere between 2-5% of the total would be paid in commission to betfair.

I would guess avrge is about 2.5% so 25k per a million.

Would imagine there is a large amount of overheads to cover, but wouldn't be suprised if the next profit was still reasonable for turnover.
Report BULLET TOOTH TONY June 10, 2021 9:33 PM BST
Nett not next
Report Movewiththetimes June 10, 2021 9:49 PM BST
IMO Swift is right or why would they push sportsbook where you get peanuts on, still must make more over there. I traded for years especially on tennis, my bets would be of the page but liability not much.
Report Movewiththetimes June 10, 2021 9:52 PM BST
*off before the dictionary police arrive
Report six_six_six June 10, 2021 11:17 PM BST
Insuffient information.  It depends on the betting shape of the race and the price of the winner.

Consider the following contrived examples, using a 100% book and for simplicity assume all on 2%.


A  10 horse race with every runner trading at 10.  50k backed on each horse gives you total matched of £1m.  Whatever horse wins generates 450k and the 9 losers 25k each. Total comm of .02 * 675k = 13,500.

B  11 horse race with fav at 2.0 and the other 10 all at 20.  250k on the fav, 25k each the others gives you a total of £1m matched

If the fav wins .02 * (250k + 10*25k) = .02 * 500k = 10,000.
If one of the others win .02 * (250k + 19*25k +9*25k) = .02 * 950k = 19,000.
Report swiftynifty June 11, 2021 12:04 AM BST
666, losers don't pay commission. In example A , I had a 10k back bet, someone layed it. I then decided to lay it at the same price, the same person chose to back it back. We are both zero on the market and pay zero commission, but there's 40k in the traded totals. This must go on multiple times per race. It is surely theoretically possible for BF to make nothing on a race.
Report six_six_six June 11, 2021 12:41 AM BST
When I say 'losers' I'm talking about losing horses, the layers of which will pay commission.  However you are right in that individuals trading in and out mean that the matched amount is inflated and the figures I gave were maximums. The point I was trying to make though is that shape of the market and price of the winner have a great impact on the amount of commission generated.

And yes, it is theoretically possible for BF to not make a penny. Consider a 2 horse race, you lay me an even million on each and I do likewise.  Neither of us can win or lose a penny so commission is zero despite a matched total of £4m.
Report swiftynifty June 11, 2021 12:50 AM BST
so, taking all that into account, what do you think BF make on a £1 million traded race? Obv a guesstimate.
Report six_six_six June 11, 2021 1:54 AM BST
between 0.5 % and 1 %
Report longbridge June 11, 2021 2:48 PM BST
@bullettooth

"I'm saying that if a million is matched, then that's a million in liabilities to be paid out by those whom lost. Therefore a million pound in winnings."

But it is not.  If you want a really clear example, look at the many, many millions traded on cricket - it is surely the same money flowing back and forth, back and forth as the price swings one way or another?  The actual amount of money changing hands when the market settles is surely a fraction of the advertised total matched?

It is really hard to find recent data, but back in the 2013 AR, BF claimed ~£250m of Exchange revenue (which I am guessing is commission and premium charge combined?) on matched volume of ~£50bn, which I make 0.5%?
Report sageform June 11, 2021 3:01 PM BST
All depends on how they do their stats. I lay off about half of all my bets so break even on those events. Are those bets included? No commission from me.
Report greenteethnarrabacktroutmoy June 11, 2021 3:05 PM BST
@bullettooth

"I'm saying that if a million is matched, then that's a million in liabilities to be paid out by those whom lost. Therefore a million pound in winnings."

what if there were only 2 bets on an event...£500,000 laid at 1000
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