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Betfair move is great news for punters
Betfair’s head office probably isn’t cracking open the champagne, but a few months after writing that my exchange days were behind me, I’m back – and I suspect many others will be too.
For many years, I paid Betfair’s steep 40 per cent premium charge. With reduced liquidity, my profits slowed to such a trickle that, early last year, I decided it simply wasn’t worth the time and effort anymore. But just before Christmas, Betfair announced they were replacing the much-criticised premium charge (introduced in 2008) with something new: the 'expert fee'.
The old premium charge had a glaring flaw: it punished loyalty. It was calculated on lifetime profits, meaning even modest, consistent winners could find themselves saddled with hefty charges over time. The new expert fee, however, is based on your most recent 52 active weeks, which is far fairer.
So, what does this mean for us punters? Betfair say 80 per cent of customers will see a reduction in charges, and over half of those who were paying the premium charge will not pay anything at all. That’s excellent news, and Betfair deserve credit for taking this step.
To highlight the decline in liquidity over the years, back in June 2012, I had an interest in a six-runner 0-95 handicap hurdle at Fontwell. On Betfair the total matched for that race was £949,878. On the Boxing Day just gone, the only two races to exceed that total were the King George and Christmas Hurdle.
Paul Townened and Banbridge return to the Kempton winner's enclosure
The King George was one of only two races on Boxing Day where more than £949,878 was matched
Credit: Edward Whitaker
Of course, this decline isn’t all down to the premium charge. The Gambling Commission has caused havoc with unclear affordability rules, leading bookmakers to perhaps adopt overzealous financial checks. This, understandably, has driven many punters away from the sport altogether.
Because of this, I doubt we will return to the golden days of huge liquidity. However, replacing the premium charge with the brilliantly named expert fee could see an upturn.
And I hope it does. As a means of betting, the exchanges represent by far and away the best value for punters. In 2024, the Betfair SP beat the industry price in 97 per cent of cases, even when factoring in two per cent commission. Additionally, the median overround in the win markets for all UK and Irish racing stood at 100.19 per cent (excluding commission), presenting a relatively low hurdle to clear if your sole focus is achieving profitable betting.
With these changes, I’m genuinely excited about what 2025 might bring. The removal of the premium charge and introduction of the expert fee feels like a fresh start, and I’m optimistic about the opportunities this will create for punters like me.
It’s a great time to get back into the game.
Betfair’s head office probably isn’t cracking open the champagne, but a few months after writing that my exchange days were behind me, I’m back – and I suspect many others will be too.
For many years, I paid Betfair’s steep 40 per cent premium charge. With reduced liquidity, my profits slowed to such a trickle that, early last year, I decided it simply wasn’t worth the time and effort anymore. But just before Christmas, Betfair announced they were replacing the much-criticised premium charge (introduced in 2008) with something new: the 'expert fee'.
The old premium charge had a glaring flaw: it punished loyalty. It was calculated on lifetime profits, meaning even modest, consistent winners could find themselves saddled with hefty charges over time. The new expert fee, however, is based on your most recent 52 active weeks, which is far fairer.
So, what does this mean for us punters? Betfair say 80 per cent of customers will see a reduction in charges, and over half of those who were paying the premium charge will not pay anything at all. That’s excellent news, and Betfair deserve credit for taking this step.
To highlight the decline in liquidity over the years, back in June 2012, I had an interest in a six-runner 0-95 handicap hurdle at Fontwell. On Betfair the total matched for that race was £949,878. On the Boxing Day just gone, the only two races to exceed that total were the King George and Christmas Hurdle.
Paul Townened and Banbridge return to the Kempton winner's enclosure
The King George was one of only two races on Boxing Day where more than £949,878 was matched
Credit: Edward Whitaker
Of course, this decline isn’t all down to the premium charge. The Gambling Commission has caused havoc with unclear affordability rules, leading bookmakers to perhaps adopt overzealous financial checks. This, understandably, has driven many punters away from the sport altogether.
Because of this, I doubt we will return to the golden days of huge liquidity. However, replacing the premium charge with the brilliantly named expert fee could see an upturn.
And I hope it does. As a means of betting, the exchanges represent by far and away the best value for punters. In 2024, the Betfair SP beat the industry price in 97 per cent of cases, even when factoring in two per cent commission. Additionally, the median overround in the win markets for all UK and Irish racing stood at 100.19 per cent (excluding commission), presenting a relatively low hurdle to clear if your sole focus is achieving profitable betting.
With these changes, I’m genuinely excited about what 2025 might bring. The removal of the premium charge and introduction of the expert fee feels like a fresh start, and I’m optimistic about the opportunities this will create for punters like me.
It’s a great time to get back into the game.
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