Posts Tagged charges
Betfair premium charge & earnings soar
Posted by Peter Webb in Bet Angel on June 29th, 2011
As we are all aware now, Betfair pleaded poverty and an imbalanced business model again yesterday, when announcing another new charge. This time hitting consistent earners for up to 60% of their profits. We heard the similar stories for data charges, transaction charges and the premium charge part one and all the other various amendments over the years to their charge structure.
This didn’t stop them from announcing record revenue and earnings a few hours later. Earnings per share are up 56.2% on the year before. So on the face of it, it looks like profitability isn’t a problem. See the full announcement here: -
http://corporate.betfair.com/media/press-releases/2011/2011-06-29.aspx
Given the apathetic response to the first premium charge I always guessed that Betfair would go for an increase at some point. The thing I didn’t guess was that it would triple! I pencilled in a worst case scenario of 50% but never thought a figure above that was feasible, rational or viable. It seems I was wrong. It remains to be seen what impact this will have on Betfair’s ‘We like winners’ stance.
The curious thing about this new charge is that it makes sense, at 60%, for me to teach others how to do it and not to do it myself. This doesn’t really solve Betfair’s ‘problem’ if they are concerned with the cost of servicing my account? It also means if I can earn 40% of my Betfair total on Betdaq then I should switch, and this is perfectly possible to do.
On the positive side Betfair just confirmed by imposing this charge who are the most successful ever users of Betfair. So I should be pleased with that as I am in that group. It also means that increased competition in the market is now almost a nailed on certainty, which we should all welcome.
At the lower levels of the market there is still room for newbies and aspiring super users. Unfortunately it is now unlikely they will reach the same heights as people that have gone before them, but there is still plenty of opportunity there. You will just have to stop when you get to £250k!
BHA announces serious charges
Posted by Peter Webb in Bet Angel on May 20th, 2011
Following an investigation into suspicious betting activity on a number of races, the British Horseracing Authority has charged 13 individuals with serious breaches of the Rules of Racing. The allegations focus on horses being laid to lose on betting exchanges in 10 races that took place between 17 January 2009 and 15 August 2009.
Each of the jockeys is additionally charged with a breach of Rule 243 of the old Rules of Racing in that it is alleged they communicated directly or indirectly to one or more betting exchange account holders, for material reward, gift, favour or benefit in kind, information relating to the prospects of the named horse.
Full press release here: -
New Betfair charge?
Posted by Peter Webb in Bet Angel on December 21st, 2010
Seems like a lot of people received an email from Betfair yesterday evening saying they will charged £4 a month if they have an inactive account. Even I got one!
My inactive account was an account I used to test Euro configurations of Bet Angel and now, despite my activity elsewhere, it looks like they want to charge me unless I actively use it. I’ll be on the phone this morning to withdraw funds and close it down. I suspect there will be quite a few others that will do that as well.
For those that opened an account and forgot about it, it looks like Betfair will just debit their account. Not sure that an email is enough effort to warn those people. A letter would be more appropiate and the timing, just before christmas and during the christmas break, is a stinker on the PR front.
Anyhow, check all your accounts and log into the premium charge area to check if you have some forgotton accounts or else you will be charged by the look of it. Log into them or do something to avoid the charge.