New Premium Charge on the way

News, chat and debate about the Betfair betting exchange.
iambic_pentameter
Posts: 443
Joined: Wed May 18, 2016 1:24 pm

"but the fact this weakness continued in Q2 highlights the competitive challenge facing racing commissions from low margin sportsbooks and price discounting by smaller exchange competitors"

They might be smaller exchange competitors now Betfair, but they be growing ;)

Will be interesting to see how the racing markets change in the next few years.
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Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

Q&A session started
iambic_pentameter
Posts: 443
Joined: Wed May 18, 2016 1:24 pm

If you could let the forum know of any interesting questions / answers that come out, that would be fantastic, Euler.
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Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

"Do you intend to reduce commission to compete?"

We continue to innovate.....we suspect some customers are more price sensitive.

We will have better visibility later in the year.
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Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

They have cited Bet365 as a problem for their horse racing offering, but that doesn't seem to be an exchange related issue.
iambic_pentameter
Posts: 443
Joined: Wed May 18, 2016 1:24 pm

Thanks for sharing these, Euler.

"We continue to innovate.....we suspect some customers are more price sensitive"

Oh really, Betfair?
annuity
Posts: 81
Joined: Wed Dec 21, 2011 8:03 pm

iambic_pentameter wrote:
Wed Aug 08, 2018 11:51 am
Thanks for sharing these, Euler.

"We continue to innovate.....we suspect some customers are more price sensitive"

Oh really, Betfair?
Exactly. And it's not just that it's the whole negative atmosphere around exchange users that has been persistant since Premium Charge was introduced. I really feel Betfair missed a trick because just as PC came in to effect social media really started to take off. The Betfair exchange could have benefited hugely at little cost and reached new levels.
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LeTiss
Posts: 5386
Joined: Fri May 08, 2009 6:04 pm

Whatever happens, it will be shit for us traders

BF are more interested in punters these days, they've made that perfectly clear
iambic_pentameter
Posts: 443
Joined: Wed May 18, 2016 1:24 pm

I'm hopeful that in the same way that Betfair came along and shook the industry up, another player will emerge - whether that will be one of the 'other' three or someone else, who knows.

Maybe in years to come, sports trading will be seen as a bona fide way of making an additional income - be that full or part time.

I don't think I've spoken to one person outside of trading who even knew Betfair existed let alone the fact you could lay!

My Dad even said to me: "Is that legal?"
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LeTiss
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Joined: Fri May 08, 2009 6:04 pm

iambic_pentameter wrote:
Wed Aug 08, 2018 12:39 pm
I'm hopeful that in the same way that Betfair came along and shook the industry up, another player will emerge - whether that will be one of the 'other' three or someone else, who knows.
We've been saying that for years, it hasn't really happened
iambic_pentameter
Posts: 443
Joined: Wed May 18, 2016 1:24 pm

Fair point, LeTiss and also sad that long term users like yourself aren't optimistic about the future.
andyfuller
Posts: 4619
Joined: Wed Mar 25, 2009 12:23 pm

andyfuller wrote:
Thu Aug 02, 2018 4:07 pm
I have just received an 'offer' from Betfiar for me to pay just 2% commission for almost the next 3 months. I suspect as it appears to be a marketing email that it doesn't mean my PC rate is going to 0% from 60%.
Just received another offer from Betfair for 2% commission, this time on the Premier League:
2 percent com (Offer 2).png
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ShaunWhite
Posts: 9731
Joined: Sat Sep 03, 2016 3:42 am

I thought generating commission reduced your PC?
If comm is only 2%, and therefore less is generated to offset your PC, wouldn't that just increase the PC you're paying by the amount of commission you're saving?

..pls excuse the naivety.
spreadbetting
Posts: 3140
Joined: Sun Jan 31, 2010 8:06 pm

ShaunWhite wrote:
Wed Aug 08, 2018 2:40 pm
I thought generating commission reduced your PC?
If comm is only 2%, and therefore less is generated to offset your PC, wouldn't that just increase the PC you're paying by the amount of commission you're saving?

..pls excuse the naivety.
Like everything with the Premium charge there's never a simple answer Shaun, so much depends on how you win and lose. If you churn, a low rate can mean you're better off simply because you get 3% implied comm on the losing part of a churn against the actual comm paid of 2% giving you an implied 2.5% comm against your end pc payment. But lots of people don't churn and simply get Betfair to set their base rate at say 10%.

I got on the pc allowance trial and had my first allowance yesterday , hopefully they'll consider going down the allowance route as the £250k level is very restrictive for any players who've been with them since the start and aren't necessarily making large profits from the exchange.
andyfuller
Posts: 4619
Joined: Wed Mar 25, 2009 12:23 pm

andyfuller wrote:
Thu Aug 02, 2018 4:07 pm
I have just received an 'offer' from Betfiar for me to pay just 2% commission for almost the next 3 months. I suspect as it appears to be a marketing email that it doesn't mean my PC rate is going to 0% from 60%.

I am awaiting confirmation from them.


2 percent com.png
They have confirmed that I would still have to pay 60% Premium Charge.

I put forward years ago now an annual allowance method to one of the Directors in the business who had the decency to call me up and discuss things. He quite liked the idea and said he would investigate it further and discuss it with others. Nothing ever came of it though. It is discussed in some detail somewhere else on the forum from memory.

Spreadbetting - Did you have to request to be part of the trial or were you just picked at random? Also how does the 10% base rate method work? (Sorry but out of touch with it all these days).
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