New Premium Charge on the way

News, chat and debate about the Betfair betting exchange.
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SeaHorseRacing
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Been waiting to write this for a little while as I have known about it but dont have all the details.

According to my sources there is speculation of a new premium charge coming into play 2017.
Although I am not part of that club yet, I have some solid information from the horses mouth that lower earning players are getting hit by an increase.

They are in the process of revamping the whole way it is calculated and from my view that it may be distratious for some.

Could be an incinle to why they refund alot of people who got stung the other day.

Obviously this is an annonymous post but just warning you guys...

My sources are through one middle man so I cannot supply you with any other information other then its "apparently" going to happen.
cybernet69

I imagine the gambling commission will be all over BF.
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Euler
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Well according to this chap it's going down

https://twitter.com/PremiumCharged
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SeaHorseRacing
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cybernet69 wrote:I imagine the gambling commission will be all over BF.
From what I gather the new calcuation is to increase liquidity in other sports markets.

Like I said i dont have it in written but from what I can gather is the PC will be calculated per sport. So technically alot of people will be better off but some wont be. I guess its there way of increasing liquidity to all markets, but if your palying just one market or sport your be hard hit...


Gambling commision do nothing.
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Mr Undercover
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Are they still sticking with the threshold of £250k before PC applies ? Reducing this will make life tough for many more.

If common sense prevails they'll inflict the worst of the changes on the on-course guys mopping up fallers etc who have no skill but to beat the clock. If they reduce the rediculas top layer of 60% and have a flatter structure this would make sense.

PC was always a jealousy tax as BF didn't like to see people making profits they couldn't achieve internally. Of course if they were smart and had an internal department trading fairly alongside everyone else they could capture most of the surplus themselves. Of course they could they would have all the advantages and then could legitimately lower PC tosay 5-10%
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SeaHorseRacing
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Mr Undercover wrote:Are they still sticking with the threshold of £250k before PC applies ? Reducing this will make life tough for many more.

If common sense prevails they'll inflict the worst of the changes on the on-course guys mopping up fallers etc who have no skill but to beat the clock. If they reduce the rediculas top layer of 60% and have a flatter structure this would make sense.

PC was always a jealousy tax as BF didn't like to see people making profits they couldn't achieve internally. Of course if they were smart and had an internal department trading fairly alongside everyone else they could capture most of the surplus themselves. Of course they could they would have all the advantages and then could legitimately lower PC tosay 5-10%
I have no idea about the ins and outs all I know is they have discussed this and it is something there working on. What I do know 100% is there will be a change come next year.
My source is a solictor so I do believe them but what exactly I dont know and wether they are in the process of changing it as we speak I have no idea but they are making changes and its on its way.
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Euler
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I guess it depends on what problem they are trying to solve. If it's margin then that's potentially an issue, if it's addressing the decline in some markets and addressing unfairness in the distribution of winners and losers then that should be welcomed.

Maybe we should put up some thoughts on what we want?
dt888
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Peter have you actually heard anything yourself then about possible changes next year or is this news to you?
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SeaHorseRacing
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Euler wrote:I guess it depends on what problem they are trying to solve. If it's margin then that's potentially an issue, if it's addressing the decline in some markets and addressing unfairness in the distribution of winners and losers then that should be welcomed.

Maybe we should put up some thoughts on what we want?
I aggree.

Personally I have no problem with a premium charge at all but tbh they need to make a change for the better. What makes me crazy is there system is flawed because if you lose your edge there is no opportunity for you to come back.

Betfair are clearly concered about both the issues you have mentioned.

Bookmakers are under alot of pressure at the moment and we are very close to the laws being changed on having to lay a customer to a reasonable stake. Its happened in Australia and its not far away from it happening here.

The quicker that happens the better for the exchanges.
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LeTiss
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SeaHorseRacing wrote: Personally I have no problem with a premium charge at all
Easy to say when you don't pay it ;)
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Euler
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dt888 wrote:Peter have you actually heard anything yourself then about possible changes next year or is this news to you?
Nothing
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SeaHorseRacing
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LeTiss 4pm wrote:
SeaHorseRacing wrote: Personally I have no problem with a premium charge at all
Easy to say when you don't pay it ;)
Very good point, Let me re phrase that. I would have no problem in paying a reasonable amount in premium charge.

Betfair are very concerned about potential law suits as I what I gather certain customers especially market makers have been getting special PC rates.
I can see Betfair as a kind of PPI scenario in a few years time if it gets worse.
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aperson
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Slightly worried by this. I used to pay PC but haven't done for a few years now although through a recent change in strategy I probably will be in another couple of years again, but it sounds like that may happen sooner than I planned!

I certainly fall into the category of making most my profits in a small number of markets, (mostly football correct scores and over/under) but these markets have suffered terribly liquidity wise in recent years so I don't see how increasing PC on me would help. Maybe they would only increasing it in more liquid markets.
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SeaHorseRacing
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I have been thinking about this for a while and my ownly logical reasoning for them to do this is betfair are interacting strongly in their own markets.

I have no facts but that day at Kempton a month or so when it went crazy I think was betfair playing there own markets and I think there trying to push out traders to take control of their own markets.
spreadbetting
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LeTiss 4pm wrote:
SeaHorseRacing wrote: Personally I have no problem with a premium charge at all
Easy to say when you don't pay it ;)
Too true, let's hope they drop the £250K band to put everyone on an equal footing, then people may start to see why some others complain.
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