Betfair loses race fields legislation case

[CaerMyrddin]

Don't know if some are still trading as before, as sometimes you can 'feel' people scalping or trading as usual to a net loss after charges. Maybe some aren't aware of the changes or haven't looked at their numbers after charges? Some markets have surprisingly become more competitive, in a way as some describe the UK markets have changed, as if sometimes someone turned on some kind of market 'master and commander'.

[blueport]

Unable to provide actual data but the weaker class midweek races appear somewhat illiquid compared to that which existed prior to the changes.

I agree with that observation.

I think the 50 market ceiling is making people pick their targets more carefully.

The only turnover charge markets I trade now are on Wednesday and Saturday. Prior to the charges I would play in everything.

[blueport]

My account was suspended this morning.

Spoke to Betfair and was basically told to stop trading the turnover markets.

I had not exceeded the 49 market criteria.

[fuzzer54]

Did they give a reason why your account was suspended? Would be interesting to know as I am continuing to trade on the Aussie racing but make sure I stay within the 49 race limit each week.
We are only playing by their rules. Why would that lead them to suspend accounts? It makes no sense. After all, they can easily change those rules - they do it all the time, always to our disadvantage!

[blueport]

They acknowledged I had stayed within their criteria but my account was still generating too much turnover.

My activity is just not sustainable.

They did agree to unlock my account but should I continue with my current habits it will be goodbye Betfair.

All of the Spring racing is about to commence and I can't do a thing!

[Euler]

That's worrying. Here are the rules, but we will re-interpret them at our wish.

I'd be interested in knowing what they deem as unviable, I thought they had made this pretty clear?

[fuzzer54]

They really are an unprincipled company aren't they? To threaten to close your account when you have not broken a single rule is an absolute disgrace. I wonder who makes these decisions? And I wonder why they haven't done the same to me and many others who, judging by the betfair forum, are doing precisely the same things. Perhaps they just haven't got around to it yet! It really is very unsettling to customers who've generated fortunes for them over the years. I just hope that one day Betdaq can be genuine rivals.

[switesh]

Just had the unpleasant call from BF Aus today morning (followed by an email) informing me that I was invited to their 'turnover charge' party.

Dear Switesh

You may be aware that certain Australian racing bodies are now charging wagering operators a fee based on the ‘turnover’ generated on their markets.
Betfair has introduced a turnover charge which applies to customers who meet certain thresholds.
We wish to advise that last week (Monday to Sunday GMT) your account met these criteria for first time. You generated $301.02 worth of Turnover Charge fees, however we have waived this amount as this is the first time you have been affected.
This charge applies to customers who during a week:
• have matched back bets on 50 or more markets which Betfair is subject to a turnover fee from a racing body (‘turnover charge markets’);
• have matched back bets with an aggregate value of $2000 or greater on turnover charge markets; and
• the total commission generated by the customer on turnover charge markets is less than 1.5% of the aggregate value of matched back bets placed by the customer on those markets.
Total commission generated is half of the commission paid plus half of implied commission, calculated by the formula = (commission paid + implied commission) ÷ 2.
Implied commission is 3% of player losses where players make an overall loss on a single market.
Turnover charge markets will be identified in the grey text of the market view.
To ensure our valued customers are given an opportunity to reassess their betting habits should they wish, we are offering you a ‘grace period’ before becoming liable to pay this charge in the first instance. You will not be charged this week, however you will be charged if you meet the criteria going forward. Therefore you cannot become liable to pay this charge until the next weekly cycle commences on the first Monday following this email.
Betfair is able to provide you with a statement of your betting activity for the week during which you would have incurred this charge, other than for the grace period.

WHAT IS THE CHARGE?
- The turnover charge will be 1.2% of the aggregate value of matched back bets on turnover charge markets.
- The charge will be calculated for the period from each Monday to Sunday GMT, and will be payable on a retrospective basis. The charge will be debited from a customer’s UK wallet each Wednesday, alongside any applicable premium charge.
The charge will only be incurred for any week when your betting activity meets the criteria. Please note the charge will not be applicable to any lay bets.
Should you wish to find out further information on this fee, please call the Betfair helpdesk on 1300 238 324.
Kind regards,
Betfair Helpdesk

[Euler]

Sorry to see you have fallen onto their radar as well.

[Wildly]

Could this mean a change to Betfair turnover charge for trading on Victorian racing?
http://www.racingvictoria.net.au/news/r ... ained.aspx
The 3rd point in Racing Victoria's announcement of revision of product fees from 1st July reads:
"That turnover for betting exchanges will be assessed on the aggregate of net customer winnings rather than the aggregate of all bets taken on the ‘backer’s side’ of the exchange as it is a more appropriate measure of the volume of customer transactions."

[Euler]

Thanks for posting that. It's a bit vague isn't it?

I'm not sure what they are looking to achieve or implement. If they try and levy on net winnings then surely there will be little to levy against? Maybe they are trying to broaden the definition but have not thought it through?

I guess we will need to speak to Betfair to understand what happens given this change?

[Wildly]

Yes, I'm puzzled by it. Seems some grounds for hope though.

[Euler]

I think we will have to wait though. It seems they are hinting that they want 2% from backers and layers, whoever wins. Which would be impossible for Betfair to do.

[Seymour]

I am more concerned about Betfair trying to eradicate Oz trading, given their obvious attempts at targetting punters while taxing traders with the Turnover charge. Not being able to join Betdaq only makes it worse. After investing a massive amount of my time studying Betfair racing markets for well over a year now, I am not too sure what the future holds.

[Wildly]

The confirmation we've been waiting for:
REMOVAL OF TURNOVER CHARGE FROM VICTORIAN THOROUGHBRED RACING

Betfair is pleased to announce that it will remove the turnover charge from Victorian thoroughbred racing from 1 July 2013.

This charge was introduced in 2012 after Racing Victoria (RV) moved to a turnover model of charging fees to Betfair which equated to more than 60% of the revenue Betfair derived from Victorian thoroughbred racing.

RV recently announced that, from 1 July 2013, it would assess turnover for a betting exchange as ‘net customer winnings’ rather than the aggregate of all bets taken on the ‘backer’s side’ of the exchange.

In making its announcement, RV described this as “a more appropriate measure of the volume of customer transactions.”

Betfair is hopeful that other jurisdictions will amend their definition of turnover to ‘net customer winnings’ and we will be able to remove the turnover charge on their specific markets.

For the time being, we encourage customers who utilise the trading aspects of the exchange to continue to do so on markets where Betfair is charged on revenue or net customer winnings.

For more information about these markets, head to http://www.factsaboutfunding.com.au.