Betfair commission rate +30%!!

[sjaak1943]

At Betfair you always get the best possible products and services.
To ensure you continue to get a premium experience, we are increasing the base commission rate on Betfair Exchange markets in your country to 6.5% from January 30th.

"Best possible products"?

[/b]

[doris_day]

Wow, that's awful. Do they give a reason ? Have the government imposed a new or increased tax ?

[N Counter]

Which country is this?

[alrodopial]

Cyprus.

By the way, a very important question,
By the start of Dec 2014 UK gov will tax with 15% the Gross Gaming Revenue – GGR of offshore betting companies - like BF -
Can anyone make an estimation of who much BF must increase it's commission rate to balance this new tax?

[doris_day]

Estimations are one thing but Betfair's greed knows no bounds. They'll up it to whatever level they think they can get away with. Any excuse.

[negapo]

They increased mine too to 6.5%, i'm in Portugal.

[doris_day]

Some are apparently going to 7%

[N Counter]

They will eventually kill the goose that lays the golden egg. Liquidity will fall to a level when it will be unusable and it will be a case of last one out switch off the light!

[alrodopial]

Some are apparently going to 7%

Is this your estimation for the 15% tax?

[doris_day]

No, some countries are going to go to 7% rather than 6.5%

[alrodopial]

Please correct me where I'm wrong
My maths for the 15% tax:

BF's GGR comes exclusively from the 5% commission, so a 15% tax at this income (GGR) can be balanced if this balance is increased equally (at least)
So a 15% increase at the commission rate will do the business, 5*1.15=5.75% = new commission
Lets expect something like 7%?

[sjaak1943]

Which country is this?

The Netherlands.


If you are having trouble viewing this emailclick here

IMPORTANT CHANGES TO EXCHANGE PRICING
Betfair
Dear Jacob,

At Betfair you always get the best possible products and services. To ensure you continue to get a premium experience, we are increasing the base commission rate on Betfair Exchange markets in your country to 6.5% from January 30th.

You can of course continue to earn significant discounts of up to 60% on this commission rate through the Betfair points system. A full explanation of how your commission is calculated can be found at Betfair Learning.

This rate increase does not apply to any promotional markets with a fixed commission rate.

Thank you for your continued business and good luck with your future betting at Betfair.

Yours Sincerely,

Betfair Customer Service

Please note that the “Rules” tab which is found on each market on the “Classic” or “Old” version of Betfair is incorrectly displaying the Market Base Rate as 5%. Please ignore the information about the Market Base Rate on the “Classic” or “Old” version of Betfair. The correct Market Base Rate for you is 6.5%.

[doris_day]

Please correct me where I'm wrong
My maths for the 15% tax:

BF's GGR comes exclusively from the 5% commission, so a 15% tax at this income (GGR) can be balanced if this balance is increased equally (at least)
So a 15% increase at the commission rate will do the business, 5*1.15=5.75% = new commission
Lets expect something like 7%?

At least. I assume bookies aren't going to just absorb this and that they will add a tax of some sort. If they don't expect a big movement away from BF for short priced markets where BF don't have much of an advantage price wise. I think that's already happened in many cases.

[austingrd]

Looks like they're really milking every person they can find. Greed will haunt them someday.

[kevel]

Hi all, I'm a new member just joined today. I got the email from Betfair as well and did a quick search to see what other people think about this and came across this thread..

Overall pretty disappointed with this news.. The commission rate was already the highest of all the exchanges at 5%, increasing it even further is a huge mistake,

I agree with you guys they will just end up turning off all of their loyal customers. Where does this end.. I wouldn't be shocked if it gets bumped to 8% or even higher in some smaller markets soon. It seems Betfair is going to keep on squeezing its customers until eventually only the die hards are left.

I normally arb and matched bet on football matches mostly and have been looking at other exchanges, currently considering WBX (3% commission), Smarkets (2% commission).

Will probably give the two of them a try this evening. Does anyone else here use these sites?