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Punters Declare Mutiny on Betfair

The betting exchange website we’ve all come to love - Betfair - have always been known for their innovative ideas and “power to the punter” type ethos, but regular readers of OBE will know that we’ve often spoken about the need to shop around for the best value, mixing and matching your bets between bookmakers and betting exchanges, because it’s a fact that Betfair doesn’t always offer the best odds, or even the best value.

The first time we wrote about this it attracted comments from more than one member of the Betfair staff who were eager to point out that they did offer 20% over SP, or higher, across the board, but our point was that this is an average they’re quoting and it’s easy to get 20% over SP on outsiders (the true chance of a 33/1 shot winning is actually more like 100/1), however those at the bottom end of the odds range regularly trade so close to SP that you’re actually losing money when their commission is factored in.

So while Betfair is an innovative service who should be highly commended for their ingenuity and the alternative betting options they offer to the punter, it certainly isn’t the ‘be all and end all’ of value betting and as time goes on this is becoming more evident than ever.

“GREED…. GREED…. GREED!”

This was the subject line of a post I read on a popular horse racing forum this morning and it refers to Betfair’s new “Premium Charge” policy for successful customers.

Just in case you missed the (strangely quiet!) announcement about this latest “innovation” from our mighty leader, here is how it works…

You will only be considered for the Premium Charge if, over the previous 60 weeks, you satisfy the following criteria:

• Your account is in profit;
• Your total charges paid are less than 20% of gross profits; and
• You bet in more than 250 markets.

You can read the complete rules here…

http://content.betfair.com/aboutus/?product=exchange&sWhichKey=Betfair%20Charges

(Skim down to section 5 - Premium Charges)

Betfair have decided that if you’re a “successful customer” who has made a profit over the previous 60 weeks and paid them less than 20% of your gross profits, well, they’re going to take their 20% cut of your profits anyway. Yep, I know it’s hard to believe that they would have the audacity to do this, but from the 22nd of September that’s exactly what’s happening.

So how will this affect you? Well, if your account isn’t in profit it won’t trouble you at all, but if you’re a profitable backer or layer you could possibly be in for a nasty shock and if you’re a trader who plays the market then you’re almost certainly in big trouble. I know a few traders who can easily make £20K-£30K a year trading on Betfair, some MUCH more, and very few of them will be paying more than 20% of their gross profit in fees currently, but under the new system they can expect to be significantly worse off.

My opinion on this is similar to the subject line of the forum post I read earlier. For a company who has always claimed to offer the best value in the business, with the “We Love Winners” mantra, it’s beyond belief that they’ve introduced penalties for successful customers.

What do you think? Please post your views….