Betfair - Ask the Managing directors Q&A Session

[Euler]

I thought when you spoke to them earlier in the year, they advised cash out would not go on the exchange.

In the conference call before that conversation they indicated the opposite so that's why that particular conversation took place.

[steven1976]

Reading the first few pages of that report it feels as though they have almost gone full circle to me. They seem to talk as though the whole reason they went with the sports book was with the idea of attracting people slowly to betfair and then the exchange because thevidea of the exchange was to confusing for the casual public.

If the sports book is doing well as they suggest it is (I've not read the numbers) it would be strange they would go back towards exchange unless they make more from their PC customers as they do being bookmaker.

[Euler]

Off the top of my head I don't think SB revenue has offset the decline in the exchange. I'd have to check that.

[LeTiss]

I sent them a question, but it's a question that will be duplicated by many

Q) Is the continuation of Premium Charge due to financial needs or arrogance?


I don't expect an answer!!!

[Euler]

Credit to them for popping up to answer questions, but I don't honestly think they don't know how little goodwill they have let with exchange users. Maybe this exercise will help them understand that.

[Euler]

Here is the twitter feed for questions, not many TBH, but that said I did email mine in. Only so much you can ask in 126 characters!

https://twitter.com/search?q=%40betfair ... d&src=typd

[LeTiss]

Yes, I emailed mine too Peter

However, just looking at the questions on the Twitter feed, it's clear PC is the main topic time & time again

I honestly don't understand, how they can be so oblivious to the serious damage PC has done to their image

[superfrank]

I don't think the guy from the gaming department will be getting many questions. Online casinos are horrible businesses on a par with pay-day lenders when it comes to preying on, and ripping off, vunerable people.

[Euler]

Here is the live link: -

http://community.betfair.com/forum_chat ... betfair-qa

Not very interesting I am afraid. Same questions and same answers.

[andyfuller]

I kept it to just one question. Doubt it will get a response but thought I would put it up for discussion:

Hi,

I made around £* per year from the exchange with a high strike rate. This was a good living. When the Premium Charge (PC) came in I had been on Betfair for a long time so had gradually built up profits over a long time frame and as such was hit by the PC.

When the PC hit I had to pay 60% a week due to my past activity. This meant I now only got to keep £* a year. So for the risk involved I was better off doing something else to make a living.

I know of a person who made £500,000 a year from Betfair before the Premium Charge, they are now paying 60% but it is still worth their while carrying on with Betfair as they still earn £200,000 a year.

So the PC has meant that for many like me the less sophisticated user it is no longer viable to carry on with Betfair while for the really big hitters who are the most sophisticated, they still get to take home a huge chunk of cash each year.

Firstly this seems to me that the PC is hitting the wrong people. The smaller players are being priced out while the big players are able to carry on and pick up the money no longer being made by the smaller players. The really rich get richer.

This has also meant that the 'dream' of making a living from Betfair has gone for many or at least been restricted to £250,000 over your entire lifetime.

Why can't you introduce a more progressive PC so say the first £100,000 per person per year is charged at say 20%, then anything over £100,000 is charged at 80%. This could be done as a yearly rebate, so you carry on with the current pricing or similar then at the end of the year you get a PC rebate. This still means the collection is straight forward.

It keeps the dream alive for everyone, £80,000 a year is a dream for all most everyone, and then the really big hitters are hit really hard and can decide if they want to carry on past the £100,000 mark (or what ever it is set at).

With the current situation, in another 10 years time the numbers falling into the £250,000 bracket will be a lot bigger even if they are making relatively small amounts each year. So your longest serving customers who don't hammer the exchange will be punished and have it made no longer viable to continue while the really big players can carry on taking home their six+ figures each year.

Many thanks for taking the time to respond.

Kind regards,

.

[Euler]

They haven't answered my question. I knew people would ask about PC but they would defend it by saying they spent it on marketing. But if you look there is currently no exchange marketing at all. It's 100% sportsbook.

[Euler]

I tweeted it and they have now answered.

[Euler]

The ironic thing is the reply on twitter came from 'Betfair Sportsbook'

[LeTiss]

Betfair used to ridicule punters for betting with traditional bookies instead of P2P - Isn't embracing them now hypocritical?


Following lots of research, we hear feedback from customers that many don’t have the time to invest in order to understand the Exchange and prefer a simpler product. The Sportsbook appeals to these customers and allows us to introduce them to betting with Betfair. Because we truly believe in the Exchange model, we have developed a mechanic whereby Sportsbook bets are matched directly into the Exchange – that offers the benefit of Exchange value to our Sportsbook customers, whilst supporting liquidity in Exchange markets. The system is currently being trialled on a small number of Sportsbook markets and will be more widely available in the New Year.

They answered one of my questions, but gave a typical watered down, shitty response

[andyfuller]

It is so far very much the corporate lines being trotted out. The only thing of note is that they have publicly acknowledged that the exchange concept has failed in beating the bookmakers as they said it would many years ago and that they have failed to make the exchange simple to use and as such rather than trying to make it easier to use have opened up a sports book.

Bert et all must be choking on their dinners!