Betfair Premium Charge

[freddy]

One of my former students have emailed me to describe in detail what will happen with `l` introduction of new PCs in just a year or two. Despite my aversation to Betfair I have to admit that his theories are fascinating. This vision leads me to reason with a different perspective from those seen `from now on various forums. He is convinced that Betfair is not trying to eliminate competition, but tries to eliminate traders which have been raping the market for years, giving the possibility for more people to earn profits and having their bets matched with the additional introduction of more in play markets.
It is still possible that Betfair will participate actively in the market as `already been doing for some time but, with an increase in capital to ensure more stable markets to their users gaining a larger slice of profits.

This is just the introduction of the e-mail he sent me but, it took me too long to translate and I may have missed some points. When I finish i will post figures and more details he mentioned in his e-mail.
I still have some doubts about betfair integraty about everything they introduce but, lets be positive..

so your saying they are like modern day Robin Hoods , taking from the rich traders and giving back to the other out of the goodness of there own hearts.

It sounds abit like a press statement that BF would release, we are making the changes to benifit you not us.

i don't think so myself , there doing it because they think it will increse there bottom line, whether it will or not remains to be see.

[LeTiss]

There will still be some traders earning say £350kpa, who adopt the attitude that 60%PC will still result in £140k take home. That's more than most people could dream of, and the 60% is only replacing 40-50% income tax, which most of us don't pay.

I'd be interested to know what BF do about such individuals.
Would they physically close them down, or could they introduce even more charges?

[enzabella2009]

FREDDY posted
so your saying they are like modern day Robin Hoods , taking from the rich traders and giving back to the other out of the goodness of there own hearts.

It sounds abit like a press statement that BF would release, we are making the changes to benifit you not us.

I did not say that but, if you found it funny I write more jokes

I think betfair work more like an extortion organisation, we have something like that back in sicily and naples but, it was my student that opened up a new scenarios in my thinking. He did not state that betfair will take from the big traders to give it back to others he just said that more traders will capable of making an income lower then 50K a year with plenty of benefits for betfair itself, including the increase of their activity in the market.

[freddy]

It just sounded like something that Betfair themselves would say thats all.

Like they did with the cross matching, when they said they were doing it so customers got there bets matched more quickly and not because it nets them a fortune.

[enzabella2009]

I get it....My student has gone to the other side, he is trying to manipulate my thoughts...cheeky bs...he works for BF

[Euler]

Just spoke to Betfair who, to their credit, did phone yesterday when I couldn't take the call and returned the call today. I told them 60% was too much rake for the risk I take in trying to generate incredibly small returns on capital. In short, I didn't get a sympathetic response.

[hgodden]

Did you get the impression that this is about just trying to squeeze more money out of us or more about our long term extermination altogether? Or was it just a PR guy who wouldnt really know what their plans are?

[Euler]

The former, they pleaded poverty but I pointed them to the results they announced showing earnings up 56% this morning.

He said that 40% of something is better than 0% of nothing. Touche, any % of something is better than nothing at all. I pointed out to him that due to the structure of the charge I can't even place a normal bet on anything any longer as they will take 60% of the winnings. I can get a better rate down the pub.

At the end of the the day he was only toeing the company line, so I wasn't too harsh on him I just echoed the comments on the forum.

[andyfuller]

So they expect people to carry on and pay 60% to them?

I go back to the example of someone making £100,000 a year, are they really expecting them to carry on with all the sacrifice and risk for just £40,000?

I still have to keep re-reading that it says £250,000 Lifetime and not a year!

[jimrobo]

I genuinely think they will have a rethink after 6 months if the people on 60% move to Betdaq on day 1.

I hope you said you could make 40% of what you currently make on Betdaq.

[Euler]

"On average, Betfair grabs about a 72 percent share of its customers’ gambling money, said Chief Executive Officer David Yu in a conference call with reporters. "

I think this is a very telling quote.

[walshy]

I'm actually quite staggered that they honestly expect people to just wear the 60% charge.

In fact I still dont believe that they truly expect that despite what they may publically say.

[andyfuller]

Just heard back from Betfair after challenging their figures and I await a response but there is an error somewhere unless I have cocked up which I don't believe I have.

They state:

"*by net profits we mean the amounts won less the amounts lost, on all exchange markets, less all commission paid and Premium Charges debited."

However, they have based my Net Profit I believe on the same figure as used on the current Premium Charge.

They have taken my Gross Profit and subtracted:

~Commission Generated, NOT commission paid which is different;
~ Premium Charges and NOT Premium Charges debited which is again different as the Premium Charge figure assumes you have been paying the Premium Charge for the lifetime of my account which is not the case, only the last few years.

So unless I have got it wrong, either the Net Profit Figure they have quoted me incorrect or they have messed up the Press Release and meant Commission Generated and Premium Charge not Premium Charge debited.

Or have I got it wrong?

[jimrobo]

I took it your NET profit is your gross P&L minus TOTAL charges figure on the following page:

https://account.betfair.com/regpay-myac ... mmary.html

Are you saying the figure they have quoted you is different from that?

[Iron]

You would need to earn £60K in a 9-5 job to come home with with £40K.

Unless you happen to be a doctor, a dentist, or one of those professions where there's always plenty of demand for your services and a high salary, our hypothetical person might struggle to match their Betfair earnings (and they probably would need to work longer hours than they do on Betfair).

Jeff

I go back to the example of someone making £100,000 a year, are they really expecting them to carry on with all the sacrifice and risk for just £40,000?