As requested from the other thread and a couple of others, an explanation: -
Full details of all Betfair charges are located here: -
http://www.betfair.com/aboutUs/Betfair.Charges/
A summary: -
You’ll only be considered for the Premium Charge if your account is in profit and only if the total charges generated since joining Betfair are less than 20% of your gross profits. You also need to bet in more than 250 markets.
Two conditions reduce the likelihood that you will be required to pay the Premium Charge:
Any single win that constitutes more than 50% of your gross profits over the lifetime of your account will be excluded from the calculation; and Each customer will have a lifetime allowance of £1,000 against the Premium Charge.
Most profitable traders will pay the lower rate of premium charge.
Higher rates of premium charge
Higher rates apply if: -
Lifetime net profits*** exceed £250,000
Commission generated less than 40% of lifetime gross profits
You Bet in more than 1,000 markets
The rates vary from 40 to 60% depending on your lifetime commission generated.
< 5% = 60%, 5% - 10% = 50%, 10%+ 40%
Betfair premium charge explained
This is so lame.
If only USA legislated online gambling, I am pretty sure betfair would run out of business by some new-born company.
Or if Betdaq/Smarkets/WBX can manage and market themself better, to create some serious rivality at least. It seems like BF has the monopoly and does whatever it wants, since most traders need BF, like BF needs their traders.
But this is too greedy!
If only USA legislated online gambling, I am pretty sure betfair would run out of business by some new-born company.
Or if Betdaq/Smarkets/WBX can manage and market themself better, to create some serious rivality at least. It seems like BF has the monopoly and does whatever it wants, since most traders need BF, like BF needs their traders.
But this is too greedy!
