New Betfair commission rates

[andyfuller]

I suspect Mugs idea of increasing commission to replace PC, is not a million miles away from BF's thoughts

Seems like it isn't a million miles away, more like 10 million miles away

Any chance of the PC being ditched seems to have never crossed their mind, they have highlighted quite a few times in the slides the fact that Australia has highlighted an opportunity to 'improve exchange monetisation'.

http://corporate.betfair.com/~/media/Fi ... tation.pdf

Just finished listening the Betfair results presentation

Peter - is there likely to be a recording of the presentation as I unfortunately missed it?

[Wainwright]

Doesn't appear to be a recording of the presentation, but additional "Trading Update" available here;

http://corporate.betfair.com/investor-r ... entre.aspx

I missed the beginning of the presentation but listened to most of it & took away these points;

* Aiming to add "cash out" plus "best price" to the sportsbook, both being achieved using the exchange
* Aiming to unify exchange & sportsbook such that there will ultimately be no differentiation between the two
* Expected that traditional exchange users would appreciate additional sportsbook volume being directed to the exchange
* New API in beta test

When asked about PC in the context of the current commission experimentation it was stated that there were "no sacred cows", but didn't go into any further detail.

[LinusP]

* Expected that traditional exchange users would appreciate additional sportsbook volume being directed to the exchange

Traditional?? What happened to the exchange being the future?

[Wainwright]

To be fair, that was my word - that future seems such a long time ago now !!

[giulio2010]

This one account is registred in UK, betfair increased the commission from 4,69% or lower to 6,25% and without warning!!

[Gambel]

@giulio2010: maybe it's a rounding problem. When you are paying commission on very small profits, this can happen.

[giulio2010]

@giulio2010: maybe it's a rounding problem. When you are paying commission on very small profits, this can happen.

It's a friend of mine that sent me that pic...I will ask him what stakes he is using..However he said he has been 6.25% on average now...I will ask him more details..thanks

[bobalski]

Was it a bet on an Australian horse race? Base rate is 6.5%

[Euler]

From Betfair results today

In May 2013, we changed the base level of commission from the standard 5% to between 4% and 7.5% in five countries and have recently extended these trials to a further 18 countries. This will provide a better understanding of the effect of different pricing structures on the Exchange ecosystem and revenues.

[andyfuller]

Does any one know about the rebates that they say they are doing?

[andyfuller]

Interesting comments about the Premium Charge - that they would love to change it 'if they can' but would comment on it further.

He didn't sound too convincing so I won't hold my breath!

[Euler]

Bit late though? So many people have quit at the PC end of the market, the most valuable to BF anyhow and it will take a lot to get them back. They don't seem to be sending +ve messages to them so surprised to hear those comments.

[Euler]

Comments on the premium charge

http://youtu.be/4kCfXI4DgnQ?t=39m22s

[kelpie]

Euler> out of interest, do you have a feeling where the PC Exiles are heading?

I hear the same stories about this group getting hacked off but wonder where long term Betfairers head off to. Doesn't look to be a flight to betdaq, not yet anyway. Binary options or back to the rip-off bookies? Or, perish the thought, regular jobs?

[kelpie]

Euler> Interesting betfair Q&A link. Thanks.

All> Interesting snippet on the back end of that Q&A session. Betfair's dividend target is framed around 12p/pound, ultimately anyway.

As a very quick back of the envelope calculation, only half that can come from regular betfair commissions. The 5% traditional + the premiums in select markets. The premium charge must fund half their dividend levy - and that's massive. Don't expect PC to disappear anytime soon...