Hi
Anybody here an Aussie customer who's paying premium charge on Aussie Racing? I've been told by an account manager after just 'qualifying' for this PC that the calculated commission is (commission paid*implied commission/2), with implied commission being always 3%. While this might be OK for UK racing, this seems inherently unfair on Aussie customers and a quite underhanded way of calculating this in Aus as the MBR is much above 3% for the average Aussie thoroughbred race.
I currently have a 20% discount rate meaning I pay an average of approx 7% in commission, but on the other side they claim the other customers matching bets are paying less than half that. For this reason I've been shown a report which shows that apparently I've had 4x more 'commission paid' than my 'implied commission'.
Has anybody ever queried this with Betfair? I see two options for why implied commission is not addressed differently for Aussie customers. 1) pure ease of admin as the UK look after premium charges and Aussie customers just end up getting stiffed. 2) purposefully choosing to bleed a bit extra from winning Aussie customers as everything costs more in Aus!!
Australian Customers Premium Charge
Betfair Aus pay a hell of a lot more fees to racing than the UK does - especially in NSW
If that wasn't the case I would guess BFAUS would move into line with UK and offer a lower commission rate but since most of the commission earnt by them goes straight to the states, it would make no sense to raise the implied commission.
https://www.google.com/amp/s/www.punter ... te_160151/
If that wasn't the case I would guess BFAUS would move into line with UK and offer a lower commission rate but since most of the commission earnt by them goes straight to the states, it would make no sense to raise the implied commission.
https://www.google.com/amp/s/www.punter ... te_160151/
That's basically what I'm getting at @Naffman. 'Implied commission' of 3% is in line with UK customers and UK Racing, but Aus Racing commission rates on races are much higher.
From Betfair:
Commission generated = (Commission + Implied Commission) ÷ 2
where
Implied Commission = market losses x 3%
We divide by 2 because otherwise we’d be counting each pound of commission twice.
From Betfair:
Commission generated = (Commission + Implied Commission) ÷ 2
where
Implied Commission = market losses x 3%
We divide by 2 because otherwise we’d be counting each pound of commission twice.
It's not Aussie customers but people anywhere in the world who trade Aussie racing that pay the high commission. The assumption that 3% is paid on your losses does sound like a rip-off to me. I don't know what the average commission rate is but I'd be surprised if it's as low as 3%, at least before the 2% offer. And when you're trading NSW it's not possible to pay 3% because the maximum discount is 60%.
It would be much, much fairer if commission on losses was assumed to be equal to the commission-rate of the winner.
It would be much, much fairer if commission on losses was assumed to be equal to the commission-rate of the winner.
It’s absolutely not fair but I would be very interested in finding out if any Aus customers who only bet Aus Racing have raised this with the Aus business. Like I say, they have claimed that my implied commission is only approx 25% of my actual commission paid, which makes my ‘commission generated’ a fair clip lower when calculating premium charge, in turn artificially increasing the amount I have to pay to reach 20%
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spreadbetting
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For most traders the implied commission rate has very little overall effect because in general we have very losing markets and rarely any of any large value. The kick in the teeth is that they only give you half comms on the winning markets towards the calculation.
How does it work if you're a trader and most always greening up?
Let's say theoretically speaking your total commission paid was $5,000 over 500 markets and you made a profit every single time.
Would implied commission be $0?
If so, would your 'commission generated' towards premium charge be calculated ($5000+$0/2) = $2500?
Let's say theoretically speaking your total commission paid was $5,000 over 500 markets and you made a profit every single time.
Would implied commission be $0?
If so, would your 'commission generated' towards premium charge be calculated ($5000+$0/2) = $2500?
Yes, I'm afraid so. I'm not too concerned about the odd percent. I just wish Betfair would be honest and advertise PC as 20-22.5% of weekly profits, instead of claiming that you get charged 20%.doncastro wrote: ↑Mon Dec 02, 2019 1:26 amHow does it work if you're a trader and most always greening up?
Let's say theoretically speaking your total commission paid was $5,000 over 500 markets and you made a profit every single time.
Would implied commission be $0?
If so, would your 'commission generated' towards premium charge be calculated ($5000+$0/2) = $2500?