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I just recieved an eMail from Betfair. They’re changing their comission points structure.
Have a look at:<br>http://promo.betfair.com/news/pc/temp_wv_pc.html
A brief examination reveals that the punter doesn’t get much out of the changes. It seems that Betfair are taking advantage of their near monopoly.
Hi Malc,
Added the same before I saw your post…….makes me sick the way they treat people.:angry:
I’d say the punter gets categorically shafted under the new system to be honest!
sportsnapper, Betfair do have some competition, and I believe BetDaq is the main rival, but they have nowhere near the exposure.<br>The problem with exchanges is that most people are on BF, hence the most layers are on BF, and hence the best prices are on BF, and there is very little that other exchange operators can do about that, as they don’t set their prices. Also, they probably couldn’t cope on smaller commission as their lack of customers means their profit margins are slim compared to BF regardless. I’m afraid with the nature of the game it just looks like a vicious circle.<br>
(Edited by Friggo at 4:54 pm on May 23, 2007)
Indeed. Sporting Options tried to get out of this circle by seeding the markets. And came horribly unstuck.
Betfair did this at the start and got away with it. So without any form of seeding it is going to be nigh on impossible to get a new exchange to take off.
We need a "Roman" with endless amounts of money to sort Betfair and there bully boy tactics out. :cool:
i really don’t see the problem here – betfair is good for laying and good for longer prices but if anyone thinks they can get better value elsewhere why are they playing on betfair ?
surely if it becomes less value than elsewhere you will play elsewhere – if it’s better value there, what the ****
are you moaning about ?:o
Instead of seeding markets with their own money, why don’t they try to pay market makers like they do in the Finance world.
A contract is set up between the two parties where an agreement is made that the market marker will supply a certain level of volume, at a certain maximum overround and a certain maximum bid-ask (or back/lay) spread for a specified period of time.
The benefit to the exchange is that they get seeded and managed markets. They could even set up a tender process to determine the most suitable market maker.
The market maker gets paid a certain amount which he hopes will offset any loss by being hit by "smart" punters, plus he can benefit from the overround.
How expensive this would be for the exchange I don’t know but it seems pretty clear that Betfair is making ever increasing fortunes off their customers.
A betting exchange that employs bookmakers in a way…
(Edited by RobinFromIreland at 5:41 pm on May 23, 2007)
They would get slaughtered by the shrewdies Robin.
This commission change is a little weird really, it won’t affect me (no discount) but will affect the punters further up the food chain. As the higher up the food chain types that provide the liquidity and make the site function properly, you would think they would be looking after them and not try to fiddle them out of their ill-gotten gains.
<br>Would seem to be a change in line with their marketing – 20% higher charges to balance the mythical 20% higher prices.
Why am I left with the feeling that as a non-trading online player, I’m paying for the load imposed on their systen by the traders and Bot users, not to mention the telephone service, the new radio rubbish, Kauto Star’s bonus etc etc.
AP
There is a small transaction charge already: 1p per bet for each bet over 1000 bets a day IIRC
If you don’t like it don’t use betfair – simple :biggrin:
I don’t so it doesn’t affect me!
Do these changes add credence to the rumours Betfair are negotiating the take over of Betdaq?
It would seem they’re confident they’ll hang onto their ‘bread and butter’ 10-15-20% discount punters despite them being hit with a near doubling of the commission points now needed to qualify for those increments.
TDK,
I would say no. The original commission scheme was designed to deal with the specific problems facing Betfair in late 2000/early 2001. Namely, a need to establish liquidity in a company just finding its feet and a need to fend off an aggressive and much better bankrolled competitor (Flutter).
Thus they instituted net commission per event to attract market makers and a sliding scale to be competitive with flutter (then 2.5%) for the bigger players without getting into a full scale price war.
Since then only the odd tweak has been made to the scheme. I’d say the worst thing about it is that fresh blood, which we all want to attract, is charged the highest price. Moreover, these 4/5% players are the ones with real choice where to bet. The 2/3%ers often find getting on elsewhere a major problem.
I still think there should be something in the design to attract real market makers (by which I don’t mean ‘now you see it now you don’t’ bots) without the current by product of letting off in and out traders virtually scot free.
(Edited by Glenn at 9:06 pm on May 23, 2007)
Those bemoaning the new commissions charges at Betfair (first Know Your Customer, now it`s Shaft Your Customer) will be delighted that in a Gordon Brown style sleight of hand they`ve decided to double the commission points earned at Newmarket today.
I can barely contain myself.
WBX on Monday put out “an open invitation to all disenfranchised exchange usersâ€ÂÂ
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