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The reality is though that Betfair has such a big lead in terms of liquidity that the likelyhood of mass defections is small- people will just have to suck this up as the alternatives are not viable at present. If I were Dermot Desmond I’d go 0% commission for the next 6 months immediately to make a huge effort to increase liquidity- once the money is there you can start increasing your commission charges-liquidity is everything.
The amount of money hedged through Betfair by other firms/organisations could very quickly dry up as it will now not be worth their while.
[b:3g1zhi2q]I disagree as firms looking to hedge will be more likely to be predominantly backers on Betfair and therefore the Premium charges shouldn’t really affect them.[/[/b:3g1zhi2q]quote]
Why wouldn’t it affect them?!?!?
Of course it will. It could stop them altogether!!
Sorry to be a pedant but (500+240)/2 equals £370 Dave.
Whoops
– you can see why I’m not paying it anyway!Nonetheless, a Premium Charge of £30 on £2,000 profit is hardly going to break anyones bank
Why wouldn’t it affect them?!?!?
Of course it will. It could stop them altogether!!
Because it’s mostly traders who will be affected and as the bookmakers are doing one side (the laying) of their "trade" outside of Betfair they are effectively backers on the Exchange so the extra charge shouldn’t affect them all that much.
Nonetheless, a Premium Charge of £30 on £2,000 profit is hardly going to break anyones bank
I think you might be missing the trick here .. the Premium Tax is charged every week, once you go over the threshold, until you come back under it in the 60 week rolling year.
So your mate might have a seven figure profit and not have used up his £1000 allowance but he could crop for a huge liabilty next week, or the week after. He should be asking what his additional liabilty will be over the next 12 months if his account performs exactly the same as it did over the last 12 months.
I understand implied commission is what the layers/market rate is on the market you are matched on. You obviously can’t know that until betfair tell you, what’s the odds you always get the worst case for calculating how much you owe?
Why wouldn’t it affect them?!?!?
Of course it will. It could stop them altogether!!
Because it’s mostly traders who will be affected and as the bookmakers are doing one side (the laying) of their "trade" outside of Betfair they are effectively backers on the Exchange so the extra charge shouldn’t affect them all that much.
How do you work that out?
Everyone who make £1000 profit after deductions will be liable, according to the announcement. Am I reading one thing and you something else?
A lot of figures being bandied about on this thread and a lot of supposition about just who will be eligible to pay the surcharge
Your total charges paid are less than 20% of gross profits
I suggest that over a 60 week period this will be the determining factor that renders the vast majority of (winning) Betfairies ineligible
Quite an eye opener it is too, so why not calculate yours and then reflect on rather ill-thought sweeping statements such as:
Anyone who isn’t affected by this should seriously think of giving the game up and getting involved in something else.
dave – anyone who has made £1,000 profit over 250 markets will more than likely have paid more than £200 in both commission and implied commission to earn that £1,000 – therefore this will mean that the Premium Charge doesn’t affect them.
It’s not just a 20% charge on profits
so why not calculate yours and then reflect on rather ill-thought sweeping statements such as:
Anyone who isn’t affected by this should seriously think of giving the game up and getting involved in something else.
.. maybe I have and it’s quite well thought out. If I had known this tax was coming 60 weeks ago I might have thought it out even weller?
– you can see why I’m not paying it anyway!
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