Caulfield Cup Day: 0% Commission Review

Last Saturday, October 17th, we were thrilled to work with Racing Victoria to try something the industry hadn’t seen before.

We made the entire meeting, with all markets, commission free for Betfair Customers.

An entire race meeting with no margin. Pure 100% markets for the Caulfield Cup. All ten races.

It was incredibly well received and we hope we can provide a few answers as to why we decided to do this.

Why did we make the Caulfield meeting commission free?

Our markets are already renowned as the fairest in the industry, with the lowest take out rates, but we wanted to offer punters something new to celebrate the Caulfield Cup.

Plus, we wanted to prove customers are price sensitive and price matters.

We’ve done small commission-free trials before and wanted to expand it to a whole, meaningful meeting.

There’s a big difference between going to the casino and playing roulette with one zero on the table, compared to two.

Well, what if we offered no zero while corporate bookmakers have a handful of them on the table?

100% over round at the jump vs 112-140%.

Why are you so eager to work with Racing Victoria?

Betfair is happy to pay race field fees and support the racing industry. We love working with racing bodies who want to create partnerships to grow all levels of participation in the sport.

And customers weren’t the only ones to benefit from the initiative.

Racing Victoria saw:

  • 95% growth Year on Year (YoY) at Bendigo
  • 210% growth YoY at Avoca

What were the key numbers?

Across the entire meeting for all markets, including place and H2H markets, $18.4 million was traded on Caulfield.

That makes it the fourth most popular racing meeting we’ve ever offered. This is bettered only by the last three Melbourne cups at Flemington.

Caulfield Meeting

Turnover up +84% YoY
Actives up 39% YoY

Randwick Meeting

Turnover +12% YoY
Actives remained roughly the same YoY

Caulfield Cup

Turnover +78% YoY
Actives +50% YoY

The Everest

Turnover -6% YoY
Actives +18% YoY

What have we learned?

It’s clear what this tells us about punters and customers.

They are price sensitive.

When Betfair has tight over rounds on race day and the market depth has plenty of liquidity, the whole industry benefits.

You need all wagering options priced properly to grow the ecosystem.