Turnover Charge on NSW Harness Examples

Betfair has announced that they will be increasing the Market Base Rate (MBR) for New South Wales (NSW) harness racing markets to 10%. In addition, a Turnover Charge will be introduced for customers that meet certain criteria on Harness Racing NSW Markets. These changes will come into effect on 1 August 2021.

For more on why we’ve had to introduce this charge, check out this article.


Example Menangle R1

Shock The Doc Wins

Selection Bid Type Volume Odds Winnings
Shock the Doc Back $100.00 1.02 $2.00
Shock the Doc Back $100.00 1.03 $3.00
Shock the Doc Back $600.00 1.01 $6.00
Raiders Shan Lay $10.00 6 $10.00
  • Total Back Bet Volume: $800
  • Total Winnings: $21
  • Commission Paid (10% MBR x Winnings): $2.10
  • Implied commission ($0 x 3%) [No net loss on the market]: Nil

Example Menangle R2

Rooster Crow Wins

Selection Bid Type Volume Odds Winnings
Busby Lay $10.00 1.7 $10.00
Rooster Crow Back $200.00 2 $200.00
Busby Lay $10.00 1.5 $10.00
Busby Lay $10.00 2.5 $10.00
  • Total Back Bet Volume: $200
  • Total Winnings: $230
  • Commission Paid (10% MBR x Winnings): $23
  • Implied commission ($0 x 3%) [No net loss on the market]: Nil

Example Menangle R3

Thunder Bender Wins

Selection Bid Type Volume Odds Winnings
Thunder Bender Back $400.00 1.05 $20.00
Panther baby Lay $50.00 2.45 $50.00
Titans rock Back $200.00 1.2 -$200.00
Titans rock Lay $100.00 2.5 $100.00
  • Total Back Bet Volume: $600
  • Total Winnings: -$30
  • Commission Paid (10% MBR x Winnings): $Nil
  • Implied commission ($30 x 3%) [Net loss on the market of $30]: $0.90

Total Comission Generated = (commission paid + implied commission)/2

AN AGGREGATE VIEW ON THE MARKETS ABOVE

  • Total commission paid = $25.10 (R1= $2.50, R2= $23, R3= $0)
  • Total implied commission = $0.90 (R1= $0, R2= $0, R3= $0.90)
  • Total Commission Generated = Total Commission Paid + Implied Commission) ÷ 2 = $26/2= $13 (divided by 2 to proportion the commission between winning and losing bets)
  • Total Back Bet Volume= $1600 (R1= $800, R2= $200, R3= $600)
  • Total commission Generated as a % of Back Bet Volume= $13/$1,600  = 0.81%
  • Under the 1.00% threshold for Turnover Charges, therefore the Harness Racing NSW Turnover Charge would be payable.)
  • Turnover Charge Payable (1.8% of Total Back Bet Volume) = $28.80. (1.80% x $1,600)

A guide to what activity generates low total commission yields as a % of Back Bet Volume

Backing Runners At Short Odds

Odds Total Yield Gen (Paid + Implied) All win
1.01 0.05%
1.02 0.10%
1.03 0.15%
1.04 0.20%
1.05 0.25%
1.06 0.30%
1.07 0.35%
1.08 0.40%
1.09 0.45%
1.1 0.50%
1.11 0.55%
1.12 0.60%
1.13 0.65%
1.14 0.70%
1.15 0.75%
1.16 0.80%
1.17 0.85%
1.18 0.90%
1.19 0.95%
1.2 1.00%
1.21 1.05%
1.22 1.10%
1.23 1.15%
1.24 1.20%
1.25 1.25%

Trading on Runners At Specific Odds Gaps

Odds Gap Total Yield Gen (Paid + Implied)
0.02 0.10%
0.04 0.20%
0.06 0.30%
0.08 0.40%
0.1 0.50%
0.12 0.60%
0.14 0.70%
0.16 0.80%
0.18 0.90%
0.2 1.00%
0.22 1.10%
0.24 1.20%
0.26 1.30%
0.28 1.40%
0.3 1.50%
0.32 1.60%
0.34 1.70%
0.36 1.80%
0.38 1.90%
0.4 2.00%
0.42 2.10%
0.44 2.20%
0.46 2.30%
0.48 2.40%