Turnover charge was introduced to ensure Betfair could continue to operate viably on markets where it is levied fees based on turnover.
Turnover charge is aimed at customer activity which generates large volumes of back bets without providing Betfair with the corresponding revenue to cover the charges accrued. Therefore without the charge, Betfair would be left with a turnover fee payable to racing bodies but no revenue with which to pay it.
The charge is only applied on those markets which Betfair is levied fees based on back bet turnover as defined as the aggregate of bets on the ‘backer’s side’ of the exchange.
It’s applied to customer in exactly the same way as the racing bodies are charging Betfair, however at a smaller rate. Therefore Betfair continues to absorb a portion of the fee it is being required to pay.
Where does the Turnover Charge apply?
The Turnover Charge applies in the following markets:
|ACT||Harness and Greyhound Racing|
|NSW||Thoroughbred and Harness Racing|
Who will pay the turnover charge?
This charge will only apply to customers who during a week meet all three of the below criteria:
- have matched back bets on 1000 or more markets which Betfair is subject to a turnover fee from a racing body (‘turnover charge markets’);
- have matched back bets with an aggregate value of $2000 or greater on turnover charge markets; and
- the total commission generated by the customer on turnover charge markets is less than 1.5% of the aggregate value of matched back bets placed by the customer on those markets.
Total commission generated is half of the commission paid plus half of implied commission, calculated by the
formula = (commission paid + implied commission) ÷ 2.
Implied commission is 3% of player losses where players make an overall loss on a single market.
What is the Charge?
The turnover charge will be 1.2% of the aggregate value of matched back bets on turnover charge markets.
The charge will be calculated for the period from each Monday to Sunday (GMT), and will be payable on a retrospective basis. The charge will be debited from a customer’s UK wallet each Wednesday, alongside any applicable premium charge.
The charge will only be incurred for any week when a customer’s betting activity meets the criteria. Please note the charge will not be applicable to any lay bets.
How will I be notified if I am required to pay the turnover charge?
Customers will be contacted directly by a Betfair representative and informed on the first occasion on which this turnover charge would have been payable.
Customers will also be afforded a one-week ‘grace period’ designed to give them an opportunity to refine their betting habits should they wish to do so.
A summary report of an individual’s weekly activity will also be available if requested.
Betfair remains committed to working with racing authorities to be able to remove the Turnover Charge on these markets.
Customers seeking further information can call the Aus Betfair helpdesk on 1300 238 324 (9am – 7pm AEST).