One of the unique benefits of the Betfair Exchange is the ability for customers to trade in and out (back and lay) as prices on a market fluctuate in the build up to the jump and then in-play.
Unfortunately, RNSW have a race field fee approach (the Turnover Model) where every “back bet” attracts a race field fee, even if a customer is trading and therefore generating very high levels of back bet volume relative to their eventual net customer winning position.
The Racing NSW 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 NSW but no revenue with which to pay it.
Who will pay the Racing NSW 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 25 or more RNSW markets;
- have matched back bets with an aggregate value of $2000 or greater on RNSW markets; and
- the total commission generated by the customer on RNSW 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. More information here.
What is the Charge?
The charge will be 1.2% of the aggregate value of matched back bets on RNSW 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 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?
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.
Customers seeking further information can call 1300 238 324 (9am – 7pm AEST).