Betfair Help

Turnover Charge

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, Racing NSW and the National Rugby League (NRL) have a product fee approach (the Turnover Model) where every “back bet” attracts a product 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 Turnover Charge is aimed at customer activity which generates large volumes of back bets without providing Betfair with the corresponding revenue to cover the product fees imposed. Therefore, without the Turnover Charge, Betfair would be left with a turnover fee payable to Racing NSW and the NRL but no revenue with which to pay it.

The Turnover Charge is only applicable on NSW thoroughbred markets and NRL markets (turnover charge markets).***

The NRL Turnover Charge will be applicable to markets offered on the following events (NRL Turnover Charge Markets):

• Matches played in the NRL and NRLW Competitions (including finals series);
• Men’s and Women’s State of Origin Matches;
• Test matches played in Australia and New Zealand;
• Test matches and other matches played by the Kangaroos as part of the “Kangaroos UK Tour”;
• All-Stars Match;
• NRL Nines;
• Matches involving NRL Clubs that are not part of the NRL Competition played in Australia or New Zealand or overseas (for example, the World Club Challenge);
• New South Wales Cup and Queensland Cup; and
• Fantasy Football markets.

WHO WILL PAY THE TURNOVER CHARGE?

For NSW Thoroughbred Racing;
This charge will only apply to customers who during a week (Monday to Sunday GMT time) meet all three of the below criteria:

• have matched back bets on 1 or more NSW thoroughbred markets;
• have matched back bets with an aggregate value of $1,000 or greater on NSW thoroughbred markets; and
• the total commission generated by the customer on NSW thoroughbred markets is less than 1.25% 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 the implied commission, calculated by the formula = (commission paid + implied commission) ÷ 2. More information here.

For National Rugby League markets;
This charge will only apply to customers who during a week (Monday to Sunday GMT time) meet all three of the below criteria:

• have matched back bets on 1 or more settled NRL Turnover Charge Markets;
• have matched back bets with an aggregate value of $500 or greater on NRL Turnover Charge Markets; and
• the total commission generated by the customer on NRL Turnover Charge Markets is less than 0.85% 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.

Low yields of total commission as a % of back bet volume manifests when customers have large back bet positions associated with low Net Customer Winning positions, specifically when backing selections at really short odds (<1.15) or trading at small odds gaps (<0.14)

WHAT IS THE CHARGE ON NSW THOROUGHBREDS?

The charge will be 3.0% of the aggregate value of matched back bets on NSW thoroughbred 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: (a) any lay bets; or (b) bets on other racing products (e.g. Victorian thoroughbreds)[DS1] .

HOW DOES THIS DIFFER FROM THE PREVIOUS AND NO LONGER APPLICABLE CRITERIA?

Revised Turnover Charge Criteria (applicable from 5 September 2022)	Previous Criteria (no longer applicable)
a)      Matched back bets placed in 1 or more turnover charge markets	Matched back bets placed in 1 or more turnover charge markets
b)      Matched back bets with an aggregate of AUS $1,000 or greater on turnover charge markets	Matched back bets with an aggregate of AUS $6,000 or greater on turnover charge markets
c)      Total Commission generated on turnover charge markets is less than 1.25% of aggregate matched back bets	Total Commission generated on turnover charge markets is less than 1.25% of aggregate matched back bets
Revised Turnover Charge (applicable from 1 June 2020)	Previous Turnover Charge (no longer applicable)
The turnover charge will be 3.0% of the aggregate value of matched back bets on turnover charge markets.	The turnover charge was 2.4% of the aggregate value of matched back bets on turnover charge markets.

Revised Turnover Charge (applicable from 5 September 2022)	Previous Turnover Charge (no longer applicable)
The turnover charge will be 3.0% of the aggregate value of matched back bets on turnover charge markets.	The turnover charge was 2.4% of the aggregate value of matched back bets on turnover charge markets.

WHAT IS THE CHARGE ON NRL MARKETS?

The charge will be 2.50% of the aggregate value of matched back bets on NRL 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 only be incurred for any week when a customer’s betting activity meets the criteria. Please note that this charge will not be applicable to: (a) any lay bets; or (b) bets on other sports products (e.g. AFL games).

Note: The RNSW Turnover Charge is calculated and incurred separately to the NRL Turnover Charge.

EXAMPLES OF NRL TURNOVER

During a weekly cycle, a customer has matched back bets to an aggregate value of AUS $10,000 on 6 NRL markets. The customer has AUS $50 in Total Commission generated.

CRITERIA	APPLICABLE	ACTIVITY
Matched back bets placed in 1 or more settled NRL Turnover Charge Markets	Yes	6 NRL Turnover Charge Markets
Matched back bets with an aggregate value of AUS $500 or greater on NRL Turnover Charge Markets	Yes	AUS $10,000 of matched back bets on NRL Turnover Charge Markets
Total Commission generated on NRL Turnover Charge Markets is less than 0.85% of aggregate matched back bets	Yes	AUS $50/$10,000 = 0.5%

HOW WILL I BE NOTIFIED IF I AM REQUIRED TO PAY?

Customers will be contacted directly by Betfair 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’ for the first instance they hit Turnover Charge, this is designed to give them an opportunity to refine their betting habits should they wish to do so.

However, if a customer has previously hit Turnover Charge and then hits the revised turnover charge, the charge will be payable and no one week ‘grace period’ will be afforded as this is not the first time the charge has been hit.

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).

RACING NSW RACE FIELDS FEES EXPLAINED

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