# Betfair Help

## 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 5 September 2022.

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

### EXAMPLE MENANGLE R1

Shock The Doc Wins

• 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

• 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

• 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 Commission 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 (2.5% of Total Back Bet Volume) = \$40.00. (2.5% x \$1,600)

### A GUIDE TO WHAT ACTIVITY GENERATES LOW TOTAL COMMISSION YIELDS AS A % OF BACK BET VOLUME

Backing Runners At Short Odds

Trading on Runners At Specific Odds Gaps

Want to get answers to your questions?

Go To Betfair FAQs