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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
| 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 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
| 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% |
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