To run a healthy and vibrant exchange turnover is critical, and to foster turnover we need to offer customers attractive commission rates. While many racing and sporting bodies understand the importance of a vibrant betting exchange in providing customers and the market confidence in “the true odds”, and as an essential tool in fighting corruption in racing and sport, in some jurisdictions our arguments have not been acknowledged.
In 2015 Betfair introduced variable Market Base Rates (MBR) to allow for different product fee models. The MBR represents the highest commission that Betfair receive for winnings on particular markets. Upon launch, the commission ranged from 5% to 8% of a customer’s winnings. Since launching variable MBRs we have been able to successfully negotiate product fee reductions in key states and territories and as a result have reduced the MBR where possible.
Unfortunately RNSW have never engaged in constructive conversation with us. The latest fee increase was delivered to us without consultation and as a result we are forced to introduce pricing changes impacting both us and our customers. These changes don’t sit well with us, but are designed to help us achieve our objective of keeping the commission to our customers as low as possible in the long term.