Media Release: Betfair Responds to a 33% Price Increase By Racing New South Wales

In mid-May, Racing New South Wales (RNSW) notified Betfair that from July there would be a 33% increase in the fees paid for Standard Meetings.

 

From July, 56% of any revenue generated by Betfair on NSW thoroughbreds will be paid to RNSW. This is before any taxes and operating costs to offer and market this product are paid.

 

The increase by RNSW means that even a standard mid-week NSW thoroughbred meeting would now be 51% more expensive than the Melbourne Cup. Across all meeting types, RNSW is now the most expensive product for Betfair to offer in the world.

 

To respond to this increase Betfair will make a significant change to how it charges commission on thoroughbred racing markets in NSW.

 

Betfair prides itself in welcoming winners, giving customers exceptional value and offering the unique ability to trade on the world’s leading betting exchange. Unfortunately, the increase in fees from RNSW has resulted in us having to increase the maximum percentage Betfair customers pay in commission on winnings from 8% to 10%.

 

Further, because the RNSW fee mechanic is based on back bet turnover which attracts a considerable fee impost where frequent trading occurs, the Turnover Charge threshold will be lowered for RNSW events.

 

Given these changes, we have forecast a downturn of RNSW turnover in excess of 18% from the previous year. This is a disappointing result for Betfair, RNSW and industry participants.

 

It is important to note that other thoroughbred racing jurisdictions, such as Racing Victoria and Racing Queensland continue to enjoy the lowest commission rate of 6%. A Turnover Charge will not be applicable to any racing codes outside of NSW thoroughbreds.

 

Betfair understands that customers will be disappointed by the pricing changes. However, you can rest assured that we will redouble our efforts to provide a sustainable pricing structure to enable benefits to be returned to all wagering participants.

 

QUOTES ATTRIBUTABLE TO TIM MOORE-BARTON, CEO OF BETFAIR

“The commission increase and Turnover Charge changes on NSW thoroughbred racing has not been a decision that Betfair has taken lightly. However, such is the magnitude of the uplift in fees it was unfortunately the only course of action available to us.”

 

“Betfair has never refused to pay product fees to Australian racing codes and we are proud of our contributions to the Australian racing industry. This includes over $20 million to RNSW over the last five years.”

 

“However, there needs to be a balance between contributions to industry and ensuring that punters receive value for money. If this is not achieved, punters will continue to shift their wagering dollar to offshore betting operators, who pay no race field fees and are an integrity blind spot for racing stewards.”