NRL Turnover Charge

Author

Betfair

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 or start of the game and then in-play.

Unfortunately, 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 NRL 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 this Turnover Charge, Betfair would be left with a product fee payable to the NRL but no revenue with which to pay it.

On and from 21 September 2020, Betfair is implementing a Turnover Charge on NRL markets and certain other rugby league events, this is aimed at addressing the ongoing issue outlined above

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?

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 NRL Turnover Charge Markets;
  • have matched back bets with an aggregate value of $1,000 or greater on NRL Turnover Charge Markets; and
  • the total commission generated by the customer on NRL Turnover Charge Markets is less than 0.65% 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?

The charge will be 2.00% 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 THE NRL TURNOVER CHARGE

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 NRL Turnover Charge Markets Yes 6 NRL Turnover Charge Markets
Matched back bets with an aggregate value of AUS $1,000 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 0.65% 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 by Betfair (either by phone or email) and informed on the first occasion on which this NRL 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.

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) or email service@betfair.com.au.