Turnover Charge

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 and then in-play.

Unfortunately, Racing NSW have a race field fee approach (the Turnover Model) where every “back bet” attracts a race field 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 Turnover Charge is aimed at customer activity which generates large volumes of back bets without providing Betfair with the corresponding revenue to cover the race field fees imposed. Therefore, without the Turnover Charge, Betfair would be left with a turnover fee payable to Racing NSW but no revenue with which to pay it.

On and from 1 June 2020, Betfair is changing the criteria for the Turnover Charge and the way that it is calculated, this is aimed at addressing the ongoing issue outlined above and to align the Turnover Charge with the race field fees that are imposed by Racing NSW.

The Turnover Charge is only applicable on NSW thoroughbred markets (turnover charge 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 NSW thoroughbred markets;
  • have matched back bets with an aggregate value of $6,000 or greater on NSW thoroughbred markets; and
  • the total commission generated by the customer on NSW thoroughbred markets is less than 1.25% 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 the implied commission, calculated by the formula = (commission paid + implied commission) ÷ 2. More information here.

What is the Charge?

The charge will be 2.4% of the aggregate value of matched back bets on NSW thoroughbred 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 the charge will not be applicable to: (a) any lay bets; or (b) bets on products other than NSW thoroughbreds.

HOW DOES THIS DIFFER FROM THE PREVIOUS AND NO LONGER APPLICABLE CRITERIA?

Revised Turnover Charge Criteria (applicable from 1 June 2020) Previous Criteria (no longer applicable)
a)      Matched back bets placed in 1 or more turnover charge markets Matched back bets placed in 25 or more turnover charge markets
b)      Matched back bets with an aggregate of AUS $6,000 or greater on turnover charge markets Matched back bets with an aggregate of AUS $2,000 or greater on turnover charge markets
c)      Total Commission generated on turnover charge markets is less than 1.25% of aggregate matched back bets Total Commission generated on turnover charge markets is less than 1.5% of aggregate matched back bets
Revised Turnover Charge (applicable from 1 June 2020) Previous Turnover Charge (no longer applicable)
The turnover charge will be 2.4% of the aggregate value of matched back bets on turnover charge markets. The turnover charge was 1.2% of the aggregate value of matched back bets on turnover charge markets.

Revised Turnover Charge (applicable from 1 June 2020) Previous Turnover Charge (no longer applicable)
The turnover charge will be 2.4% of the aggregate value of matched back bets on turnover charge markets. The turnover charge was 1.2% of the aggregate value of matched back bets on turnover charge markets.

How will I be notified if I am required to pay?

Customers will be contacted directly by Betfair and informed on the first occasion on which this 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.

However, if a customer has previously hit Turnover Charge and then hits the revised turnover charge, the charge will be payable and no one week ‘grace period’ will be afforded as this is not the first time the charge has been hit.

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).

RACING NSW RACE FIELDS FEES EXPLAINED