Gambling giant Betfair has struck an 11th hour deal with the NRL to allow punters to bet against each other for the season reboot, but not before forecasting turnover will drop due to its commission being “four times more expensive than the AFL”.
Having refused to sign an integrity agreement with the NRL before the opening two rounds in protest at increased product fees, Betfair announced on Monday night it had finally reached agreement with the code.
A number of other bookmakers reluctantly signed deals in order for them to offer wagering on NRL matches before the start of the season, which was ultimately suspended after the second round due to COVID-19.
Betfair said it will lift its market base rate from six per cent last year to 10 per cent this year, stressing its take out on AFL matches in 2020 would only be 2.5 per cent.
“We applaud the NRL for the incredible work that has gone on during lockdown to secure the NRL’s future and to bring the season back to its fans at the earliest moment possible,” Betfair Australia chief executive Tim Moore-Barton said.
“Unfortunately, their product fee model singles out high volume, low margin operators such as a betting exchange.
“If we kept the commission we charge customers flat on last year we would now be paying over two thirds of our revenue in product fees – and that’s before other operating costs and taxes (including point of consumption tax) – therefore we have made the difficult decision to increase our commission on NRL to 10 per cent.
“The Betfair exchange appeals to customers that want better odds, that want to trade and to winners that can’t get on with fixed odds bookies – and unfortunately when we are forced to increase our commission rates turnover from these customers drops, or stops completely, which is no good for punters, for Betfair or for the NRL.”
The code has already implemented a super tax on bookmakers to offer betting on all finals and Origin matches, some of the biggest wagering events in Australia.
Betfair insiders argue the NRL will be the most expensive product they offer globally.
“In comparison customers should be aware that our MBR on the 2020 AFL season is 2.5 per cent,” the company said in a statement. “The NRL will be four times more expensive.”
V’landys has been at odds with Betfair for years over the gambling taxes levied on the exchange by Racing NSW, which took the international giant all the way to the High Court in the protracted race fields fees case it won to secure the financial platform for the industry.
https://skugal.org/four-times-more-expensive-than-afl-betfair-nrl-strike-11th-hour-deal/
Interested in China v Taiwan ,think that's where the next sh*t will hit the fan.
