Deductions are just another issue that have become a matter of debate for punters in recent years.
Of concern for most is the varying deduction rates that the applied by different bookies. It’s not legislated – each bookie can apply whichever rate they like.
They do all publish their rates in their betting rules however, so it’s not a mystery to anybody. We thought we’d compare them, so looked at some major Australian bookmakers: Bet365, BetEasy, Sportsbet, TopSport, TAB and Ladbrokes.
Deduction schedules are lengthy, spelling out the rate to be applied at virtually every possible price point. If you’re keen to see the lot, check out the full table here. Otherwise, here’s a summary:
There are some decent differences across the board. TAB deductions are the highest right down the prices, along with BetEasy who follow the same schedule, apart from cutting out earlier..
At the lower prices, Sportsbet and Ladbrokes are the most generous options, generally deducting less than their rivals. Bet365’s cut out the earliest, with no deductions for any scratched horse above $12. TAB are still deducting at $51!
Don’t know deductions?
When a horse is scratched from a race, bookies refund the money that’s been staked on it.
Depending on how short in the market the scratched horse is, it can have a major impact on the shape of the market. To re-shape the market without the scratched horse and pay out the refunds on it, bookies deduct an amount from the payout of each winning ticket.
The shorter the horse is in the market, the more market percentage it accounts for, and thus the more is deducted from winning bets.
The deduction rate (such as those above) is the cents in the dollar that is deducted from a winning ticket.
- You have a $100 bet on a horse at $4 with Ladbrokes
- A $5 chance is scratched
- Your horse goes on to win
The pre-scratching value of your winning bet is $400 ($100 stake x $4 dividend).
As per the above table, Ladbrokes’ deduction for the $5 scratched horse is 13 cents in the dollar.
Applied to your $400 winning bet, your deduction is $52.
Rather than receiving $400, you receive the net amount of $348.
For a comparison, TAB deduct 19 cents for a $5 scratching. So if you’d bet with TAB, your deduction is $76, and you receive a payout of $324.
As you can see, it can be make a decent difference in your payout, depending on the price point we’re talking about. Of course, there’s no way of predicting when a scratching will take place – especially a late scratching – so it’s very hard to know whether to take it into account.
If you’re using a number of different bookmaker accounts, obviously you’ll still choose the best price available. Within that though, when multiple bookies have the same price (as is often the case these days), the deduction schedule could well be a factor is deciding where to bet when all else is equal.
Rod’s High Low takes advantage of the bookies at every opportunity they present.
With over $100,000 profit in less than 4 years, it’s a no-brainer for any punter.