Your Guide To The Betfair Exchange
As you know by now, Betfair isn’t a bookmaker and doesn’t take bets: it’s an exchange which facilitates bets between punters.
It’s not a community service though… they get a cut too!
Betfair Commission: Market Base Rate
Betfair’s own revenue comes in the form of commission, which is charged on winning bets. Each market has a base rate: this is a percentage which is deducted from any profit on winning bets.
An important point to remember is that although commission on your profits may seem like an additional cost that only applies to Betfair, in reality you pay commission on your bets with any bookmaker: they just build their cut into your price.
When a market is settled, any winnings accrue to your Betfair account, and commission on those winnings is deducted.
There is no commission payable on losing bets: as Betfair is a betting exchange, each bet has a winner and a loser on either side of the wager. The winner pays the commission.
The vast majority of Betfair markets worldwide – sports and international racing – have a 5% market base rate. Australian thoroughbred racing is higher (lucky us…), as a result of the higher product fees which racing authorities charge Betfair to operate.
You can get the current market base rates for all Australian racing markets from Betfair, right here.
If you’re ever unsure and want to confirm the base rate on any market, just check the market rules.
Betfair Commission: Discounts
Betfair have a loyalty program of sorts which allows you to receive a discount on the commission you’re paying.
Basically, every time you have a bet on Betfair, you accrue ‘Betfair Points’. The more points you have, the higher your commission discount. You receive Betfair points every time you bet, but your accrued points balance declines over time. In effect, the points system rewards those who bet continually.
Based on how many points you have, you’ll receive a discount on any bet you have. The discount rate applies to all markets you bet in – it’s just deducted from the market base rate.
Betfair Commission: Other Charges
Betfair also hits a small number of users with additional charges: turnover charge, transaction charge, and premium charge. These are aimed at users who have an extremely high volume of activity, and are something the vast majority of punters will not encounter.
For more information on these, or commission in general, check out Betfair’s information page here.