tag:blogger.com,1999:blog-5081053233461844335.post4401054254807856000..comments2024-01-03T00:24:05.872-08:00Comments on A view from Barnes village: Premium Charge and the levyMDhttp://www.blogger.com/profile/06864741972109196698noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5081053233461844335.post-30652176135163552212011-02-27T17:17:17.777-08:002011-02-27T17:17:17.777-08:00Regarding the following:
"So, Betfair's b...Regarding the following:<br />"So, Betfair's business model is that it makes sure that it markets to a fast-growing customer base, and keeps the money circulating in the system. The longer the money stays in the system, the more often Betfair clips the ticket. Betfair's aim is therefore to keep the money in the system for as long as possible."<br /><br /><br />This suggets that an incentive to keep money in the system would be beneficial. <br /><br />I've often said that there is a big difference between a PC paying customer with a £3k balance making and withdrawing £1k a week, and a PC paying customer with a £100k balance, making £1k a week and increasing their balance withdrawing nothing, in order to make more. <br /><br />Draining of liquidity doesn't take place when money is won, it takes place when it is withdrawn. Unfortunately for me, Betfair does not make that distinction. <br /><br />Being able to defer PC until withdrawal makes sense from that viewpoint. I have withdrawn quite a large amount of money from my betfair account specifically for the purpose of avoiding PC by arbing with bookies and increasing commission generated. Being able to defer PC would keep more money in the system and take care of the 'unfair' aspect of not receiving a rebate after a big loss.<br /><br />A lucky customer who turns £1k into £100k in a year, pays PC and then blows the lot, will not get anything back.The Investornoreply@blogger.comtag:blogger.com,1999:blog-5081053233461844335.post-87695105330516512302010-07-23T03:36:46.199-07:002010-07-23T03:36:46.199-07:00"Racing should be delighted that Betfair is o..."Racing should be delighted that Betfair is out there maximising its revenues...."<br /><br />In theory, yes, but maybe the reality is something like this: those who run Racing have fallen for the hand-wringing by the bookmaking chains about how Betfair is directly and indirectly giving consumers too good a deal and is making their horseracing business impossible. Now if only someone could shaft Betfair's business model (by levying layers, traders, bot users, PC payers, [insert any other type of BF customers]), things would return to how they used to be, with the bookmaking chains enthusiastically promoting British horseracing, with resulting juicy profits (and Levy receipts). <br /><br />Actually, no, forget that, those running Racing aren't that gullible.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5081053233461844335.post-19687062274385846442010-07-22T13:46:48.511-07:002010-07-22T13:46:48.511-07:00Hi Mark,
A great, informative post, but it makes ...Hi Mark,<br /><br />A great, informative post, but it makes me wonder why or didn't read those comments when the premium charge was introduced 2 years ago.<br /><br />Whilst I still don't like it, at least you explain some good points very well e.g. allowing customers to win etc. which would have put the fire out in many quarters had it been explained properly at the time.<br /><br />All the best,<br /><br />Mark<br /><br />P.S. Apologies if you did, but I read a lot about it at he time and didn't see the detail that you mention here printed anywhere.Mark Iversonhttps://www.blogger.com/profile/02898989140075138851noreply@blogger.com