{"id":4509,"date":"2023-08-30T11:37:44","date_gmt":"2023-08-30T11:37:44","guid":{"rendered":"https:\/\/www.newbettingsites.co\/?page_id=4509"},"modified":"2023-09-21T12:45:07","modified_gmt":"2023-09-21T12:45:07","slug":"what-is-the-betfair-premium-charge","status":"publish","type":"page","link":"https:\/\/www.newbettingsites.co\/articles\/what-is-the-betfair-premium-charge\/","title":{"rendered":"What is the Betfair Premium Charge? Do You Have To Pay It?"},"content":{"rendered":"

\"BetfairBetfair is one of the biggest betting companies in the world, largely thanks to the fact that offering peer-to-peer betting services is unique. If you want to place a bet that isn’t just what all of the other bookmakers are offering and you want the odds to be competitive<\/a>, betting on the exchange<\/a> is one of the only things that you can do.<\/p>\n

For the company itself, the way that it makes money is by taking a percentage of the winnings from the punter that enjoys success in their bet. The good news is that it provides a nice steady income, but the bad news is that it limits how much money Betfair can make.<\/p>\n

The fact that exchanges aren’t exactly huge money makers is why so few companies offer one. For Betfair, therefore, there was always a need to try to find other ways to ensure that their income was competitive. Whilst they moved to introduced a regular sports book, online casino and other products, the exchange was still their biggest income generator and where they felt they could make more money somehow.<\/p>\n

In 2023, the Betfair Premium Charge was introduced, which saw the biggest winners charged an extra amount on their winnings that customers weren’t happy about.<\/p>\n

Understanding Betfair’s Money-Making Method<\/h2>\n

\"moneyWhen it comes to Betfair, we first need to get our head around how the company makes money generally to understand why it felt the Premium Charge was necessary.<\/p>\n

When it was launched at the start of the online betting craze, Betfair was purely an exchange platform. This meant that it acted as a middleman, putting bettors in touch with each other and facilitating their betting in a safe and secure environment. In order to make a profit themselves, they took 5% of the winning bettor’s money, which was a commission taken for playing the role that they did in the process.<\/p>\n

In the years that followed, Betfair’s popularity grew and it made plenty of money thanks to its 5% commission fee. It joined forces with Paddy Power<\/a> and eventually it launched a sports book of its own, allowing them to benefit from those that wanted to place bets with them but couldn’t get their heads around how the exchange worked.<\/p>\n

This gave the same sort of profit as other bookmakers, but the small margins taken from its most popular platform, the exchange, will still have given those in charge of the companies headaches. It was a finite resource, so how could they improve their take?<\/p>\n

The Premium Charge<\/h2>\n

\"premiumThanks to the way that the exchange worked, some customers were able to make huge profits from others whilst only paying a commission of 5%. Imagine you’ve just won \u00a3100,000, you’ll only need to give Betfair \u00a35,000 and take the other \u00a395,000 home. As a result, Betfair decided that it needed to do something in order to make more money from the successful customers.<\/p>\n

What they came up with was the Premier Charge, which they decided would only be payable by those that were making the most money from betting on the exchange, with the following being the rules:<\/p>\n