For some time people have been asking me to do a video on the Betfair premium charge. I started this process over a month ago, but it’s proved difficult to specifically summarise all its aspects, so I’m going to break it down into its components parts.
I thought it would be interesting for starters to look at the difference between trading and gambling and how they produce very different results when you take into account commission. This is the imbalance that the premium charge is supposed to address.
In reality, very few people pay the premium charge from all customer and only a tiny number the higher rate charge.
There are many reasons for this that we will explore in a different video. We will also explore in that video whether you could be affected and how it’s changed what I do and how it’s affected me.
It’s interesting to note that both Matchbook and Smarkets have now adopted a similar model.