Betfair Premium Charge

[chance]

I am interested in how many posters at SBR have paid this insane charge.

If you have been hit with it waht methods do you use to minimise it on a weekly basis?

[AUSSIE_PUNTER]

iam a bet fair member what charge are you talking about

[chance]

5) Premium Charges

In addition to the other charges detailed above, a small number (less than 0.5%) of our most successful customers will incur Premium Charges.

Premium Charges will take effect from 22nd September 2008 with the first charges paid the following week (week commencing 29th September 2008).

Please note that if you become eligible to incur Premium Charges, we will contact you before any charges are paid.

Calculating Potential Charges

Each week Betfair will calculate your ‘gross profits’* made, and your ‘total charges’** generated over the previous 60 week period. The details of these calculations are explained below.

You’ll only be considered for the Premium Charge if your account is in profit over the previous 60 weeks, and only if the total charges generated during that period are less than 20% of your gross profits.

The vast majority of customers, and even the majority of those whose betting on Betfair was profitable over the previous 60 weeks, do not meet both these conditions and will not incur the Premium Charge.

While those conditions accurately describe our most successful customers, they might also apply to new customers who have only bet in a few markets, or those whose accounts are in profit because of a significant big win. To ensure that those accounts are not inadvertently charged, we’ve added two further conditions: any single win that constitutes more than 50% of gross profits over the previous 60 weeks will be excluded from the calculation, and customers will only be considered for the Premium Charge if they have bet in more than 250 markets during that 60 week period.

Each customer will also have an allowance in each 60 week period of £1,000 against the Premium Charge. This means that every customer considered for the Premium Charge will be exempted from the first £1,000 of the charge in each 60 week period.

Please note that for the purposes of calculating the charge we will assume that the charge has been in place since January 2005. This means that customers that would have paid Premium Charges before 22nd September 2008 will be given the credit of hypothetical charges paid in the past in order to offset potential future charges. However, this also means that for some customers, some or all of the £1,000 allowance against the charge will have been used prior to 22nd September 2008 in order to offset hypothetical charges paid i.e. the allowance applies to each 60 week period and not from any given date. Assuming hypothetical charges, less allowance, had been paid prior to introduction of the charge has the effect of reducing the amount that customers would typically incur.

Each week the customers who meet all the conditions set out above will be charged the lesser of:

• <LI class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l2 level1 lfo1">The difference between 20% of the previous week’s gross profits and the total charges generated during the week; and
• The difference between 20% of the previous 60 weeks’ gross profits and the total charges generated during that period.

This means that customers will never be faced with a Premium Charge that is more than 20% of their gross profits for the previous week.

Please note that the second of the two calculations set out above can only ever reduce the Premium Charge and will apply on the rare occasion that the difference between 20% of the previous 60 weeks’ gross profits and the total charges generated during that period is less than the same calculation for the previous week.

Premium Charges will be deducted from customer accounts weekly (on Wednesdays) in relation to the previous week’s activity (Monday to Sunday).

Accounts that relate to one person, entity, API subscription or a Master Account with related Sub- accounts (Trading version only) are treated as one customer for the purposes of calculating Premium Charges. Note that no Betfair points will accrue for Premium Charges.

*By ‘gross profits’ we mean the amounts won, excluding total charges, less the amounts lost, on all Betfair markets.

**By ‘total charges’ we mean all commission generated by Betfair as a result of your betting, plus any Transaction Charges, Data Request Charges and Premium Charges you’ve incurred. ‘Commission generated’ includes the commission paid on winnings, but also the commission that Betfair makes from the other customers who win in markets in which you’ve lost, which we call ‘implied commission’. When you win, Betfair collects commission at your rate of commission, but when you lose, the commission collected by Betfair from the winners is at their rate. So we’ll determine the commission generated by your betting activity to be:

Commission generated = (Commission + Implied Commission) ÷ 2

where

Implied Commission = market losses x average market commission rate

We divide by 2 because otherwise we’d be counting each pound of commission twice.

Premium Charge Summary

You will only be considered for the Premium Charge if, over the previous 60 weeks, you satisfy the following criteria:

• <LI class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level1 lfo2">Your account is in profit; <LI class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level1 lfo2">Your total charges generated are less than 20% of gross profits; and
• You bet in more than 250 markets.

Two further conditions reduce the likelihood that you will be required to pay the Premium Charge:

• <LI class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l1 level1 lfo3">Any single win that constitutes more than 50% of your gross profits over the previous 60 weeks will be excluded from the calculation; and
• Each customer will have a 60 week allowance of £1,000 against the Premium Charge.

Each week the customers who meet all the conditions set out above will be charged the lesser of:

• <LI class=MsoNormal style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l3 level1 lfo4">The difference between 20% of the previous week’s gross profits and the total charges generated during the week; and
• The difference between 20% of the previous 60 weeks’ gross profits and the total charges generated during that period.

Examples

Example 1

You have won gross profits of £10,000 over the previous 60 weeks having bet in 800 markets. You have paid total charges of £980; all of which has been paid through commission generated. You have not been charged any Premium Charges over the previous 60 weeks although you have fully used up your annual allowance of £1,000.

During the previous week you won £500 and paid total charges of £80. You are therefore charged £20 in Premium Charges ((£500 x 20%) - £80 = £20).

Example 2 – Charge Allowance

You have won gross profits of £10,000 over the previous 60 weeks having bet in 320 markets. You have paid total charges of £1,050; £850 commission generated, £200 Transaction Charges and £0 Premium Charges.

During the previous week you won £500 and paid total charges of £50. In the absence of a charge allowance you would have been charged Premium Charges of £50 ((£500 x 20%) - £50 = £50). However, the £50 is offset against the £1,000 charge allowance meaning that no additional Premium Charge is paid. You then carry over the balance of your charge allowance (£950) to offset against potential future Premium Charges.

Example 3 – Excluding ‘big’ wins

You have won gross profits of £8,000 over the previous 60 weeks having bet in 500 markets. You have paid total charges of £1,025, all of which has been paid through commission generated.

During the previous week you won £5,000 from a single market and paid total charges of £125. As the win constitutes more than 50% of your total gross profits over the previous 60 weeks, it is excluded for the purposes of calculating the Premium Charge. However, the commission generated on the win does contribute towards total charges paid.

After the win is removed you have gross profits of £3,000 and total charges of £1,025 and therefore incur no additional Premium Charge.

[AUSSIE_PUNTER]

mate iam in australia so those charges dont apply to me

[chance]

20 Aussies have been hit with this charge so far. When or if your account gets into profit you will also

[AUSSIE_PUNTER]

20 Aussies have been hit with this charge so far. When or if your account gets into profit you will also

mate iam +$16,000 in my account over 12 month no fee

o it might help me that i have a mate that works at betfair

[pico]

when you bet aussie a-league soccer, they informed you that there is a separate purse for aussie related wagers because for tax reasons. aussie gov collect tax from winnings?

[AUSSIE_PUNTER]

when you bet aussie a-league soccer, they informed you that there is a separate purse for aussie related wagers because for tax reasons. Aussie gov collect tax from winnings?

i pay my taxes seperate section 23a.4 australian recreationaland gameing tax laws australia

[pico]

how much is aussie gambling tax? 1% or more? do they do it weekly or after every win?

[AUSSIE_PUNTER]

how much is aussie gambling tax? 1% or more? do they do it weekly or after every win?

nah its 7% yearly for 50,000 or less

[rm18]

betfair tax is only if you win a real high % of bets, you can make millions and not get taxed at all

[pico]

betfair tax is only if you win a real high % of bets, you can make millions and not get taxed at all

tax the winners? i hate that policy. should be a flat tax.