Betfair Exchange Now Offering Customers 2% Commission
Betfair are giving customers the option of reducing the commission they pay on winning exchange bets to 2% in what could be seen as a concerted effort to stave off increasing competition from the likes of Betdaq and Matchbook, who have long operated a 2% commission model.
The move, which is available to both new and existing account holders, is available via the new ‘My Betfair Rewards’ feature which is divided into three separate packages.
The 2% commission option is part of the ‘Basic’ rewards package but opting into this will mean that customers will no longer be eligible for ‘Best odds guaranteed’ prices on the sportsbook.
Customers will also relinquish any access to Betfair’s popular Cash Race as well as any other promotions.
So the 2% commission option does come with caveats, but many of the more serious exchange players will see this as a price worth paying – even if it does mean the more successful of which may find themselves edging closer to the Premium Charge threshold as a result.
Betfair Strengthen Their Position
Of course, the lowest commission rate won’t necessarily appeal to everyone, and the lure of Betfair’s myriad of promotions via ‘Rewards+’ may appeal more to a casual bettor, who may be happy to sacrifice 8% of their gross winnings if it means they have full access to sportsbook and casino promotions.
One of the most appealing features of that package is a 10% refund on all losses.
So, with new exchange operators emerging on a regular basis, will this be enough for Betfair to see off the competition?
Well, maybe for now. One of the major advantages Betfair has over its rivals is liquidity – especially on in-running markets (even though that has diluted somewhat in recent years), and that is a key factor for many bettors that use exchanges regularly.
Lack of liquidity on rival exchanges, even the higher profile ones like Betdaq, has long been seen as the overwhelming reason why so many Betfair users don’t go elsewhere, even though many are paying more in commission as a result.
So this latest development undoubtedly strengthens the position of the only real behemoth in the exchange world and if it means more new accounts, which will in turn increase liquidity further, then rival firms face an uphill battle if they are to continue competing with Betfair.
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