So here's yet another thing. I received a reply from Betfair today in response to my question on how I am supposed to work out what the charge will be and verify it, and it raises yet another issue. The Implied Commission they calculate on my losing bets will vary depending on the commission rate of the person (or persons) with whom I am matched!
I could be matched with 100 people. How the heck are they going to work out what rate I am to be credited with Implied Commission at?
Here's the text in full: "We calculate the Premium charge on your Commission Generated. 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) divided by two. Implied commission is calculated on the Market losses x Average market commission rate."
It's rather like shopping at Tescos - you know the price when you pull an item off the shelf, and you know there will be an extra charge, but that charge all depends on which checkout you go to, because some checkout girls (or boys) earn more than others because they are better at their jobs and therefore you pay more for the convenience of checking out with them. The final total of your shopping bill will be visible in a few days when you get your credit card statement. All you can do before then is make a best guess based on the average cost of your shopping over the past 60 weeks. All clear?
Any legal boys ever read this? Is this practice even allowed? I would seriously be very surprised if this random element of who you are matched with affecting your charge is lawful. It just goes from bad to worse.
About Me
- Cassini
- I have had a life-long interest in sports and after studying Pure Mathematics with Statistics at secondary school, have been fascinated by odds and probability. The first system I came up with was a simple one - back the favourite and double up after a loss until a winner. Simple enough in theory, and I told my Dad about it. Not being a betting man himself, he ran it by some of his colleagues, and came home to tell me that it wouldn’t work because a long losing run would mean that the bank would be empty. Then there was always the possibility that the winner would be returned at odds-on, meaning that the total returns would not match the outlay. Not what a ten year old wants to hear! Only slightly daunted, I then went on a search for the Holy Grail, the secret to riches that I knew was out there somewhere. Finally in 2004 I stumbled across an article about Betting Exchanges and four years later I was able to make a steady profit.
This surely can't be legal?! I've contacted both the Gambling Commision and the Office of Fair Trading on this matter.
ReplyDeleteWell done Nick. I can't possibly see how this can be legal. A bank can't charge you a variable fee depending on what account your cheque was made payable to... It's bizarre.
ReplyDeleteMaybe an idea sending an email to the MoneySavingExpert guy, Martin Lewis. He took on the banks unfair charges, him and his legal team might be able to get look into this and because he's quite high profile it will cause even more of a stink for Betfair...
ReplyDeleteGood idea - I'll see if his e-mail is readily avaialable. Perhaps we could all write to him?
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