tag:blogger.com,1999:blog-4528393111359731672.post265344418195383763..comments2024-03-24T00:19:53.054+00:00Comments on Green All Over: Premium PuntingCassinihttp://www.blogger.com/profile/05879449876804295094noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-4528393111359731672.post-796746752943907682010-12-28T09:47:16.358+00:002010-12-28T09:47:16.358+00:00Oops, sorry for the double posting.Oops, sorry for the double posting.Benhttps://www.blogger.com/profile/11684405148811576653noreply@blogger.comtag:blogger.com,1999:blog-4528393111359731672.post-32881619241859366392010-12-28T09:46:54.017+00:002010-12-28T09:46:54.017+00:00Well, it was the PC calculation bit that I was rea...Well, it was the PC calculation bit that I was really moaning about, but in general, any look at the % charges will go wrong if you only consider one winning bet.<br /><br />So, imagine someone who pays the premium charge, and also is on 5% commission, betting on the new Betfair 'virtual coin flip' exchange games markets (I really wouldn't be surprised if they introduced this... anything to make BF more money!)<br /><br />The gamblers backs £100 at 2.06, and being an evens shot, they can expect to win as often as they lose. So we'll look at the results after one win and one loss:<br /><br />Gross profit from the win: £106. Commission at 5%: £5.30, profit: £100.70.<br />Losing bet: £100 loss. Gross win from both bets: £6. Total profit: £0.70<br /><br />This punter has paid a massive 88% of their winnings in commission!<br /><br />But wait, the premium charge comes to the rescue...<br /><br />Let's say this gambler already has £1000 gross win for the week, with £100 paid in normal commission: £1000 gross win, £100 commission, that's 10% and so BF add on a £100 PC charge => £800 net profit.<br /><br />Now, add in the two coin flip bets: £1006 gross win, £105.30 normal commission. Thats 10.47%. Betfair will still want their 20%, which is £201.20. Net profit now is £1006 - £201.20 => £804.80<br /><br />Do you see? If this person DID NOT pay PC, they would have made £0.70 from their bets. But because they pay PC, their additional profit is actually £4.80<br /><br />Paying PC has meant that the gambler has made *more* profit from these bets. In other words, they have a bigger profit margin, and could be making money from these coin flip bets by backing as low as 2.02.<br /><br />(Apologies in advance for any errors in my calculations. I haven't had any coffee yet)Benhttps://www.blogger.com/profile/11684405148811576653noreply@blogger.comtag:blogger.com,1999:blog-4528393111359731672.post-2224152593840587382010-12-28T09:45:50.526+00:002010-12-28T09:45:50.526+00:00Well, it was the PC calculation bit that I was rea...Well, it was the PC calculation bit that I was really moaning about, but in general, any look at the % <br /><br />charges will go wrong if you only consider one winning bet.<br /><br />So, imagine someone who pays the premium charge, and also is on 5% commission, betting on the new <br /><br />Betfair 'virtual coin flip' exchange games markets (I really wouldn't be surprised if they introduced <br /><br />this... anything to make BF more money!)<br /><br />The gamblers backs £100 at 2.06, and being an evens shot, they can expect to win as often as they <br /><br />lose. So we'll look at the results after one win and one loss:<br /><br />Gross profit from the win: £106. Commission at 5%: £5.30, profit: £100.70.<br />Losing bet: £100 loss. Gross win from both bets: £6. Total profit: £0.70<br /><br />This punter has paid a massive 88% of their winnings in commission!<br /><br />But wait, the premium charge comes to the rescue...<br /><br />Let's say this gambler already has £1000 gross win for the week, with £100 paid in normal commission: <br /><br />£1000 gross win, £100 commission, that's 10% and so BF add on a £100 PC charge => £800 net profit.<br /><br />Now, add in the two coin flip bets: £1006 gross win, £105.30 normal commission. Thats 10.47%. Betfair <br /><br />will still want their 20%, which is £201.20. Net profit now is £1006 - £201.20 => £804.80<br /><br />Do you see? If this person DID NOT pay PC, they would have made £0.70 from their bets. But because <br /><br />they pay PC, their additional profit is actually £4.80<br /><br />Paying PC has meant that the gambler has made *more* profit from these bets. In other words, they have <br /><br />a bigger profit margin, and could be making money from these coin flip bets by backing as low as 2.02.<br /><br />(Apologies in advance for any errors in my calculations. I haven't had any coffee yet)Benhttps://www.blogger.com/profile/11684405148811576653noreply@blogger.com