Oh dear, oh dear, a possible high of 60% tax on winnings?
This is on the site:
From 18th July 2011 Betfair will be making some changes to the Premium Charge. The current Premium Charge mechanism will remain in place but higher rates may now apply to a small number of customers (less than 0.1% of annual active customers).
Full details of the changes can now be found on the Betfair Charges page under the About Us section of the website. However, the changes can be summarised as follows:
• Customers will only be subject to Premium Charges at higher rates if they satisfy all of the following conditions:
o Lifetime net profits* exceed £250,000
o Lifetime commission generated less than 40% of lifetime gross profits
o Bet in more than 1,000 markets
• Customers that satisfy all of the above conditions will be asked to pay Premium Charges at rates between 40% and 60% on all future exchange activity.
All customers that will be affected by these changes have already been contacted.
And many people have got this too:
The Premium Charge rate applied to each customer that satisfies these conditions is dependent on their lifetime commission generated to gross profits ratio. The exact rate will be determined by the following table:
Lifetime commission generated
to gross profits ratio Applicable Premium Charge rate
< 5% 60%
5% - 10% 50%
> 10% 40%
Because of my age, I've not reached €250k from Betfair yet - although one day I hope to, that'll probably be the same day I'll have to leave. I'm also sure (being realistic) that not many will have won €250k net profit, they do point out its less than 0.1% of annual users.
The main issues will be it is unbelievably bad PR, and the biggest issue is how will liquidity be effected because obviously the big players will be effected (the 100k lumps we love to see).
I'm not really sure how it will turn out myself. We shall see.
(Hello Betdaq, if youre reading this, can you please get off your fucking arse and create some competition, thanks!)