Some respite from taxation hikes and fees is on the way for Australian punters who use the betting exchange Betfair.
In what has been described as a “significant win” for its customers, Betfair is poised to reduce its market base rate (MBR) fee on harness racing events in NSW.
Currently operating at 10 per cent, the MBR will be dropped to 7 per cent from July 1. The change will bring NSW harness in line with other states.
The MBR is set by Betfair and is directly related to the fees the state regulatory body imposes on the betting exchange for operating markets on that code.
In this instance, Betfair has been able to secure a deal with Harness Racing NSW (HRNSW) that it hopes will drive liquidity in its betting markets.
The 10 per cent rate was imposed in August 2021, having been raised from 8 per cent after Betafir had failed to argue that its fees from HRNSW should be charged based on a ‘revenue model’, rather than a ‘turnover model’.
Betfair’s head of commercial and retention, Jeremy Ng, says the decision to reduce the MBR will have a material impact on liquidity.
“Betfair strives to provide the best possible service for its customers, and one of the ways to do this is by minimising the MBR,” Ng said.
“At a time when increasing fees and taxes are ultimately passed on to punters, we are proud to have worked closely with Harness Racing NSW to allow us to reduce the MBR charged on NSW harness racing.
“This price reduction means that turnover is more sustainable as punters’ money will now go further.”
Customers who use the exchange to back and lay horses on NSW thoroughbred races remain subject to a 10 per cent MBR. That regime has persisted since 2017 and has stymied growth for Betfair in the key NSW racing market.
The MBR announcements for harness will be further supported on the Betfair Hub, with pro-analyst Will Norman joining Betfair’s team of wagering experts to provide weekly selections on NSW harness races.
"It's fantastic news. The reduction in MBR will lead to more liquidity in markets which will drive more competitive market percentages and in turn better odds for the punters," he said.
"Betfair providing a reduction in MBR is the polar opposite of what is happening within the broader punting landscape in Australia.”
