Early unwanted easter egg for Betfair i believe. Paying for turnover and not for gross profit, how Betfair can deal over the exchange with that?
Betfair is not the answere, it's the question.
....and the answere is NO!!!
Oh dear. Big mistake for racing NSW when BF pull out of posting fields on NSW races. They are all a sham anyway those races. Hopefully that is all this will mean, and any future endeavours from other entities will realise all it will do is cast a big cloud on people gambling on their events.
Ridiculous decision made by ill informed morons.
There is a good segment on this weeks edition of the punters show ( puntersshow.com.au) which explains the ramifications of the new 1.5% turnover tax on NSW racing. Part 2 of the show gives an unbiased view ( unlike TAB owned Sky Channel).
I sent an email to the show explaining how traders approach betfair which received good coverage.
One example I used:
Lay a horse at 1.80 for $5k and back at 1.82 for $5k results in a hedged profit of approx $55 with betfair receiving $2.75 commision (assuming 5%). Betfair will be required to pay $75.00 in turnover tax on this transaction.
Clearly trading on betfair with a turnover based fee is bad business.
It is even worse if you trade Black Caviar.
Lay at 1.08 for $10k and back at 1.09 results in a unhedged profit of $100. Betfair receive $5 commision yet will have to pay $150 tax!!!!!
Betfair has advised customers that for the moment it will be business as usual but how long can this be sustained? Interesting times ahead.
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helplessone (5th April 2012)