Betfair trims charges to boost liquidity

Betfair is set to remove premium charges from Spanish Primera Division football matches and all rugby union markets on its exchange in a bid to improve liquidity.

The trial is set to begin on 13 November and will last for three months on football, and until June for rugby. Betfair has kept the door open to extending the offer both in terms of duration and sports depending on its success.

The premium charge has been a source of complaint for many Betfair customers who believe it has contributed to a reduction in liquidity due to larger staking punters looking elsewhere.

Customers currently pay a premium charge at the end of any profitable week in which they have paid less than 20% of profit in total charges. The amount of premium charge applied makes up the remainder of the 20% and is automatically deducted from the customers’ account balance.

Last week, Ladbrokes launched its new Ladbrokes Exchange product following its purchase of Betdaq earlier in the year. The operator has ruled out introducing premium charges, stating they would “run in the face of everything we believe in”.

In September, Betfair declared it is on course to meet full-year expectations despite posting a 13% year-on-year decline in revenue for Q1 FY14. Revenue for the three-months ending 31 July 2013 fell to £90.4m, down from £103.8m during the corresponding 2012 period.

Betfair recently has launched a six-month TV advertising campaign to promote its mobile live casino product, while also preparing for an imminent launch into the New Jersey egaming market with a low-key marketing push comprising a new Twitter account and holding page.