Betting S.P
 

Out of interest I looked at yesterday's S.P. results.

The two rules I used were:

1) Fields that had 9 to 12 runners.
2) Bet all S.P. prices that were $29.90 and less.

There were 25 races, the winner was struck in all 25.

The outlay ($1.00) was $168 and the S.P. return was $197. I applied Betfair's commission to the winner's price and not the race's profit (if any), so the real result would have been slightly better.

I hope to look at the results of other days, and if worthwhile I'll report back here.

Don't forget the turnover charge which will apply to ALL your back bets regardless of winning. Granted it's not much (1.2%) but it can detract from the bottom line should any backing endeavour go anywhere and you therefore back bet on more than 50 markets per week.

Not being a Betfair bettor I'm not aware of any turnover tax.

Are you saying 1.2% of my bet is automatically deducted together with 6.35% of any profit? If I bet on 90% of the field I automatically lose 1.2% of each bet? If I bet on less than 50 markets/races/horses a week then the tax does not apply?

Sounds a like the dreaded Ned Kellyesque TAB where approximately 16% of the bet is gouged.

Yes. Every back bet is subject to the 1.2% turnover charge (in NSW, VIC, QLD, WA which is around 80-90% of most meetings) regardless of winning or losing. You have to bet in more than 50 taxed markets per week and bet more than $2000 (which could easily be done if looking to up the ante one day).

This charge will only apply to customers who during a week meet all three of the below criteria:
have matched back bets on 50 or more markets which Betfair is subject to a turnover fee from a racing body (‘turnover charge markets’);

have matched back bets with an aggregate value of $2000 or greater on turnover charge markets; and

the total commission generated by the customer on turnover charge markets is less than 1.5% of the aggregate value of matched back bets placed by the customer on those markets.
Total commission generated is half of the commission paid plus half of implied commission, calculated by the formula = (commission paid + implied commission) ÷ 2.

Implied commission is 3% of player losses where players make an overall loss on a single market.

Turnover charge markets will be identified in the grey text of the market view.


MG you need to calculate how much commission you paid on those winning bets & if it less than 1.5% of your total bets then turnover charge may apply.

Also I am fairly sure Betfair give you one weeks grace & let you know that the turnover charge will apply in future if you meet the 3 criteria.

Michael,

Backing all under 25 should show a similar profit to laying all over 25. The amount you are winning by backing under an amount should be roughly equal to the amount you can gain by backing everything over a price point.

Thanks, U.B. This would apply to races of 11 starters (I've reduced the max amount of starters from 12 to 11). However, I think the profit might be more attractive from betting because after looking at Saturday's results there have been some races whose profit have trebled the race's outlay. However it's something to keep in mind. My only perceived problem is that I've got to be at a computer.

Also, thanks everyone for the info re the turnover tax.

Assuming a turnover tax of 1.5% ($1.50 for every $100 wagered) yesterday's outlay would have been approximately $149.50 for a total return (includes Betfair's commission) of approx $183.

And on Saturday the total outlay (I've also included the T.tax of 1.5%) comes to approx $212 but the total return comes to approximately of $307. There were 39 races, and the winner was struck in 38 of them. I think betting was better than laying, but that is after only 61 races over the two days.

I'm ending my research with this. I'm tempted to bet qualifying races when I'm at a computer.

Out of interest I looked at yesterday's and last Friday's results.

Yesterday would have won about $10 and last Friday about $20.

For the last five days a profit would have been made every day. The total amount of races was about 570 and the profit for $1.00 bets was about $350, (includes turnover tax) thanks mainly to Saturday.

Because it is not a Laying system I've already just about lost all interest in it.

Michael,

As I said just lay the selections you are not backing and the profit should be simiar (and no turnover tax).

Thanks, UB.

Unfortunately it's my usual problem - to back or lay the selections I have to be at my computer which is usually a big discouragement for me.