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Originally Posted by jfc
Actually Betfair are not saying anything remotely like your claim.
You apparently have missed the part where Betfair reveal what covering the cost really means.
Now if you study the situation there is no valid reason to suggest that Trader B costs Betfair more than Punter A.
Loser C who very rarely gets a bet matched but wastes tons of resources might actually cost much more.
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I don't believe Betfair are telling us accurately the reasoning behind this, I don't believe that one customer costs Betfair more than another generally.
They are already set up, they already have their staff and software.
The previous costs have been offset by transaction charges (loads on their server and processing volumes of single bets from one customer etc).
The premium charge is just another area to raise revenue.
In fact it's quite ingenious when you think about it...possibly dastardly
Losing customers are generally not affected, so keep betting.
Winning customers will keep betting because they are winning.
It's the traders, arbers and bookmaking punters who are the worst off.
They don't care if they lose these clients, because the premium charge from those that stay will more than make up for those who leave.
All that suffers is liquidity, but where short term people leave, there are replacements always waiting to have a crack at it.
A lot of people think that the droves leaving and decrease in liquidity will put Betfair out of business, in fact I think it will create more effective advertising than any planted garden or race sponsorship could do.
I can guarantee that this time next year, a lot of regular winners will have moved elsewhere or changed the way they do things, but that Betfair's liquidity will be better than ever.