9th July 2011, 01:14 PM
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Member
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Join Date: Jan 1970
Posts: 4,415
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Yet another bright spark with a bright idea ruins a company.
See this every week somewhere.
The premise is that volume traders place strain on the IT infrastructure calling for constant upgrades, and they don't pay their way. They don't generate enough commission because their winning bets are marginal compared with turnover.
However, some moron with a masters in accounting has no nouse, education is not equal to wisdom.
Betfair is successful because of the liquidity provided by the traders.
Without liquidity, Betfair is dead.
Backers and Layers are encouraged to use Betfair because of the money available at various prices.
The backers and layers generate the bulk of the commission.
So they drive away the "costly" traders, and then layers and backers will follow in droves.
Many of these corporations are simply driven by idiots.
The other situation that has not been thought through, is this constant changing of the goal posts, it has a very detrimental effect on serious punters, there's no confidence left anymore, because every month, something else changes with the cost structure.
The cost of punting on Betfair is too high, but when the rules are constantly changing and being backdated to suit the "board", then it is truely BetUnfair.
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