Betfair Review
Introduction
The following is an in-depth review of the betting agency Betfair. This review covers the history, features, interface, sports & racing markets, upsides and downsides of the service.
This review is part of our comprehensive Bookmaker Reviews section. The Betting Agencies page provides information and reviews for other sports betting agencies that are suitable for Australians. The following details are updated periodically to keep them up to date.
History, Location and Licence
Betfair was launched in the UK in 2000. It is primarily a betting exchange, although it acts as a bookmaker for its multi betting and Tote products. The service enjoyed a meteoric rise and in 2003 the company was a recipient of one of the Queen’s Awards for Enterprise (the UKs highest official awards for business). As part of its overseas expansions, Betfair commenced obtaining licences offshore, first in Malta and then in Tasmania in 2005, making it the only betting exchange to hold an Australian licence. In 2010 Betfair was floated on the London Stock Exchange and in 2011 it shifted its UK licensed service to Gibraltar to reduce its tax liabilities. In addition to exchange and Tote betting, Betfair offers casino and gaming services, however these products aren’t available to Australian residents.1
A unique feature of Betfair is its dual wallet system. Australian Betfair members are given two account “wallets”. The “Australian” wallet is used for wagering on Australian sporting codes and racing events, while the “Main” wallet is used for wagering on overseas sports and races. Wagers placed using the Australian wallet are regulated by the Tasmanian Gaming Commission while wagers placed using the Main wallet are regulated by the Maltese Lotteries and Gaming Authority in Malta. Both wallets use Australian dollars and members can transfer money between the two with just a few clicks.
Betfair’s expansion into Tasmania was initially met by resistance from the established totalisators and bookmakers. A ban on the use of betting exchanges took effect in Western Australia in early 2007, however Betfair successfully challenged this law because it violated the Constitution of Australia.1 In July 2012, Betfair increased its commissions on Australian racing markets to cover the fees it pays to the Australian racing industry.5
In August 2014, Betfair Australasia became a wholly-owned subsidiary of Crown Resorts Limited following the purchase of a further 50% of Betfair Australasia from Betfair Group Plc. Crown Resorts Limited had acquired the first 50% in 2004.7
In January 2015, BetEasy (now CrownBet) and Betfair announced a joint venture, where from January 6 2015 Betfair will focus purely on exchange wagering and BetEasy will provide fixed odds and tote products. Learn more.
What is a Betting Exchange?
Betting exchanges contrast with bookmaker environments because exchanges operate as a marketplace. Members set the odds for an event and others take up those odds. This enables the user to act as both a punter and bookmaker. Betfair argues that you get 20% better odds with their service than with standard bookmakers. In markets such as head to head betting this claim is often untrue, however Betfair offers by far the best tournament winner and correct score odds. Like most betting exchanges, Betfair earns its revenue through charging commissions on net winnings. Learn more about betting exchanges.
Services and Features
| New member offers | Place your first bet with Betfair (on the Exchange, Tote Extra or Multis) and if it loses you will receive a refund up to $200. Any refunded amount must be turned over at least once at odds of 1.30 or higher before you can withdraw the bonus amount. This offer is only open to Australian and New Zealand residents, except those located in Victoria, South Australia and Western Australia. | ||||||||
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| Deposit options | Australian customers: credit/debit card, POLi, bank transfer, BPAY, Skrill (Moneybookers), Neteller | ||||||||
| Withdrawal options | Australian customers: bank transfer, Skrill (Moneybookers), Neteller | ||||||||
| Transaction fees | None | ||||||||
| Currencies | AUD, CAD, DKK, EUR, GBP, HKD, NOK, SEK, SGD, USD | ||||||||
| Languages | English, български, Česky, Dansk, Deutch, Ελληνικά, Español, Suomi, Italiano, Norsk, Polski, Português, Русский, Svenska, Türkçe, 简体中文, 繁體中文 | ||||||||
| Odds formats | Decimal | ||||||||
| Minimum deposit | POLi: $5 BPAY, bank transfer: $30 Skrill: $15 NETeller: $25 Credit card: $10 |
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| Minimum bet | $5.00 for online exchange wagers and $50.00 for phone betting. The minimum stake for bets placed on the Internet through Multis, Tote Extra and Tote & Exotics is $1.00, except for flexi bets through Tote & Exotics which have a minimum stake of $3.00. | ||||||||
| Maximum payout | For wagers placed on the exchange, the maximum winnings are determined by the level of market activity for each event. Your betting limits are effectively dependent on marketplace liquidity. For most Tote products the maximum payouts range between $20,000 and $50,000. For all racing exotics, Betfair will pay the dividend declared by TattsBet up to a maximum of $50,000 for metropolitan thoroughbred, $25,000 for all non-metropolitan thoroughbreds, harness and greyhounds and $10,000 for all international racing. For multiples, the maximum multiple dividend is 5000, the maximum payout per multi (parlay) bet is $150,000 and the maximum payout per round robin bet is $250,000. The maximum daily payout per customer for all winning multiples bets combined is $250,000. | ||||||||
| Deposit turnover requirements | None that we’re aware of | ||||||||
| Bonus credit turnover requirements | 1x at odds of 1.30 or higher | ||||||||
| Bookmaker margin | 4.6% (see below for more details) | ||||||||
| Exchange fees | Commission Charges: Betfair charges a commission on your net winnings on each market. If you have a net loss on a market you do not pay a commission. The standard commission is 5% for sports and 6.5% for Australian racing. A commission discount of up to 60% is applied based on how active you have recently been on the exchange.
Transaction Charges:: In addition to commission payments, Betfair customers are charged a transaction fee if they process a large number of transactions (1,000 bets an hour). Turnover Charge: Wagering operators in Australia are required to pay a fee based on turnover to racing bodies. Betfair passes this charge onto customers who during a particular week meet all of the below criteria: Premium Charges: a small number (less than 0.5%) of Betfair’s most successful customers will incur Premium Charges. Any customer affected by the Premium Charge will be notified in advance. Each week Betfair calculates the ‘gross profits’ and ‘total charges’ generated over the lifetime of each member’s account. A member is only considered for the Premium Charge if their account is in profit and their total charges generated since joining Betfair are less than 20% of gross profits. Any single win that constitutes more than 50% of lifetime gross profits is excluded from the calculation, and customers will only be considered for the Premium Charge after they have bet in more than 250 markets. Each customer also has a £1,000 allowance against the Premium Charge. This means that every customer considered for the Premium Charge will be exempted from the first £1,000 of the charge incurred. If they apply, the premium charges are:
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| Credit facilities | None | ||||||||
| Forbidden Jurisdictions | Bulgaria, Israel, China/Hong Kong, Ivory Coast, Cuba, Japan, DR Congo, Lebanon, Eritrea, Libya, France, North Korea, Germany, Somalia, Greece, South Africa, Greenland, Sudan, Iran, Turkey, Iraq, USA | ||||||||
| Mobile version of the website? | Yes | ||||||||
| Identity checks | Australian users can verify their identity at an Australia Post office. | ||||||||
| Dormant account fees | Customers registered in Australia and New Zealand are not subject to the Inactive Account Fee (which is $5 per month if the account has been inactive for 13 months or more and the account is in credit). |