The introduction of the POC taxes across the country have started taking their toll on Australia’s largest betting exchange Betfair.
Betfair took to twitter to show followers how the POC charges are hurting their business outlining that they paid out 8 times in fees than what they took in commissions on Saturday’s George Main Stakes won by Winx.
Betfair’s business model is obviously different to the corporates who have started to adjust their markets to absorb some of the costs although Betfair is not able to do this thus their takings on racing are getting squeezed which will eventually flow onto punters.
Unfortunately for the exchange and corporate bookmakers there are going to be further headwinds in coming years which will make it hard for the business to operate in turn will then have a massive affect on all bookmakers around the country who use their model to base odds and bet back into, without Betfair the landscape of markets will change and we will see high percentages for racing punters across the board.
We saw this last week when Betfair had outages, markets from the corporates and on course bookmakers where all at massive %’s.
The introduction of the POC Taxes and high product fees will eventually make it near impossible for punters to win on racing which will force them to bet on sports that will have a lot lower market %’s and lower product fees.
The loss of these punters from racing will then flow onto the sport which will see lower sponsorships, less commissions and eventually lower prize money for owners.
It is only early days of the introduction of the POC taxes but it looks like the governments quick tax grab is on its way to bleeding the industry dry.
Have Your Say 🗣: Has winning become harder since the introduction of POC taxes?
That's like selling coffee for $4 & paying $32 for beans.
We'll continue to pay if punters have a chance to win w/o being banned.
— Betfair Australia (@Betfair_Aus) March 26, 2019
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