Racing Victoria (RV) has taken an initiative to bolster wagering turnover by reducing the fees it charges to Betfair.
Traditionally, the race field rate imposed on the Betfair exchange stood at 35 per cent.
However, in a strategic move, RV has decided to lower it to 30 per cent.
While Betfair Australia contributes merely 5 per cent to the overall wagering turnover in Victoria, which amounted to $9.2 billion in the 2022/23 period, the platform holds immense significance for the racing industry.
Despite comprising less than 1 per cent of Betfair’s customer base, professional punters are responsible for over 60 per cent of the company’s wagering.
RV Chief Operating Officer, Aaron Morrison, expressed the decision as an effort to make Victorian racing more appealing to punters and ultimately drive higher turnover for the sport.
The move aims to bring race field rates applicable to Betfair in line with fees charged for other betting products in the market.
Betfair serves as a crucial platform for unrestricted punter-to-punter betting, risk management for bookmakers, and a key reference for price and market trends, making it a significant source of liquidity for the broader wagering market.
The specific dollar figures of the fee reduction were not disclosed by RV, citing “commercial confidence.”
Nevertheless, the change is anticipated to positively impact Victoria’s turnover results, thus driving revenues for RV.
Betfair’s Customer and Commercial Director, Robert Linsley, welcomed the move and stated that the company will continue advocating for lower fees and taxes to offer the best value and experience for their customers.
