Betfair has long been the dominant player in the betting-exchange space and as a result has increased its fees and commission rates continually year-by-year. Up until recently these extra charges to customers were imposed with no apparent harm to their business. However, with the steady emergence of Matchbook as a credible competitor can they now seize the opportunity and capture a considerable part of Betfair’s market share and liquidity?
Please have a look below at the new Betfair’s commission rates, which significantly increased few weeks ago.
Without doubt Betfair takes advantage of their monopolist/leader position and year by year increase the rates. It is no mystery to customers of any product that if one supplier has a monopoly, it leads to inefficient pricing and excessive costs. Betfair presumes that they have such dominant a position in the market, that even this increase will prevent its customers to move to Matchbook or Pinnacle Sports (depending if they are more traders or more sharp bettors). We at Surebet Monitor Team start to have some doubts around it.
Given that Matchbook currently offers a very profitable 0% commission for all soccer trades, compared to Betfair’s 5-7%, this is a miraculous offer and certainly worth a try. Matchbook state that concentration on their liquidity growth is their main focus for their growing user base. To show their commitment to a low margin cost structure they have offered an extended commission FREE trading period which still has 2 months to run.
Also Pinnacle Sports odds are outstanding and their offer evolves. Would it not be an interesting option to break Betfair’s controlling position and move forward? Ahh, pardon me – they are doing this themselves, by increasing these rates. Anyway – the more of you will move across the better liquidity Matchbook will have and the more competition between betting exchanges will appear, which is something everybody must be looking into. To me – there is no better time for a move. Funny thing is that Betfair guys contacted us some weeks ago and asked for a talk regarding introducing unique offer for arbers and high-turnover bettors. It is not fair, Betfair!
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