Did you know that many professional gamblers factor in Betting rebates & discounting? Pro-betting is all about getting the odds in your favour and improving the bottom line. Getting an extra pip or two could be the difference between winning and losing. In the trade, this is what we call advantage gambling!
INTRODUCTION – BETTING REBATES & DISCOUNTING – BET LIKE A PROFESSIONAL & OPTIMISE RETURNS
We advise everyone to think of professional gambling as an everyday business transaction, and for example, we want to compare it with buying Fruit & vegetables. The typical consumer goes to a shop and pays top dollar for a kilo of product. People with large families on a budget might buy in bulk for a discounted price. Small business owners buy from a wholesaler, and the supermarket owner cuts out the middle man by buying directly from the farmer. The price depends on where you are at in the pecking order, and it is the same in discounted betting!
REBATES IN RACING
Pool betting is standard in countries like The United States, Hong Kong, Australia, Singapore, Japan and France. Parimutuel pools takeout a fixed per cent from turnover, there is no bookmaker risk.
If someone is betting a few dollars into a Parimutuel pool, they can’t expect a discount. However, individuals betting more substantial sums might be entitled to a rebate, and the reason for that is simple. Assuming the takeout (the vig) was 15%, those betting $5 would only leave 0.75 dollars with the operator. If someone were betting $1000, the operator would receive $150. Furthermore, pool betting works better when the liquidity is strong because big bets make the market. A prime example of this is the HJKC (Hong Kong Jockey Club). Anyone losing an amount of HK$10,000 (US$1080) or above is eligible for a 10% rebate.
When bookmakers / points-of-sale vendors send bets into a Parimutuel, they are paid a commission. It’s a way of compensating them for collecting bets and processing payments. Some online bookmakers offer part of this commission back to the consumer. Traditionally rebates are between 2-8% for racing pool bets.
BETTING EXCHANGES & REBATES
Ever heard the name Zeljko Ranogajec? For those who don’t know he’s one of the worlds best known professional gamblers! In 2010, Ranogajec was reportedly supplying 7% of Australia’s TabCorp’s 10 billion dollars annual revenue. He accounted for 1/3rd of Betfair’s (betting exchange) Australian turnover, and in 2019 he set up Newfield Limited (Isle of Man) for the same purpose of betting!
Back in the day, Ranogajec and his partners were the principal market maker for Betfair. For their work, they received commission-free betting and 50% of the commission generated. From that one-off deal, Ranogajec was making a higher income than Betfair!
Betfair charges customers from 2 to 5% commission on winning bets. The more a client pays in commission, the lower the rate, albeit for traders they can pay an additional 60% (premium charge) on winnings. However, qualified betting brokers (agents) and big-hitting professional gamblers (direct) qualify for an unheard of 1.7% commission. The agent adds on a margin for supplying broker accounts to customers, and that’s it in a nutshell.
A betting broker is a supplier of betting accounts. Most bookmakers they offer are low margin Asian handicap betting operators. The benefits of using this type of service include; squeezing the betting juice (the vigorish), a single wallet system (move money between accounts), and the option to place big bets.
For this service, agents are either paid a small (0.1 to 0.6%) commission on turnover or asked to position take (share bookie risk). With professional gamblers, they are more inclined to take the first option. Whereas with big-hitting accounts, they might share the commission.
As you can see, the bigger the operation, the more chance for discounting and rebates.