Home building contractors have a reputation for being high-risk businesses.
But according to one new study, the industry is actually safer than it’s often portrayed.
The National Audit Office said the bookmakers were more likely to give clients a guaranteed return than the other way round.
“In contrast to the majority of bookmakers, we found that bookmakers are less likely to award an ‘outstanding’ bonus,” it said.
“When they do award a bonus, it is often in the form of a commission or bonus package that has been negotiated for at least one year.
This practice is generally not recognised by the bookmaker and can result in a higher risk of underwriting, the audit said.
The audit said that in the case of a guaranteed bonus, the odds of a payout were lower than for other types of bonuses, such as commission or commission-only bonuses.
However, when it came to the guaranteed bonus itself, the watchdog found that there was a clear correlation between the rate at which the bonus was awarded and the rate of return.
It found that for all of the bonuses awarded in the year to 31 March 2019, the average guaranteed bonus was 0.8 per cent above the industry average.”
The report also found that some bonuses were awarded at much higher rates than the industry standard,” it found.”
These higher rates of award could lead to a higher payout for the bookies.
“The bookmakers said the audit had found that while they did make mistakes, they were committed to providing an ethical and fair process to all bookmakers.”
This is why we offer a full, fair and transparent process to our bookmakers who want to offer their services,” a spokesperson said.
