How Bookies Make Money
The growing presence of online pay per head services, thanks to technology, has created opportunity for people to gain access into a once exclusive industry. With this opportunity we, as service-providers, see many first time agents. Oftentimes we are educators on many aspects of the business, sometimes even on the most basic of topics like how bookies make money.
In those instances, it’s imperative that your PPH service has a strong emphasis toward customer service. Some shops talk a good game. But most fall short and even descend into the “old boy network” mentality, where new bookies with too many questions get the second rate treatment.
At PremierPerHead.com, the customer is the foundation of our business. No entry level experience is required. We actually pride ourselves on being educators on the ins and outs of today’s gaming industry. And so, we are happy to take a look at some basics on how bookies make money in a modern sense.
The Odds Are With You.
Bookmakers have been around for centuries, so they’ve had quite a few years to perfect the system in their favor. The standard 10% charge on all straight bets is designed for the bookie to make a profit. In a perfect world, wagering action will always be split 50/50. In this scenario, the bookie stands to make a profit of 4.5%.
Of course, we know this almost never pans out on a game by game basis. However, taken over the course of a season and across multiple sports, the sample size grows and the margins balance out in our favor.
If your dream is becoming a bookie, it’s the long game that you want to play. This isn’t some get rich quick ponzi scheme. Everything about your business should revolve around staying the course.
The weekly credit, the max wagers, when and how often you settle accounts need to be factored. Leave yourself room for the unexpected. It might not pay off the first weeks, as there will always be good and bad. The goal is to stay steady with your plan and see the long run results.
Volume Is Your Friend
In the same vein as seeing this business on a long term scale, having high wager volume improves your chances of success. In essence, they are one and the same. The more wagers a bettor makes, the more chances that any winning streaks will return to the mean.
Sharp bettors tend to look for larger limits and generally limit their wagers to just a few. By keeping limits manageable and promoting your players to bet multiple sports and offerings, their odds lessen.
PPH services like Premier understand that offering a full board increases the bookies chances of winning the long game. And the sports gaming industry has grown to encompass so much more than just the traditional games lines.
Look no further than the fantasy sports trend. Betting on player stats is a great example of how your business can improve by amplifying the product.
Fast Is The New Sharp
A lot of services like to talk about how “sharp” their lines are. They may even go so far as to say they set their own lines. Don’t fall for snake oil sales tactics. Only the biggest of offshore sportsbooks have an inhouse linesmaker. Most (all?) PPH services are going to be following books from around the industry.
And since even average players can now monitor lines from other sportsbooks, sharp lines are more accurately described as fast lines. When one of the linesetters move the line, the rest follow suit.
Sportsbooks like PremierPerHead.com will be mere seconds, at most, behind major line moves. Technology allows the top sites that have made the investment, to be right in line with the big boys. This keeps the “steam” bettors from jumping on before the number has a chance to move, and at some point you most likely will take on business from such a client.
So don’t fall for the line that a service sets its own line. You don’t want a shop making “specialized” lines for you. Those custom lines are for each bookie to decide based upon his clientele. Want you want is the most current lines across the board.
Cost Of Doing Business
Any solid business plan begins with an analysis of expenses. Paying for any advertising, meetings, travel and services expenses need to considered in the bottom line. Clients will come and go, so attracting new business will alway be an ongoing expenditure.
Of course, Premier can help you keep your service expenses in line. We offer the most competitive rates, only charge for active accounts and provide a top-end service that goes beyond the basics of what you need to be successful. And we work with you to lower your rates as you grow!
If you are serious about making a name in this industry, expect to be in it for the long haul. And no matter your experience, from the bookie with 20 years in the business to the guy still asking how bookies make money, Premier Per Head is the right choice!