How Do Bookies Make Money and Can I Really Make a Living Taking Bets?
Bookies and agents can make lucrative money. In fact, the profit margin could even prove better than that of a FanDuel or DraftKings due to their high ad spend, worker salaries and technology. Using a Pay Per Head reduces costs as much of the services associated with high expense are factored into the low weekly cost per player of just $3.
How Do Bookies Make Money?
The most important part of any business is how much money you can get from the business. As a bookie, you are in charge of a lot of money, as you manage many bets. The key word to get familiar with is "juice".
Also called vigorish or vig, the juice is the commission charged by a bookmaker for taking a wager. The juice is how a sportsbook guarantees a profit.
Fees
What percentage do bookies take? That question refers to the book fee that is collected from a wager. Bookies usually take around 10 percent, this is what they call the “juice” or the vig. This is the most definitive source of income for a sportsbook agent. The money that is not collected is returned to the book. For example, let’s say that a player bets on a game between the Washington Football Team and the Dallas Cowboys. Let’s say the Cowboys are favored by 10 points, so you take the Cowboys, at a -10 spread with -110 odds. The player puts down $110 for the bet. If the player wins then they would get $210 back total (the original bet plus $100) back, if they were to lose, the book would keep the $110. Over time, that $10 edge on the favorites contributes to the bookie’s profits.
Maximize Earnings
The only way to maximize profit is to increase the opportunities to collect wager fees such as the vig (juice) mentioned above. To do that an agent must bring more business to their service, offer and manage more bets, and offer a wide variety of bets.
If an agent can be versatile and offer high-dollar bets as well as low-dollar bets, then the money they collect will be on a spectrum. Some players start low and go high, and vice versa.
It is important to encourage these trends by having these options available in bulk. The faster an agent can process and complete wagers, the more money they will make.
If an agent can use bookie software to operate an “assembly line” of gambling, then they will make good money — which is where having a spot on a Pay Per Head sportsbook platform like AcePerHead.com comes in.
Where PPH Software Comes Into Play
There is a common saying, “Spend money, to make money”, and in this context it is applicable. The best way for a sportsbook agent to make money in the modern gambling market is to invest in high-quality price-per-head software services. Price per head service packages is an excellent way to increase profit margins, especially AcePerHead.com. Service packages like then include website-based software that includes all of the tools necessary to run a smooth operation. Price per head service processes all of the bets automatically and constantly updates the data, so your cash flow will increase because you will be able to handle numerous players and bets at the same time. And the price per head software, especially Ace Per Head.com, scales the growth as you go, so you will always meet demand. And meeting demand will increase your cash flow exponentially.
Looking for the Cheapest Pay Per Head Service?
First, you have to consider that there is a “basic” package that all pay per head sportsbook companies should offer, and the minimum requirements they need to be able to provide service to agents. This involves a backend software, which is nothing other than the system your clients will log into to play and the system you’ll use to check on everything and run reports; a mobile platform is a must; different options for a frontend, in other words, your own website, whether it is through the use of templates or customized design and of course a wide range of betting options and sports lines; these are the “must-have” elements that even the cheapest pay per head services will provide, but the quality of the same and all additional “props” is what makes all the difference in the world.
AcePerHead.com starts with just $3 per player per week, the absolute lowest.
- Aaron Goldstein, Gambling911.com
