How Does a Pay Per Head Business Work?

Written by:
C Costigan
Published on:
May/16/2024

One of the biggest businesses to emerge from the explosion in popularity with sports betting is what's commonly referred to as the pay per head industry.  In its simplest form, anyone with a few friends or family members who dabble in sports betting can own a sportsbook.  Better still, you can operate a sportsbook without the need to raise substantial capital.

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Having a quintessential understanding of how a pay per head works is key to enjoying success for many years to come.  Let's discuss below.

A Beacon of Light

Small time bookies, that's the vast majority, consider today's Pay Per Heads to be a "beacon of light".  The platform allows a smaller operator to compete with the likes of a DraftKings or FanDuel without having to beg for millions of dollars from investors.  The PPH solution levels the playing field.

The typical pay per head will charge a small weekly fee per player.  In return one gets full access to odds, a customized website that each individual can log into, 24-7 customer service, live in-play wagering, a massive menu of betting opportunities, full reporting, server hosting and even a racebook and live dealer casino.

Much to the chagrin of early PPH operators, pricing has dropped from around $40 to $65 per player to under $10 at providers like PricePerPlayer.

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PricePerPlayer's Transparent Tier Payment Model

0-99 Players:
$5.00 Per Player
100 to 199 Players:
$4.50 Per Player
200 to 299 Players:
$4.00 Per Player
300 to 499 Players:
$3.50 Per Player
500 to 699 Players:
$3.00 Per Player
700 to 999 Players:
$2.50 Per Player
1,000 + Players:
$2.00 Per Player

Learn More Here

With the improvement in technology, bookmakers have greater access to improved tools as well.

Simply put, today's local bookies (often referred to as the "corner bookie") cannot operate without a PPH solution.  The reason: Your players demand the ability to place bets on games as they happen (live in-play) as well as a countless number of player and game props.  Yeah, you need software to accomplish that feat.

It's Easier Than You Might Think to Compete With a FanDuel

Let's be clear, FanDuel offers an excellent app.  It's no secret they and DraftKings have chased even established players out of the U.S. regulated market (witness Unibet).

But bookies have the ability to fill voids left by their heavily regulated counterparts.

What follows are some great examples.

No Betting on Popular In-State Colleges

As of 2024, betting on the NCAA Men's Championship winning UConn Huskies or games they are featured in is only available for tournament play like March Madness in the state of Connecticut.  That's perhaps an improvement over other states, but these are the Huskies and folks in this state want to bet them year round.  They can't without a local or offshore sportsbook.

In states like New Jersey, Illinois and Virginia it's even worse.  You can't bet on these teams during tournament play or playoffs.

In Oregon you are limited to only one app and there is zero wageringon college sports.

It's Becoming More Difficult to Open an Account Using a Credit Card

Iowa, Massachusetts, New Hampshire, Rhode Island, Tennessee and likely soon-to-be Pennsylvania are states that prohibit using a credit card to fund one's sportsbook account.

Most bookies extend credit and players love it.

College Player Props Becoming Off Limits

Folks love to bet on player props when it comes to professional sports and this is true at the collegiate level as well.  More and more state regulated sports betting apps are being pressured to stop offering college player props.

More Great Advantages

  • Customers can bet anonymously
  • No need for players to provide a social security number or other personal information
  • 18 and up welcome by most local bookmakers
  • FanDuel and DraftKings tend to go overboard at times with limiting players

Check Out These Other Great PPH Tools

These are tools offered by our friends at PricePerPlayer:

Finance and Banking – Bookies have the ability to keep track and manage all financial aspect of the sportsbook like player settlements and bonus management.

Reports, Metrics and KPI – These reports are essential for a bookie to measure the health of their sportsbook and for player risk management.

Player Management – The bookmaker can set his or her own limits as well as manage access to certain gambling options. In most cases, the player management tools include player profiling, and communication applications.

Lines Management – As mentioned above, the best pay per head solution will offer the very best in experienced lines makers, odds movements and bookies can even set lines specific to individual plays for bettors.

You're in Control

Remember that should you ever be dissatisfied with your current pay per head, you can always switch over to a new one.  This process typically takes under an hour depending on the number of players.

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