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Gambling911.com looks at the math behind running your own bookie business
Since most bookies run their betting shop out of their home, we will assume that the operational cost will be $3 per player, the price per player per week at AcePerHead.com
Starting your own sports betting business is one of the most exciting entrepreneurial moves you can make — but it’s also one that requires serious planning, the right tools, and honest advice from people who have seen both the wins and the pitfalls. If you’re thinking about how to create a bookie operation from the ground up, this guide is designed to walk you through the fundamentals with the clarity and depth the topic deserves.
Below, we look at the math behind running your own bookmaking business.
Basic Assumptions for the Estimations on how much money is needed for becoming a Bookie
- Type of Bookie – Credit Shop
- Number of Player: 25
- Operating Costs: Since most bookies run their betting shop out of their home, we will assume that the operational cost will be $3 per player
- This is based on using the AcePerHead.com Bookie Pay Per Head Service for a total of $300 Per month.
- Player Credit Limit: $1,000
- Max Bet Allowed: $500
- Bonuses: none
- Banking Costs: 5% Banking Fees
- Estimated Monthly Turnover: Total amount of money wagered every month by all players
- (Number of players x (credit limit x Max bet/100)) x 5 = $125,000
- When do you settle up – end of each month
- 50/50 Action – You have excellent line and you have 50% action on both sides of each wager
- Vig/Commisssion – 10%
Bookie Profit/Loss for a Regular month
- 50% of the players get a payout that average 65% of their credit limit ($8,125 )
- 50% of the players that lose, average a loss of 85% of their credit limit($10,625)
- your monthly fees are $1,437
- Your Vig/Commission is: $5,312
This means that you end up with a profit of $6,375
Bookie Profit/Loss for a Bad Month
- 50% of the players get a payout that average 175% of their credit limit ($21,875)
- 50% of the players that lose, average a loss of 65% of their credit limit ($8,125)
- your monthly fees are $2,000
- Your Vig/Commission is: $4,062.5
This means that you end up with a loss of $11.687.50
Your Weekly Fee
AcePerHead.com charges as low as $3 per player per week. This represents a huge savings if you had to incur all this overhead yourself. Consider what it would take to hire an actual oddsmaker and you get some idea of the cost effectiveness. Maintaining a server alone is extremely costly as we here at Gambling911.com can attest to.
- Tony Caliente, Gambling911.com
