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After the Miami Dolphins beat the New Orleans Saints, pro football handicappers dreamed of a Dolphins’ Super Bowl payout. The happy dreams were from a players’ perspective.
The nightmares of a Dolphins’ payout, Miami was around 80-to-1 at the time, were from a bookie’s perspective. Bookmakers have nightmares all the time. So do gigantic betting organizations like DraftKings and BetMGM.
It takes a single bet to end a bookie business. It takes a single lousy sportsbook bet to send a company like DraftKings’ stock to plummet.
But although DraftKings and BetMGM are in the same boat as individual and local bookies, their risk is much greater. DraftKings has shown tremendous weakness in their stock price during a time when more action has landed on NFL and college football than at probably any point in sportsbook betting history.
At no time has there been as many outlets for American handicappers to place bets as right now, in 2021. The Supreme Court struck down the law that forbade states from legalizing sports betting in 2018.
Since then, BetMGM, DraftKings, FanDuel, Ceasar’s Sportsbook, and others like Penn National have emerged as Wall Street players. Such large companies wouldn't have gotten into the space if the legalization of digital sports betting wasn’t an emerging trend.
But the problem isn't that digital sports betting isn't an emerging trend. The problem is that digital sports betting is an old business.
Online sportsbooks like MyBookie, BetUS, and BetOnline have existed for years. Pay per head companies have also lived for years.
PayPerHead launched in 1997. The company’s bookmaker software has a reputation for allowing individual PPH sports agents to compete with offshore sportsbooks like XBet and BoDog.
Bookmaking software doesn't just allow agents to compete with post-up companies. It also will enable agents to grow and build viable sportsbook companies.
There's competition, and then there's competition
Competition may not be the correct word. No price per head agent will try and compete with an organization like BetMGM. Most sports betting software agents don’t have to because player bases are different depending on the organization.
Players don’t call bookie agents unless they have a relationship with the agent. Relationships are the main reason most online bookie software agents haven’t seen action softness since companies like BetMGM started.
