How Much Money Do I Need to Start an Online Sportsbook?
In this tutorial we learn how much money is required to run a sportsbook based on the number of players and the maximum amount wagered on average.
According to PricePerPlayer, 10 to 20 players with a maximum bet limit of $10,000 will require $50,000 on hand.
If that's out of your budget, $300 or less max bet limits per game will require much less money in the bank to cover this same number of players.
"Like any other business, you will need to secure enough funds to get started," Mitchell from PricePerPlayer.com points out. When it comes to sports betting, a "good rule of thumb is to have enough money to cover unexpected gambling losses through an entire season."
Pay Per Head companies like PricePerHead reduce virtually all costly overhead, so that the $5 per active player per week they charge is mere peanuts. Assuming you have 20 players active all 18 weeks of the regular NFL season, the cost to you is $1800 for that period of time. This amount covers the contract employees overseeing customer service and oddsmaking as well as your customized website maintenance. It's always a good idea to have a trusted assistant on hand who reports directly to you.
To be clear, one of the highest costs involved in running the Gambling911.com website (the one you are reading now) involves a dedicated server and bandwidth. Our traffic, which is strictly media, will eat up more bandwidth than any local bookmaking business that operates online, but the amount of data inputting, reporting, live in-play betting involved with running a gambling site requires a dedicated server that will cost more than our own. That's assuming you were opting to run a sportsbook without a Pay Per Head service. The great thing about using a PPH platform is you'll be part of a shared server space. That $1800 in 18 weeks is a pittance of what Gambling911 spends on its dedicated server and bandwidth alone, keeping in mind again we are mere content.
Like with any business, there are upgrades that may cost additional. These are generally added on as your business grows. This could include such things as a race book or a live dealer casino, maybe more extensive reporting or prop offerings.
Much of the marketing will involve simple word of mouth. This costs virtually nothing.
And congratulations if you happen to live in a state that already regulates sports betting. A number of these states promote heavily with the use of billboards, radio and TV ads. Eventually gamblers begin to realize that all their winnings are reported. The anonymity factor with local bookmakers cannot be overstated. Why on Earth would you want your man knowing how much money you're winning betting sports? If you have an account open with FanDuel and he happens to file for divorce, those winning bets become a matter of public domain in the courts, and guess who's paying more in child support.... that would be YOU.
And did you know that half the US states that offer regulated sports betting don't all wagering on their own in-state schools?
Another draw: Most college aged individuals are unable to bet at these regulated books whereas locals will welcome those 18 and up.
Check out the tutorial for more info from our friends at PricePerPlayer.
Learn how to be a bookie in 5 easy steps with our latest how to video, https://t.co/DQRWqBjcrn
— Price Per Player (@priceperplayer) December 1, 2021
- Aaron Goldstein, Gambling911.com
