How much do you know about being a bookie? Being a bookmaker is now more than the illegality portrayed in various movies. Today, you can become a bookie and run a legal sportsbook.
In this guide on being a bookie for dummies, we will cover everything you need to know about the business. We will start with defining the term, bookie’s responsibilities, and simplify other details about bookmaking.
Being A Bookie For Dummies: What Is A Bookie?
We will start this being a bookie for dummies guide by defining what a bookie is. That way, you understand everything else as you continue to read.
A bookie is a person or firm that books a sports bettor’s wager. Think of this person as the travel agency that books your travel ticket, hotel suite, and facilitates all other related details. A bookie works the same way.
A bookie uses a platform similar to the usual sportsbooks you know. Usually, this platform belongs to a third party, also called a pay per head provider such as Power Pay Per Head. Although the platform belongs to a third party, the bookie is given all control by the service provider for a weekly fee.
The word bookie is simply a casual name for a bookmaker. In this article, we will use other terms such as operator and bookmaker in place of a bookie.
How Does Bookie Operate And Earn Money?
We will look at this being a bookie for dummies guide and how bookies operate. Bookmakers take bets, book them, and then pay winners.
For example, if a player places a bet on team A and wins, the bookie will return the wagered amount plus profit. This would mean that the bookie earns nothing. But, just give it a second.
A bookie must create the odds of an event. Suppose Manchester United is playing against Tottenham. The bookie must consider the probability of each team winning.
Then, he can adjust the odds to include his profit, also called commission, juice, vigorish, or vig. We mentioned that bookies operate like travel agencies. So, their means of making money involve charging a fee for facilitating placing bets for their clients.
Charging the vigorish ensures that a bookie earns money whether team A or B won or lost. The outcome of a game does not affect the bookie.
But, a sports betting operator must balance the book to ensure the game’s outcome does not affect his earnings. Suppose more money is wagered on one side than the other. What would happen if that team won the game?
The bookie will have to pay all the winnings. Unfortunately, the money wagered on the other team could not be enough to cover profits for the winners on the winning team.
Therefore, you would need to use your savings to cover the loss. If you do this several times, you will soon have no savings.
A bookie must master the art of bookmaking to make money. How?
Creating Odds And Taking Advantage Of The Vig
A bookmaker cannot control which team wins. But, he can control how much they stand to win.
Your goal as a bookie is to make more money than you will pay. The first step to doing this is setting odds.
Bookies offer bets on a win or lose situation. This means each team has a 50 percent chance to win or lose. But, some teams are more skilled than others, which gives them more advantages.
This is something both the bookie and the bettor know. The bookie has to create odds that encourage bettors to wager even on the less skilled team. Instead of offering the true odds on the outcome of a game, they adjust it.
So, initially, an odds would look like 2.00 in decimal, +100 in moneyline, and 1/1 in fractional odds. So, a bettor that wagers $10 and wins will get $20 inclusive of the profit and wagered money. This leaves a bookie without a profit.
That is where vig comes in. The vig is a way of ensuring the bookie is making a profit regardless of the outcome. So, instead of using 2.00 (+100, 1/1), the bookie adjusts the odds to 1.9 (-100, 10/11).
So, if a bettor places a $10 wager at 1.9, he will get $19.09 inclusive of the wager amount and profit. If 50 players place bets on team A and another 50 on team B, the bookie will collect $1000. If team A or B wins, the bookie will pay 19.09*50, which is $954.50.
This leaves the bookie with a profit of $45.50. This looks like 4.5 percent vig, which is within the standard of what bookies earn. Some bookies increase the vig to up to 13 percent. Remember, the odds cannot always be 50/50.
Thus, bookies set odds accordingly. Moreover, they have to adjust the odds to balance the book continually.
Using Bettors’ Weaknesses
While it sounds a little wicked, this is part of bookmaking. Bookies do not set their odds based on emotions. They calculate and use statistics. Unfortunately, most bettors place bets randomly or for fun.
They guess which team will win without considering statistics. Most wager on a team because it is their favorite and not because it is the best team over the other.
Eliminating Possible Risks
Working in the gambling industry is by itself taking a risk. Fortunately, it is a rewarding risk. This being a bookie for dummies guide would be incomplete without telling you that you can minimize risks.
That way, you can never lose your profit, no matter how low the stakes are. The first thing you do to eliminate or minimize risks is adjust odds as the game progresses.
For example, if players are placing more bets on one side, you can increase the odds on the other side to encourage more bets on it. Sometimes you can close a bet market, preventing any further bets either on one side or both.
Another way of minimizing risk is using a layoff account to place a bet in another sportsbook. For example, when a player places a big bet you cannot afford to pay, you can wager the same amount in another bookie.
Then, you can use the winnings to pay the big bet. If you lose, so does your player because both of you placed the same bet. So, the player’s money will cover your losses at the second sportsbook.
Lastly, you can manage your players’ accounts. This involves setting bet limits, the maximum payout, and so forth. That way, you control how much a bettor wagers and wins.
You can look at your bankroll and determine how much you are willing to risk. If you are working with a small bankroll, you will need to reduce the payout for individual players.
The other thing you need to learn about being a bookie for dummies is that you need bookmaker software. Here, we assume you want to operate an online bookie and not the traditional pen and paper kind of business.
So, you need sportsbook software. Big companies buy sportsbook software and employ their team of IT experts, odds compilers, and other experts to run business. If you want to take this direction, you need significant capital.
But, there is no need to spend all your money when you can use less and get similar quality. A pay per head bookie software is a convenient and cheaper way of entering the sports betting industry.
The bookie software is part of the pay per head service package. Moreover, the service comes with bookmaking tools, experts, and skills.
The provider acts as your partner. For example, when you get your bookie software from Power Pay Per Head, you get a team of experts with 16 years of experience in the betting industry.
You also get odds compilers, customer representatives, and everything regarding bookmaking. If you have never operated a bookie before, you can rest assured that oddsmakers are creating your odds, IT experts maintaining your site, and all that business.
A bookie needs clients to make money. You cannot become a bookie without clients. Therefore, before you launch your bookie software, find several clients.
You can start with a few friends, family, and referrals. Some pay per head providers might require you to have a certain number of players before subscribing to their services. So, enquire about it.
Launch Your Bookie
There you have it, the best being a bookie for dummies guide. We defined the term bookie followed by his responsibilities. We also shared some secrets on how bookies make money consistently.
Now that you have all the information about being a bookie for dummies, it is time you become one. Launching your bookie business is easy. You need the right partner, and your business is set for success.
At Power Pay Per Head, we guide new bookies to fruition. We help them launch their platforms and give them tools to market themselves.
For example, if players see you have good bet markets, competitive odds, safe and convenient payment methods, and 24/7 customer support, they find answers to their needs and join. So, contact us today for personalized guidance towards being a bookie.