If you’re interested in “Being a Bookie for dummies,” you may be surprised to learn that it’s no longer just the illegal activity depicted in movies. Nowadays, becoming a bookmaker can mean running a fully legal sportsbook. So, how much do you know about this topic?
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, and the bookie’s responsibilities, and simplify other details about bookmaking.
Being A Bookie For Dummies: What Is A Bookie?
In this “Bookie for Dummies” guide, let’s begin by defining what a bookie is. A bookie, short for the bookmaker, is a person or firm that accepts and manages sports bets placed by bettors. Similar to a travel agency that handles travel arrangements, a bookie takes care of the betting process for sports enthusiasts.
To facilitate the betting process, a bookie uses a platform, which is typically provided by a third-party company known as a pay per head (PPH) service provider, such as Power Pay Per Head. This platform allows the bookie to offer various sports betting markets and manage all aspects of the betting business.
Even though the platform is owned by the PPH provider, the bookie retains full control over the operations, including setting betting lines, adjusting odds, managing player accounts, and more. The bookie pays a weekly fee to the PPH provider for using their platform and services.
Throughout this guide, we may interchangeably use terms like bookie, operator, and bookmaker to refer to the person or firm offering sports betting services.
By understanding the role and functions of a bookie, you’ll be better equipped to explore further topics related to the betting industry. So, let’s continue with our guide to help you grasp the fundamentals of becoming a successful bookmaker.
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, the 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
Indeed, bookmaking is a business that requires objective decision-making based on statistics and calculations, rather than emotional attachments or random guesses. Bookies must approach odds-setting and risk management with a strategic mindset to ensure profitability in the long run.
While bookies rely on data, statistics, and expert analysis to set odds, many bettors place wagers based on personal preferences, emotional connections to teams, or for recreational purposes. This contrast in approach is what creates an opportunity for bookies to make money.
Professional bookmakers carefully consider various factors, such as team form, player injuries, historical performance, and other relevant data, to establish accurate odds that reflect the likelihood of different outcomes in a sporting event.
On the other hand, casual bettors may place bets without delving into the same level of analysis, which can lead to less informed or even impulsive decisions. This difference in approach often results in bookies gaining an advantage and making a profit in the long term.
Understanding the dynamics between bookmakers and bettors is essential for any aspiring bookie to succeed in the competitive sports betting industry. By maintaining a rational and data-driven approach, bookies can build a profitable business while catering to the diverse preferences of their clients.
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 the 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 on 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 the business. If you want to take this direction, you need significant capital.
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 toward being a bookie.