More and more people realize that becoming a bookie is like venturing into any other business. It has its ups because you make money and downs when the market is slow. Like any other business, you must ask yourself how much bookies make in a year.
Looking back to 2020, the pandemic affected many businesses, including the gambling industry. When businesses started recovering, the sports betting industry was at the front line bouncing back to the top as nothing had affected it. Bookies that used sports betting software had no trouble surviving during the pandemic.
For starters, bookie agents did not have to pay a maintenance fee or any other fee because there were no sports events, thus no bet markets to offer. Usually, a bookie agent pays a per-head fee depending on the number of bettors that placed a bet during the week. There were no sports events, so there was nothing to bet on; thus, no pay per head fee was required until August 10, 2020.
The few months’ breaks for sports gave bettors a chance to experience other betting forms, including live dealer casino gaming, digital casino games, and racebook betting. So, no matter how you look at it, there is a way of making money as a bookie. At one time of the year, bettors will flock to sports betting and other forms of betting when major sports take a break.
Should a Bookie Set a Revenue Target?
When venturing into a business, it is important to envision the desired earnings within a specified timeframe. Depending on the nature of the business, various factors, and the scale of operations, setting targets on a daily, weekly, and yearly basis can be valuable. Business owners must then diligently track inventory and manage their operations to assess whether they are achieving the targeted revenue.
Similarly, as bookie owners, it is essential to establish revenue targets. Starting with a weekly plan before formulating a yearly target can provide a focused approach to your business. Working towards these targets instills a sense of seriousness and commitment to your bookie enterprise. It enables you to evaluate whether additional marketing efforts are needed or which tools and strategies should be employed to reach your desired revenue goals.
By setting revenue targets, you gain a clearer understanding of the trajectory of your business and can make informed decisions to drive its growth and success. Regularly reviewing and assessing your progress against these targets allows you to adapt your approach, identify areas of improvement, and take the necessary actions to achieve your financial objectives.
How Do Bookies Make Money?
A bookie makes money by taking a share from wagers that players make called vig. While winning players get more money than they wagered, it does not come from the bookie’s pocket. Instead, it comes from the money lost by losing bettors.
Thus, a bookie must balance all sides of a wager; otherwise, it will win more than losing bets. Then, the bookie owner will have to go back into his pocket to pay out winnings.
The bookie has to take its share of the winning and pay its sports betting software provider. The fee is dependent on how many play at the sportsbook.
For example:
- Ten players bet at a sportsbook in the first week of the National Football League (NFL)
- According to a pay per head provider, the bookie has to pay $10 for each player
- That brings to a total of $100 per week
Thus, the overhead for the bookie with ten active players is $100 each week. That means the bookie has to make at least $100 profit to manage their weekly fee. A bookie can divide the weekly fee into daily revenue, monthly, or the most common type, seasonal revenue.
A bookie can collect seasonal revenue by focusing on a specific season with the best betting action. For example, a bookie can focus on the NFL season and get revenue in a whole year, offering other forms of gambling.
How To Calculate Bookie’s Seasonal Revenue
There are two ways of calculating seasonal revenue.
a. Going off past players’ habits
b. Predicting future revenue
A bookie can use either or both of the methods.
The first method involves looking at players’ reports. With sports betting software, you can quickly get these reports without any hassle.
A bookie agent can look at the previous season’s player report to predict how much they could make in the coming season. For example, if player A spent $100 every time his favorite team played, you can multiply the money by the number of times the team played. So, if Denver played 16 regular games, player A must have spent $1,600.
Then, you can calculate the fee the player would generate. Usually, you should predict 10 percent. That means you need to take off $160 from $1600, which is 10 percent of the money spent.
The other method involves predicting how much a bookie can make during the following season. Assume a bookie with ten players will make $100 each week during the 17-game NFL Regular Season. this means:
- The bookie generated $1000 in revenue each week
- For 17 weeks, the bookie made $17,000
- When you multiply the revenue with 10 percent juice, the bookie gets a $1,700 profit
- Then, you need to subtract fees for the sports betting software
During the seasonal period, the bookie will have made some profits. Considering a bookie can get more than ten players each week, this profit could go even higher. Moreover, there are other things to consider.
For example, more players will flock to your sportsbook to make bets for the NFL playoffs, the college football National Championship, and the Super Bowl. Other sports that would attract huge revenue include Major League Baseball (MLB), National Basketball Association (NBA), NCAA Men’s College Basketball Tournament, live and digital casinos, horse racing, and other non-traditional options such as U.S Presidential Election, politics, and T.V.
How Much Do Bookies Make With PPH Software?
The amount of money you can make with your bookie depends on how much you want. You can calculate how much you will make as long as you understand your players by looking at their reports. If you have live dealer and racebook platforms, you can look at players’ performance and calculate your possible revenue.
At Power Pay Per Head, we can help you move your players to a digital platform. You can start with a free trial period to test the product before subscribing. Our sports betting software is comprehensive and easy to use.
