There is an expression that indicates that it is impossible to meet a poor bookie. While the statement might be true, bookies’ wealth does not come easy. That is why the answers to “how much do bookies make a year” vary.
Bookies make their money from players’ lost wagers. However, this is just one way a bookie can make money. Moreover, it is not a reliable way to make good profits annually.
Another way bookies make money is by adjusting the odds to include their commission. This ensures that a bookie makes a profit no matter which side of a game loses. However, the ultimate factors determining how much do bookies make a year are two, as we are about to explore below.
The Size Of A Bookie
The first factor that affects how much do bookies make a year is the size of the betting business. For example, if you operate in a populated area, you are likely to offer your services to more people compared to a bookie working in a small region.
Suppose you have 100 active clients weekly while another bookie has 50 active clients. Considering that you have more players wagering weekly, you will make more money than the latter bookie.
For example, if your players bet an average of $110 each, you will get an $11,000 handle. Suppose players from the other bookie make the same wager of $110 each. The bookie would make $5500.
This is half what you make. Assuming that your books are balanced, you will still make more money. How?
If your commission is $10 for every bet, you will earn $1000, while the second bookie will make $500. Suppose you make $1000 every day throughout the year. Your total earnings would be $364,000 in a year, while that of the second bookie would be $182,000.
In other words, if all other factors are constant, you would make more profit from your 100 players compared to the bookie with 50 or fewer players. What does this mean for you?
Recruiting more players should be your ultimate goal. This will increase the size of your bookie and, ultimately, your profits in a year. Usually, some of your clients will come and go.
Therefore, you need to continually recruit more players to replace those leaving. Suppose your goal is to earn $500,000 every year. You could recruit more players to help you reach your target.
While at it, you need to consider that players do not wager the same amount. Therefore, you will need to analyze your players betting activity to determine whether to recruit more players or encourage existing players to wager more.
How Much Bettors Wager
The other factor that determines how much do bookies make a year is the amount that players wager. Suppose you have 100 players wagering $10 every day for a year while another bookie has 50 players wagering $50 every day for a year.
While you have the most players, your profits will be less than the other bookie. This is because your players wager much less, leaving you with a small handle and ultimately profit.
Having more players is not a guarantee that you will make good profits. If those players place small bets, you will make much less than players placing bigger bets with another bookie. Therefore, it is crucial to balance your books.
In other words, if you have 100 players, you need to motivate them to place bigger bets or wager more in a week. Suppose all your players wagered an average of $100 every day. You might not need many players to reach your yearly target.
Consider a small-time player wagering $50 per bet ten times a week. This player will likely win 50 percent of the time and lose the other 50 percent of the time.
Now, factor in the bookie’s commission of 10 percent on every wager. The bookie would make $200 a month. How?
When you multiply $50 by 10, you get $500 weekly and $2000 monthly. Subtract a 10 percent commission, which is $200.
Suppose you have ten players placing $50 wagers ten times a week. You would make $2000 on commission alone.
If your yearly target is to make $500,000, you would need 250 players wagering a minimum of $350 a week throughout the year. However, getting 250 active players might be difficult, which means you need another solution to earn your targeted amount.
Suppose a player wagers $1000 weekly, and your commission is 10 percent. You would make $100 profit from one player.
If you had 20 players placing $1000 each weekly, you would make $2000 a week and $8000 a month. This would amount to $104,000 in a year.
When it comes to answering how much do bookies make a year, the size of a bookie and the amount of the placed wagers go hand in hand. Based on the above example, you would need to increase the number of your players and high rollers to reach your target.
If you focused on one factor and ignored the other, you would have to work extra hard. In fact, it might be draining, and you might give up on your operations. Therefore, it is essential to balance the two factors.
So, if you have players making small wagers, you can encourage them to wager more. How?
Offering More Sports Betting Markets
If you only offer bets for popular National Basketball Association events, you need to reconsider your offerings. You can decide to offer all the bets throughout the league. The same applies to other sports.
You also need to add more sports to your catalog. If you offer bets on soccer, you can add more sports, including football, baseball, tennis, golf, basketball, cricket, and others. This will encourage players to stay longer on your platform, finding other interesting events to wager on.
The more they wager, the higher your commission will be. Consider your players’ interests when choosing sports betting markets to add to your platform.
If you take more than a few hours to process players’ winnings, you need to change that. Players love it when a bookie releases their winnings immediately after bets are settled. They should be able to request withdrawals and get their money within the same day.
Unfortunately, some bookies take days to process players’ money. This worries most players as they feel that a bookie lacks enough money.
Therefore, it is crucial to have a bankroll that can support your players. This will help you pay your players immediately after a bet is settled.
Another way that could help you reach your goals is by offering bonuses. For example, you can offer a welcome bonus and impose a wagering requirement.
This will encourage players to wager more to meet the wagering requirement to withdraw their bonus funds. Remember to work with an expert when creating bonus programs for your clients.
Several other factors determine how much do bookies make a year. For example, American players are likely to wager more money on an NFL game than a soccer match. Also, a player might wager more on a team that is highly likely to win than a team with a 50 percent or less chance of winning.
The point is that there is so much that contributes to how much do bookies make a year. However, the two primary reasons include the size of a bookie and the amount wagered by players. If you can work with these factors and consider the rest while at it, you can make good profits in a year.