Every bookie wants to make a profit running his sports betting services. In fact, every operator dreams of making a consistently growing income. But, this is not always possible.
You will have more money in some months and much less in other months. This depends on the sports season and how many clients you have.
Thus, the answer to how much do bookies make is not simple. Instead, it is a detailed explanation and application of various things to help bookies make money. Take a ride with us as we expound on this topic.
How Much Do Bookies Make?
Asking the question “how much do bookies make” when you want to become a bookie is essential. It shows you are an entrepreneur who seriously wants to make money. Yet, we cannot tell you that a bookie makes $3000-50000 or quote any other figure.
But, we can say that a bookie can make anywhere between $5000 and $10,000 per week. Yet, this figure is unsustainable for most bookies. One constant thing is that a bookie can earn as low or as much as possible, depending on how they run their business.
Suppose you have 20 clients who wager an average of $3000 every week, each. Take another bookie with ten clients that spend the same amount every week. You have more chances of making more money than the latter bookie.
Another way to look at this is the number of bets placed by players. Suppose you have 20 clients placing two bets of up to $3000 every week. Consider another bookie with 20 clients who place seven bets across the week for up to $10,000.
The second bookie is likely to make more money. For some reason, the more a player wagers seems to increase how much they lose. For example, a player betting seven times a week is likely to win three times and lose four times.
Fortunately, this is good for you. The player will continue placing more bets to recover the lost money. They might eventually win a large sum of money, but you will have earned huge profits too.
Factors Contributing To How Much Bookies Make
We said earlier that there is no simple answer to how much do bookies make. But, reading this section will bring you closer to the answer. Below are five factors that contribute to how much bookies make.
The Number Of Players Betting
The first factor is the number of players betting. We gave an example above. To stress that, you need to understand that your clients will build or wreck your business. You could have 50 clients, each making one or two small bets.
The Number Of Times Bettors Wager
The second factor is the number of wagers a bettor makes. When you use pay-per-head bookie software, you can use its generated reports to analyze how a player is doing. You can tell if they are a quality client or not.
Suppose the client places ten bets each week. This could be a good client.
But, they are a better client if the collective juice you are earning from him is significant. Remember, you make money from the small juice percentage from each bet. If they place small bets, then your juice is also smaller.
The Amount A Bettor Wagers
A bookie is bound to have budget players and high rollers. Both of these players are important to your business. You can get a huge profit from combining earnings from both players.
Sports Betting Market
Another thing contributing to how much money bookies make is sports. For example, an American football fan is likely to spend more betting on any football team than a baseball team.
For example, they can wager $1000 on their favorite football team and $10 on baseball. Also, a bettor can spend more on their favorite team and much less on any other football team.
Another way to look at this is how much a bettor would wager on a big team. For example, if a bettor feels Manchester City is likely to win against Arsenal, they can place a bigger bet.
Lastly, a bettor’s experience can determine how much you make. For example, a professional bettor will place bets after an in-depth game analysis. They do not make mistakes, and their chances of winning are high.
Even when they place a big bet which could mean a big juice for you, the bettor will win more in a single wager.
On the other hand, an inexperienced frequent bettor will place any bet without much thought. They will keep losing and can sometimes get lucky.
All these factors go hand-in-hand. They influence each other. For example, you can have a professional bettor placing small bets on football matches.
This means you cannot use one factor to market your business. For example, you cannot encourage bettors to bet more alone. Instead, you can encourage them to place more bets, bigger bets, and so forth with promotions and similar benefits.
How Bookies Make Money
The topic on how much do bookies make would be incomplete without covering this section. While the above factors determine how much you make, this section looks at the exact things bookies do to make money.
These points also affect how much bookies make.
Setting The Odds
The first thing a bookie needs to do to earn money is to set odds. The bookie should take advantage of these bets. Usually, you need odds compilers because they are the experts in the field.
Setting odds is a complicated process; the odds compiler has to analyze many things before fixing them. In fact, most odds compilers deal with up to two bet markets because it involves a lot of work. So, if you were to hire odds compilers, you would need a team.
But, you can work with a pay-per-head provider and remove the need to employ odds compilers.
The best odds should reflect the possible outcome of a game. They should also give the bookie an advantage.
Charging A Vigorish
The other thing the bookie needs to do is set a vigorish. A vig can keep changing from one event to another. This is the amount a bookie earns for every placed bet.
A bookie is assured of a profit with vigorish no matter which team wins the game. A vig is embedded in the odds. Once the odds compiler has fixed the odds, they need to consider the bookie’s vig.
Here you will see something like betting on $110 on -110 to earn $100. If this team wins, the bookie will pay the wagered amount plus the profit, minus the vig.
The profit that a winner gets should come from the losing bets.
Balancing The Book
Considering that a bookie pays winnings with the wagered lost money, they need to balance the book to get enough cash to payout. Otherwise, they will have to use his bankroll.
You must have noticed that odds fluctuate up until an event is over. This happens because bookies adjust the odds behind the scenes and balance the book.
A bookie has two options when he has an imbalanced book. They can increase the odds to encourage players to wager on it. The alternative is to decrease the odds that led to book imbalance.
Novice bettors are bound to make mistakes. They are inexperienced and place bets for the sake of it. Some wager to test their skills and their prediction capabilities.
Whichever the case, you could use some bad bettors. One of the reasons that sportsbooks still stand is novice bettors. They wager based on emotions or no knowledge at all.
If your team was beaten last time it was placed by a group that seemed incapable, you are likely to stake a bigger bet without considering statistics.
Bettors that do not follow sports news or consider statistics before placing bets are novices, and you could benefit from them.
How Much Do You Want To Make Operating Sports Betting Services
We have covered all the details about today’s topic, “how much do bookies make?” We mentioned the things that influence how much bookies make and how bookies make money. Once you understand each detail above these tips, you are good to go.
You can launch your bookie today and implement the things you have learned. For example, you can find quality bettors. These bettors place huge bets consistently. You can avoid professional bettors at the first stages of your business.
Once you are stable, you can use professional bettors on your site. Some prominent sportsbooks rely on professional bettors to adjust bets. For example, if a bookie learns that the best professional bettor placed a wager on team A, they will adjust their odds.
Why? The professional bettor relied on statistics and news before placing bets. According to his analysis, team A will win because all evidence points to that.
Start by choosing the best pay-per-head service provider. This will give you the tools you need to market your bookie to attract quality bettors.
Also, you will have good bet markets enticing bettors to place wagers. Contact Power Pay Per Head to get started.