The History of Pay Per Head: Running a Sportsbook Is Now More Manageable

12 June 2022
The History of Pay Per Head Running a Sportsbook Is Now More Manageable
The History of Pay Per Head Running a Sportsbook Is Now More Manageable

Running a sportsbook has not always been easy as we know it today. Small bookies operating under the white-label concept had little to no control over their operations. Thankfully, the invention of pay per head has helped bookies take complete control over their businesses and earn and keep all their profits.

The Inception Of Online Betting

Pay per head industry would never have existed before online betting. Therefore, it is essential to understand the beginning of online betting to connect it with pay per player.

It goes back to two soccer teams that played the FA Cup replay in 1996, whereby Everygame sportsbook took $50, the first-ever online bet on Hereford United and Tottenham Hotspur. This marked the beginning of online sports betting, leading to the launching of many other sportsbooks.
Since that first experience, millions of bettors started wagering online. Meanwhile, technological advances and innovations continued allowing more people to venture into the online betting business. Unfortunately, not all entrepreneurs can invest in an online sportsbook and operations.

The Invention Of White Label Sportsbooks

For bookies unable to launch their independent online sportsbooks, a viable solution emerged in the form of white-label platforms. Prominent global sportsbooks extended these platforms, enabling bookie agents to present sports betting options to their clientele using their own brand identity.

In essence, bookies operated sportsbooks under the licensing of established sportsbook entities. Typically, they utilized distinct websites, albeit with limited control. However, this approach entailed the payment of both a setup fee and a recurring monthly commission.

This arrangement often left bookies dissatisfied, as a substantial portion of their earnings had to be shared with larger sportsbook counterparts. For instance, scenarios were not uncommon where bookies relinquished 30 percent of their overall monthly revenue. Fortunately, a new perspective arose, recognizing the potential to furnish bookies with superior sports betting services at a reduced cost.

Here Comes The Pay Per Head Industry

Many companies insist they are the first pay per head service providers. Unfortunately, there is no way of proving who came first. It is even possible that the first site offering pay per player services no longer exists.

However, the industry has come a long way. It dates back to the late 90s. The pioneers were former sportsbook employees who came together to create independent solutions for bookies. Their goals were simple, including,

  • Allow bookies to venture into online venues without operating under another brand.
  • Sharing their revenue with already-established sportsbooks.
  • Give bookmakers more control over their business.

While this concept was still new, running a sportsbook was much better. Bookies enjoyed running operations, had more control over their players, and kept most of their earnings.

Thanks to technology, the pay per head industry has continually changed. Here are some improvements that have made running a sportsbook possible for aspiring entrepreneurs;

1. Mobile Compatibility

When the pay per head industry launched, players and bookies had to use their desktops to log in to a sportsbook account. Unfortunately, a player could not wager on the go, and bookies could not operate their betting business from anywhere. Instead, they had to wait until they could access the internet and a desktop to complete various tasks.

Today, a player can choose to wager on a phone, tablet, or desktop. Developers create cross-platform websites allowing bookies and players to use their preferred devices to access the platform. This gives small bookies, and big-brand sportsbooks a similar playing ground as both can afford a platform optimized for each device, whether it operates under iOS, Android, or Windows.

2. Safe And Convenient Payment Methods

Only a few online payment brands could process gambling money 20 years ago. Bookies had to rely on the Western Union, e-checks, and a few other options.

Today, online payment method processors are still picky. Most refuse to partner with bookies, especially those operating in America, to avoid various regulations. Fortunately, bookies do not have to find and partner with multiple payment methods.

Instead, they can work with a pay per head site that has partnered with several safe and convenient payment methods. Your players can deposit their funds and withdraw their winnings with options such as Bitcoin, e-wallets, gift cards, Ethereum, and others. Also, you can pay the cost per player to your provider through the same payment methods.

3. Online Casino

Players no longer have to drive to the nearest casino to socialize and play casino games. With online casino games and live dealer titles, players can log in to their accounts and start playing.

The best thing about all this is that bookies do not need to partner with game developers. Traditional sportsbooks must partner with individual game developers, including Evolution Gaming, NetEnt, and others. Moreover, these developers must have a license to offer their games in your jurisdiction.

However, the pay per head sites have ensured you do not have to go through the hassle. Instead, they offer in-house and exclusive games from world-known casino game developers. That way, running a sportsbook can never be complicated, especially when acquiring new casino games.

4. Call Center

Efficient customer support is indispensable for the successful operation of a sportsbook. However, investing heavily in call center technology or personally attending to client calls nonstop presents significant challenges.

Choosing between draining financial resources on call center technology or enduring ceaseless client calls yourself can transform sportsbook management into an arduous ordeal, leaving you without respite.

Thankfully, a viable solution exists through the expertise of trained customer representatives available at a pay per head shop. Their assistance alleviates the burdens of managing customer interactions, rendering the task of overseeing your bookie business considerably more feasible.

5. Player Account Management

Unlike before, bookies can now manage their players’ accounts. This gives bookies more control over their operations. For example, if you feel some clients are taking a toll on your bankroll, you can lower their wager limit.

Ideally, the pay per head industry has taken control that white-label sportsbooks did not have and given it to pay per player bookmakers. In other words, bookies can open or close a player account, edit betting lines for specific players, and edit credit limits. Moreover, you can create a specific betting line for your VIP players.

6. Bookie Reports

Your sports betting operation cannot do without reports. Thankfully, your pay per head site will provide you with bookie reports that you can use to check different areas of your operations. Notably, these reports are presented in a format you can easily understand, which makes running a sportsbook for a new or experienced bookie bliss.

7. Custom Website And Improved Sportsbook Software

It would be best if you had a website and sportsbook software to take your sports betting business online. You do not have to use a white-label sportsbook website. You can get a tailor-made sportsbook website featuring your preferred layout, colors, functions, and much more.

You can also use a pay per head sportsbook software at a fixed price for a specified period. Notably, your provider will continually update the software at no extra cost. That way, you can use updated software and operate on the same ground as big brands.

8. Betting Lines For Your Bookie

Do you know how to create odds and adjust lines? When you partner with a pay per head site, you do not have to know how to create odds. The company’s oddsmakers create lines in time and continually adjust them to ensure a bookie is making profits.

Sports betting would not be where it is today without the pay per head industry. Pay per player sportsbooks have brought closer sports betting opportunities. Therefore, if you feel that your local would benefit from your sports betting services, consider running a sportsbook with pay per head service.

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