The History Of Pay Per Head

12 June 2022
The History Of Pay Per Head

Every single thing has its inception point, including pay per head industry. So, if you have been asking about the origin of the best sports betting solution for bookies or want to know more about the concept that has changed how you run your business, this piece is for you. Here is the history of the pay per player concept and other lessons that you will find thrilling and helpful.

White Label Sportsbook

The pay per head concept would not exist without white label sportsbooks. The concept revolved around prominent sportsbooks offering sports betting services to smaller bookies. Although different sportsbooks used varying words to describe the service, the concept was a white label.

In other words, prominent sportsbooks gave bookies a new website featuring a similar theme as the original bookmaker. Then, these sportsbooks would charge small bookies a percentage of their revenue.

Usually, bookies pay an upfront set-up fee and a specific percentage of the revenue each month. This allowed small bookies to operate under the prominent sportsbook’s license, brand, sports betting software, and customer support. However, bookie agents did not want to share their profits, leading to the invention of pay per head sportsbooks.

The Beginning Of Price Per Head Sportsbooks

The first pay per head sportsbook was basic. However, it was better than sharing revenues with prominent sportsbooks. Instead of using the white label concept where a bookie paid a monthly commission and set-up fee, bookmakers paid a specific fee depending on the number of players he had.

However, the cost per player was still high because bookies could pay between $40 and $65 for every player wagering on their platform. Another issue that faced this concept was reliability.

Considering that the PPH technology was still in its infancy, sportsbooks would go down during busy seasons and weekends. Bookies would lose clients to prominent sportsbooks that afforded better technology, ensuring 100 percent system up-time.

Former sportsbook employees invented the pay per player concept. Unfortunately, they did not have enough money to invest in better technology like their former bosses. Therefore, you could still find some gaps, especially in the technical and managerial parts of the operations.

Most operators invested in their former sportsbook’s ASI software and added a simple website and betting interface to complete the package. While some brands did not perform well, others stayed and continually improved the software, technical aspects, and overall infrastructure.

However, it took several more years before bookies could get control over their players. Bookies needed to contact their price per head providers to get anything done.

The Newest Pay Per Head Version

The price per head industry has come a long way since its invention over 25 years ago. While bookies did not have a chance to compete with prominent sportsbooks 20 years ago, the narrative is different now.

Ideally, there is no difference between today’s price per head bookies and conventional sportsbooks. In fact, pay per player bookies have a better competitive edge than some traditional sportsbooks. This comes following many changes over the years that allow PPH bookies to have similar features and tools as prominent sportsbooks.

Here are some of the elements you will find in the newest version of price per player sportsbooks:

1. Sports Betting Markets

Sports betting markets are the main ingredient of a sportsbook. Therefore, it is obvious that even traditional PPH sportsbooks had sports betting markets. The difference is that today’s sportsbooks can host over ten sports betting markets.

This would mean more traffic as more players wager on different sports. Yet, the sportsbook software is designed to withstand all action during off and on-season.

2. Custom Website And User-Friendly Betting Interface

Bookies started by using another sportsbook’s brand to offer their services. This left bookies with little to nothing to customize. Today, a bookie can use a website design of his choice.

Even bookies that choose betting templates have an option to customize various things, including skins and players’ profiles. The best part is bookies can still ask for a tailored sportsbook website featuring specific tools, color, themes, layout, and other details.

Another improvement of the website is user-friendliness. Today, the website is more user-friendly compared to years ago. Moreover, the website is optimized for desktop and mobile devices.

3. Technical Support

You might lack the technical skills or money needed to maintain an online sportsbook. Fortunately, the right price per head shop has a team of experts ready to address any technical issue your platform might face.

The engineers work around the clock identifying bugs and possible hitches and rectifying them before they start affecting your operations. Moreover, bookies do not have to spend more to hire technical experts.

4. Customer Service

Today, pay per head sites also offer customer service. Although not all shops offer this service, premium sites such as Power Pay Per Head provide customer service to bettors and bookie agents.

Bookies do not need to be available around the clock to pick up their clients’ calls as PPH sites have trained customer agents to solve their issues. Meanwhile, a bookie agent can contact a dedicated account manager for solutions or support.

5. Live Betting

With the rise of live betting, some price per head companies have invested in the technology. This allows bookies that could not afford to offer bets on ongoing events to provide their clients with these markets at a lower price.

While some sites charge extra for live betting features, others do not. Yet, bookies still afford the extra cost.

6. Player Control Features

Bookies had no control over their players during the first few years of the price per head concept. However, things have changed today because all PPH sites let bookies have complete control over their players.

That way, bookies can customize players’ accounts, adjust wager limits, decide which markets a player can wager on, and so much more. Having control over players allows bookies to run their operations more efficiently.

7. Virtual And Live Dealer Casino

Today’s bookies can also offer live casino games courtesy of new software from pay per player sites. Notably, bookies do not need a different platform to offer casino games. Instead, players can log in to the same sports betting platform, open the casino tab, and start placing.

This brings players closer to real-life casino gaming experiences from the comfort of their homes. Meanwhile, bookies can make more money from players wagering on roulette, blackjack, blackjack, poker, and slot machines.

8. Racebook

Another new feature added to the pay per head package is racebook. Some sites focus on tracks within a state, while others feature over 220 tracks worldwide. Ideally, your clients can follow horse racing throughout the year, following their favorite horses as they move up the ranks.

9. Low Cost

The industry has also transformed regarding the cost per player. While the minimum bookies could pay was $40, the price has been reduced to $3, $5, and $10 depending on the company offering the services. Some sites do not charge any amount for the first few weeks, allowing bookies to familiarize themselves with the features, tools, and services offered.

The pay per head industry has come a long way. With new technology inventions, you can expect to see even better features and services offered by different sites. The point is that the industry has so much to provide bookies with, and you can take advantage of the new tools and technology to make your bookmaking worthwhile.

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