Since the legalization of betting in the U.S. in 2018, the bookmaking industry has gotten more saturated, with new businesses opening every day. If you plan to become a bookie, you need to understand how the industry works and the principle behind bookmaking.
Bettors place their bets using the bookmaker’s website, and if they win, the bookmaker gives them a payout. On their customers ‘ bets, a bookie charges an operation fee, also known as vig. A collection of vigs helps most bookmaking businesses run when the bookie is experiencing losses.
Although bookmaking has been associated with unlawful activities, the industry is now booming and has become a venture for many. It is crucial for you to do extensive research before starting your bookmaking business. Listed below are three easy steps to become a bookie.
Save Up On Starting Capital
Like every other business, bookmaking requires substantial capital to start. To become a bookie, you will require money for rent, license, payroll, and other utilities.
You will be required to pay wagers every time a bettor wins money. You require a cash reserve you can rely on when your business is not doing well.
Advertisement for your business also requires money. Money is a primary denominator, whether you decide to advertise the business yourself or hire a marketer.
Most businesses are relying on technology for the online market. You will often need services from SEO specialists and content creators, and you will need to pay them.
The betting industry is saturated, and therefore, you will need to develop new methods to attract customers. One of the common methods is by offering bonuses and incentives. The bonuses can be from the profit, but you will have to get the money from your backup reserve when your business is down.
The more money you have in bookmaking, the better your position in the market. If you want your business to start well, you have to put more effort into our starting capital. Your clientele will determine the amount you need.
If you are looking to have casual players, about $5,000 is a good starting capital, but if you are going for professional players, you will need about $10,000. However, if you do not have much experience in bookmaking, you ought to start with casual players and give your business time to grow as you gain experience.
As a bookie, you can give credit to bettors. However, you have to consider the credit history of the bettor and ensure the customer can pay his debts and not commit fraud.
Giving credit to bettors is a risky move since you are more prone to losses, and at times you will find yourself going back to your savings account to support your business.
Get A Valid License
Although sports betting is legal in the U.S., some states still prohibit bookmaking. If you are planning to become a bookie, you will need to do extensive research on the laws of the state you are in.
Most states have official websites. You can go on this website and learn about bookmaking rules and licensing or visit their offices.
Alternatively, you can hire a lawyer who specializes in iGaming. A lawyer is the safest option since they are more equipped and can stand by you if you find yourself on the wrong side of the law.
After confirming the legality of bookmaking in our state, follow the proper channels to acquire a license for your business. Your lawyer will advise you on the best offshore license for your business. Ensure you stay updated since the sports betting laws keep on changing.
Business licenses and permits require renewal from time to time, so make sure you renew your license. To become a bookie, you need to clear with the IRS by paying your taxes well and on time and ensuring all your workers are well documented and working legally in the states.
With a gambling license, you will be able to operate legally in several international jurisdictions and conduct business with major payment providers and merchants. A license will help you open a legal settlement account in various areas, and you will also stand a chance to enjoy tax benefits such as low tax rates or zero tax.
With a license, you can land fantastic marketing deals or get sponsors to support your business. Bettors will feel more at peace working with a licensed bookmaker, and in case of any fraudulent activity from the gamblers, you can freely report it to the authorities. With a valid license, you won’t have any trouble developing an app and putting it on the Play Store or iStore.
Choose A Favorable Bookie Software
To become a bookie in this digital era, you require viable software. The days of saving your data on papers are long gone. The software protects your business from data theft and loss through a multifactor authentication process and cloud-saving.
Most bookmakers prefer the pay-per-head software plan offered by companies such as Power Pay Per Head. The software contains a display panel. The panel has details of several other bookies, which you can reference your odds from.
The software has to provide top-notch security and privacy for your clients. Most software providers develop anonymous identities for bettors. The software has the ability to detect any fraudulent activities on your bookie website, notify you, and block it.
The software’s user interface (UI) should be friendly to your customers. You and your customers have to navigate easily through the website with a phone or a desktop. A user has to easily find critical items like the language switch option, the login and the logout option, and the customer care panel.
A calendar of events is an essential feature in any software. The calendar will give you a layout of any future events and past games. Through these events, you will be able to measure the success of your business and make strategic plans.
The software you acquire should have an update panel. The panel will give you real-time updates as the game proceeds. The updates will help you to adjust the line hence avoiding losses.
You will need to have full access to scores, odds, winnings, losses, players’ wellness state, weather updates, etc. The update will help the gamblers to make good betting decisions, and you will be able to predict the game and set the line.
Your bookie software has to accommodate several types of sports depending on your target audience. Options attract new customers as they explore to know the kind of games they are good at betting. Adding a live-action feature will make your bookmaking business more marketable.
Your business will attract gamblers from different areas, so the software you use has to accommodate various payment methods. Payment plans like fiat, PayPal, credit cards, and cryptocurrency are the most common in bookmaking.
As a bookie, you need an advertising tool panel, tools to regulate limits, odds, bonuses, and risk management tools. These tools are found in the admin panel that is safe and secure only for you.
The journey to become a bookie requires meticulous planning. Contact Power Pay Per Head at 855-492-600 to get the best software for your bookie website.