However, there is no single answer to “How much do bookies charge” because each bookie has his own unique goals. Moreover, several factors affect how much a bookie can make. This article explores the roles of a bookie, vigs, and several examples showing how much bookies make.
THE ROLES OF A BOOKIE
To get a clear picture of how much do bookies charge, you need to understand the roles of a bookie. A bookie is also referred to as a bookmaker, bookie agent, or sportsbook agent. His job is to accept bets on various events, including sports, horse races, TV series, celebrities, politics, and shows.
Another bookie’s role is to collect wagers and pay winning bettors. A bookie can also create and adjust odds, hire an oddsmaker, or work with a pay-per-head company that assumes the role of creating and adjusting odds.
For example, a player can bet on a specific team to win. If the team wins the game, the player gets his money back plus the profit. However, if the team does not win, a bookie keeps the wagered money.
This would mean that a bookie can only earn his profit when a player loses his bet. Suppose a player has wagered on the Dallas Cowboys at -6.5 against the New York Giants. This means the Cowboys have to win by 7 or more points for the player to win his bet.
If the Cowboys win, the bookies have to pay up the wagered amount plus the profit a player made. Unfortunately, this is not a good way of doing business. Therefore, bookies charge a vig to ensure their income no matter which team wins the match.
WHAT IS A VIG?
A Vig, also known as vigorish or juice, is a commission collected by bookmakers to facilitate betting for bettors. This fee varies across different bookies, sports, and events. The standard vig percentage hovers around 10 percent.
For instance, if a bettor places a $100 wager, they would need to risk $110. In the event of a win, the bookmaker deducts their 10 percent share, returning the original wagered amount along with the winnings.
Vig charges can differ from one event to another. Consider a scenario where one bettor places a $50 wager and another bets $2000. To get $50, the former needs to wager $55, while the latter must risk $2200 to win $2000.
Importantly, the profit a bookie accrues per game is variable, contingent upon the vig percentage and the amount at stake. In the example cited above, the bookie could pocket $5 from a $55 wager and $220 from a $2200 wager.
By applying a vig to each wager, bookmakers secure profits. However, maintaining equilibrium in their books is crucial; failure to do so might lead to using profits to cover payouts.
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FACTORS INFLUENCING HOW MUCH BOOKIES CHARGE
The answer to how much do bookies charge varies. But, several factors influence bookies’ decisions on how much they charge. These include;
1. NUMBER OF PLAYERS
A bookie can charge a specific amount of vig based on his number of players. For example, if you have 20 players, you can charge between $10 and $20 vig. However, you must consider the type of players you have.
Suppose you have high rollers working with bigger bankrolls. These players might be willing to part away with 10-20 or more dollars to place bets with you. However, when you work with players whose average bankrolls, you might consider lowering the vig.
Bookies with over 1000 players tend to charge a lower vig to encourage more players to wager. Moreover, they feel they can earn their daily targets by charging a lower vig. On the other hand, a bookie with a few players can charge a higher vig to earn his profits quickly.
2. POPULARITY OF SPORTS
Another factor that includes vig percentage is sport’s popularity. For example, American football matches might have higher vigs than soccer events.
Usually, American players are likely to wager on their favorite sport, American football, no matter the vig percentage. However, a bookie has to encourage players to wager on less popular sports by charging a lower vig.
3. WHAT OTHER BOOKIES CHARGE
Another essential factor is what other bookies charge. For example, if bookies in New York charge 5 percent vig on American football, a new bookie will likely use the same margin.
The bookie can charge a lower vig. But, this might not guarantee a bookie more players. Ideally, a new bookmaker must evaluate how much do bookies charge to set his vig.
HOW MUCH DO BOOKIES MAKE?
Vig is not the only way bookies make their money. While it is the primary source of their income, bookies can also earn profits from bad bettors, having more quality players, and offering more gambling forms. Yet, charging a vig is the best way to increase a bookie’s income.
For example, sportsbooks in Nevada received $4.87 billion in 2017. After subtracting winnings, sportsbooks were left with $248,780,000.
This is the money bookies kept after settling all bets. In other words, sportsbooks worked with an average vig of 5.1 percent.
Suppose a bookie has 100 players and charges 5 percent vig on all events. You can determine a bookie’s revenue by multiplying the number of players by the hold percentage and the number of wagered bets. This formula should tell you the average amount a bookie will likely make in a week, month, or year.
If you want to know potential earnings in a month, take the number of players that wagered during the month and multiply by vig and the number of wagers. You can simplify the process by working with a pay-per-head solution.
POWER PAY PER HEAD: A SOLUTION TO EARNING GREAT PROFITS
Pay per head industry has simplified bookmaking. It allows bookies to venture into the sports betting industry without spending thousands of dollars. Apart from that, working with a pay-per-head solution helps bookies make good profits.
So, if you are still wondering how much do bookies charge, the answer lies with Power Pay Per Head. Having worked with over 2000 bookies, Power Pay Per Head has a better answer to your question, “how much do bookies charge” The company can tell you how much do bookies charge based on where they operate.
Whether you want to launch your bookie in New York, New Jersey, Alabama, or any other state and do not know where to start, the Power Pay Per Head agent can guide you. The agent will help you set ideal vigs for each event, ensuring an optimal outcome.
A bookie can charge as much or as little as he wants. But, it is crucial to consider several factors before setting vigs to games.
For example, if you are a new bookie, you might prefer charging a smaller vig for the first few weeks to attract new clients. You might want to increase that vig to the industry standard to appeal to professional bettors interested in competitive odds and good experience. Whichever road you choose, let a professional such as Power Pay Per Head hold your hand.