Traditionally, local bookies used to operate by giving their bettors credit. Today, even a pay per head sportsbook uses the same arrangement. This is where bettors could place bets without depositing money and paying up later.
With such a payment arrangement, it is risky for bookies. For starters, if the bettors lose the bet, he remains in your debt.
However, with the implementation of appropriate measures, concerns about whether a bettor will honor their financial obligations can be alleviated. Let’s explore some effective strategies to assess a client’s eligibility for credit betting and evaluate their credibility to fulfill their debt obligations.
One of the ways a pay per head sportsbook finds clients is by referrals. This system allows existing players to invite their friends in return for a bonus or other rewards. Bookies can use the same method to determine whether clients qualify to bet on credit.
As long as you have a list of friends as bettors, they can speak for each other about their integrity. If it impresses you, you can consider several other factors before allowing them to bet on credit.
If a player was gambling on another bookie, you know, you could ask about their credit history. Find out if they pay debts and whether they observe deadlines.
Do Your Research On The Player
While being recommended for good character is indeed a valuable factor to consider, it should not be the sole basis for decision-making. Instead, conducting thorough research is essential to assess the credibility of potential clients. Thanks to advancements in technology, gathering information about a person’s reliability has become relatively easy.
Begin your research by analyzing their communication habits. Prompt and professional responses to emails indicate a level of respect and professionalism on the part of the player.
Another useful step is to explore the player’s social media profiles. In today’s digital age, it is challenging for individuals to hide crucial aspects of their lives on social media platforms. By examining their pages, you can gain insights into their financial stability and ability to fulfill their debts.
While this research may seem time-consuming, it is important to remember that you already possess valuable information about your players. They have registered using their names, bank details, addresses, and other basic information, which can be utilized to gain a further understanding of their background. However, it is crucial to ensure that your research practices align with data privacy guidelines to protect the players’ information and uphold ethical standards.
By investing effort into conducting research, you can make informed decisions regarding the risk level associated with potential clients, allowing you to mitigate potential financial risks effectively.
Find If They Agree With Your Terms And Conditions
Before the pay per head industry came to life, local bookies sent a muscular guy to collect a debt from bettors. You will still see this in movies.
Today, you cannot apply such strict measures because you do not know whether the player resides. Although they might fill in their address as they register on your platform, it would cost you more to find them.
Instead of going through such extreme measures, you can find who can bet on credit by laying out some facts. As you discuss your points, you can detect players not likely to pay their debt in the future.
Start by telling the player how much credit you give, how much you charge, when they should pay up, and the consequences. If there is a way to sign these agreements, let them sign. Ideally, show your borrower what he is likely to lose if they fail to pay their debt.
Analyze the Betting History of a Player
The above tips work when you are dealing with a new player. Determining whether to give existing players a chance to bet on credit is less complicated.
You can start by generating a report of the player asking to bet on credit. Look at how much the player bets each week, their winning, and their betting history on your platform.
The information you find on these reports can tell you whether a player qualifies to play on credit on your pay per head sportsbook. These reports will also guide you in setting the weekly limit for each player.
For example, if a player spends $100 each week, you can set his bet limit on credit at slightly less than his weekly spending. Players who spend more can have a better credit limit than those who bet less. However, you need to consider how active these players are.
Some log in once a month and can place up to $100. Others can bet every week throughout the year. You might need to prioritize active players who have spent more on your account than casual bettors.
Start With A Lower Credit Limit
Another way of finding whether your clients can repay debt is by giving them credit. If they pass all the above tests, you can take another bold step; to offer credit.
But, go slow with this. Set a much lower credit limit for each week. Notice how each of the players used up their credit. Were they greedy or smart?
Some bettors can use up the full credit at once. While it is not wrong to bet the entire amount at once, your gut will help you determine whether they fit your pay per head sportsbook.
Smart bettors will divide their credit throughout the week, hoping they will win some games. These types of bettors are on your platform for the long haul. They are not guessing to bet.
They are here to do business and will apply all their resources before they place a bet. These bettors also remember that they will repay the debt due because they are aware of their financial responsibilities.
Make More Money By Offering Credit To Bettors
New business owners are often advised not to give credit. It is understandable considering one report by Credit Wagering revealed only 20 percent of bettors who bet on credit lose pay up. This would mean that 80 percent of bettors have to bet with cash and lose to cover the loss of those who bet on credit.
But, this is not meant to scare you. Once you investigate the credibility of your bettors using the above tips, you can run a smooth pay per head sportsbook business. This will make you money because bettors tend to bet more on credit than cash.