Do Bookies Make a Lot of Money?
Mon, Mar 23, 2020
All aspiring bookmakers are always curious about whether or not bookies make a lot of money.
I can tell you that bookies can make a lot of money, but it requires work. However, it’s possible to make a nice side income even if you only have a handful of active bettors.
In fact, you can potentially make a decent side income from a single active bettor.
How Do Bookies Make Money?
Bookies make money from the commission (vig) they charge. For example, a typical point spread or over/under bet will have a $.20 line (-110/-110) despite the bet being a 50/50 proposition.
Your goal as a bookie is to have a balanced book. If you receive 50 bets of $110 on Team A and 50 bets of $110 on Team B at -110 odds you’ll have taken in $11,000. Regardless of which team ends up winning, you’ll need to pay out $10,500, which means you’d make $500 on that market.
As you can see, being a bookie is a volume game. The more volume you bring in, the more money you’re going to make. However, it’s important to balance your book and not gamble yourself on results. Some bookies are tempted to “take a side”, but that’s not a smart business decision.
How much your players bet will also dictate how much you can potentially make.
Let’s imagine we have two losing bettors. You’re obviously going to make more money from a bettor wagering $500/game instead of $50/game. Targeting bigger players is ideal, but since PPH services are so inexpensive, you can make money off bettors wagering small amounts (<$50).
Some of the top sites in the pay per head industry can be found here
One thing to keep in mind for the bookies is that your revenue will fluctuate. Some months will be much more profitable than others, so don’t expect linear revenue on a month-to-month basis.
In fact, you’re going to lose money some months. Even losing bettors have winning months where they’re going to win a lot. Being a bookie is a long game. Over the long run, the average bettor is going to lose money, which is why retaining your clients is so important in this business.
So, to recap, here are some tips to make a lot of money as a bookie:
● Volume: In the bookmaking business, you need to market, market and market some more to build up your player base. Players will come and go over time, so you need to be constantly bringing in new players to keep your revenues growing as a sportsbook owner.
● Bigger Players: Accepting all players is fine, but you need to find a way to bring on bettors with bigger bankrolls that wager $250+/bet. You’re likely going to need to offer some sort of perks to target bigger players, such as bonuses, cashback or a loyalty program.
Making a six-figure income as a bookie owner isn’t overly difficult. You simply need to sign-up as many active bettors as possible and then do your best to retain as many clients as you can.