The reason anyone starts a business is to make money. Some business owners are also passionate about what they do, but at the end of the day, it’s all about the money.
How Do Bookies Make Money?
For those completely new to the industry, the first step is understanding how bookies make money.
Bookies make money when a player loses a bet. However, bookies can also guarantee a profit if they have even action on both sides of a bet because of the commission charged.
For example, the Lakers are -3 (-110) against the Clippers +3 (-110).
A player needs to bet $110 to win $100 at -110 odds. If you have one player bet $110 on the Lakers and one player bet $110 on the Clippers, you’ll collect $220 in bets and only need to pay out $210.
It isn’t going to be feasible to balance your book every time you get a bet, though.
This is why it’s possible for a bookie to lose money some weeks. You need to have a bankroll that’s reserved for paying out your winning players in case they have a good week and beat you badly.
Tips for Earning Consistent Profits as a Bookie
Follow these tips to master the art of turning consistent profits:
Sourcing Players: The more players you have actively betting, the more money you’re going to make in the long-run. You also need to replace lost players sometimes. PPH services will help you with nearly everything except for sourcing players and marketing.
Strict Betting Limits: If a player normally bets $100/game, you don’t want them to take a shot on you and bet $1000 all of a sudden, as it can wipe out weeks worth of profits. It’s better to win consistent amounts weekly rather than try to win big every once in a while.
Strict Credit Limits: You also need to have strict credit limits in place. For example, you can’t have a player that normally loses $200/week start betting $250/game. It only takes one of your players not to pay you to take weeks of profit away, so keep that in mind.
Managing Risk: Use a layoff account when needed. The best PPH services have an account where you can layoff some of your action with another bookie. If your players all bet on a local team, you’ll want to manage the risk and lay off some of the action.
Managing Costs: PPH services are low-cost and allow you to pocket more of your profits every week. Managing your costs, such as marketing expenses is just as important as anything else. It’s easy to spend thousands on marketing with no tangible results.
Becoming a bookie is lucrative, but there are definitely some risks. You wouldn’t be the first bookie to go completely broke and you wouldn’t be the last, but it’s definitely preventable.
Follow strict guidelines when operating your bookie and you’ll have consistent profits rolling into your bank account. You get to set your own schedule and can live anywhere as a bookie as well.