Sports betting is big business these days. There is a reason why Las Vegas and now Atlantic City casinos have sportsbooks on their casino floors, why there is a growing number of online betting sites and most importantly why running and managing your own independent sportsbook can be a very lucrative business venture.
This is not to say that booking sports bets is a fool-proof way to make money. There have been plenty of fools that have gone broke trying to run their own sportsbook, but there are also some basic reasons why they failed.
Looking for Customers
The first step in becoming a private bookie is to find some sports betting customers looking to book their bets with you. The next step, even if you only have one or two customers lined up, is to find a reputable Pay Per Head site that can take your bookie business online with the right sports betting software solutions. Right off the bat, this will be the most important way to keep your business profitable, so you need to treat this like one of the most important business decisions you will ever make.
If you choose a PPH service on price alone, you are already headed in the wrong direction. All price per head shops are not created equal and weekly per head fees should never be a deciding factor. Take a price per head’s software for a test drive, consult comprehensive and unbiased Pay Per Head site reviews and, most importantly, make an informed decision on which PPH service to ultimately use.
Once you have your bookie business up and running online, one of the most basic concepts you need to understand moving forward is the difference between the action coming in and the money that eventually makes its way into your pocket. It is very possible to lose money on the bets you book, if you do not stay way ahead of the action coming in.
This is where your Pay Per Head service can really earn the low, weekly per head fees they charge for your active betting customers. Your goal as a private bookie is to make your money on the commission (or juice) you charge for the bets you book. Since you only collect the juice on losing bets, you need to move and change your betting lines on a regular basis to try and shift money to one side of a bet if it is unbalanced on the other. On occasion, you may have to utilize a PPH layoff account to lower your risk.
Building the revenue you take in is very important to the growth of your business, but increasing the profit you make on that revenue is the key to actually making money.
Along with the ability to quickly move your betting lines and change your betting board, your Pay Per Head online bookie software package is loaded with various business reports that can generate the proper analytics that can keep you way ahead of the curve on the daily action coming in. You also have the ability to create account profiles for all of your betting customers while also setting credit and betting limits on an individual basis.
The big plus about being a private bookie is that you get to pick and choose which bettors you do business with. The ultimate goal is to build your customer base with a high number of recreational gamblers, while letting the high rollers take their business elsewhere unless you want to deal with the high risk/reward involved.
A final way to stay in the black with your bookie business is to take full advantage of everything your Pay Per Head provider brings to the table. You may have never even thought about taking action on horse racing in your own racebook or opening your own online casino. Both of these options can generate profit that goes right to your bottom line without the inherent risks involved in sports betting.