The main reason why anyone starts their own business is to earn a decent living while being their own boss. Anyone close to the sports betting industry already knows there is money to be made booking bets. This is a multi-billion-dollar industry in the US alone and growing in reach and size every year.
With individual states now allowed to regulate legal sports betting within their borders, the market is going to continue to expand in the coming years. While legal land-based sportsbooks and books operating online are major outlets for sports betting in the US, the private bookie segment of this industry still accounts for the lion’s share of the total revenue generated.
The private bookie’s main edge is the higher level of customer service and personal attention to detail they can provide and the big commercial books will never be able to match. By offering flexible betting and credit limits, the private bookmaker has wide-scale appeal to avid bettors looking the best way to place their daily and weekly bets.
Right along with the growth of the private bookie industry in the US over the past few decades has been the rapid expansion of pay per head bookie software providers. They can give the private bookie everything needed to operate an independent sportsbook online. There is no upfront cost for this service other than an initial deposit. Those deposited funds are used to pay the low weekly price per head fee charged for each of a bookie’s active betting customers.
Projecting Weekly Revenue
If you are actively running your own book or looking to start one up ahead of the new football season, finding the right price per head online sports betting software package should be your top priority. Not all PPH services are created equal and shopping for one on price alone can result in far more headaches than it is worth.
A private bookie makes money on the hold percentage on the action coming in. This is very important to know and understand when it comes to setting financial goals for your own bookmaking operation. The hold percentage is the difference between the winning bets paid out and the money collected on the losing bets plus commission (juice). The minimum hold percentage to prosper is five percent. The top land-based sportsbooks in Las Vegas average around seven percent, so you can see that the profit margin booking bets can be rather slim.
With a slim profit margin of just five to seven percent, you can back into the betting volume you would need to generate to reach your individual profit goals. The pay per head cost is fixed per active bettor, so you need a customer base that is a good mix between casual and heavy bettors. A casual bettor will often lose more often than they win and the heavy bettor will generate more weekly betting volume.
Enhancing Weekly Revenue with Pay Per Head
Since your weekly pay per head fee is fixed depending on the overall bookie software plan you choose, making the most of that service is in your best interest. Real time business analytics are vital to the daily operation of your book. A private bookie always needs to stay way out in front of all the action coming in, especially when business starts to really pick up in the last three months of the year.
You need mass edit capabilities as well as fast and easy ways to adjust individual betting and credit limits. You also need quick access to move betting lines and make changes to your betting board. All of these business tools can enhance the bottom-line profits your bookie business brings in.