The basic premise behind booking sports bets is rather simple. A bookie takes the bet, the action gets graded and they pay off the winning bets and pocket the losing ones. They also add a 10 percent commission (or juice) to those losing wagers.
The simplicity of running and managing a sports bookmaking business stops there. Specialized technology and sophisticated software have radically changed the entire sports betting industry over the past two decades.
Going back to the early days of the internet, offshore sportsbooks developed ways to reach global markets through an online betting platform. This allowed certain online books to specifically target the US market based on their jurisdiction.
Since private bookmakers still control the majority of the revenue generated by betting on sports, the pay per head industry was established. These software solutions were geared towards running a private bookie business online.
Fast forward to today’s marketplace and you will find a sports betting industry that has advanced at a very rapid pace. The top-rated commercial online sportsbooks still cater to the betting public and pay per head sites still cater to private bookie agents running an independent bookmaking operation.
You can also add-in custom software solutions for horse betting and online casino games to form full-service online gambling sites. These sites operate both commercially and privately on a global scale.
The Professional Pay Per Head Model
It is not financially feasible for private bookies to create, develop and maintain the necessary software solutions to operate online. It is also illegal in most jurisdictions to run an online book without the proper licensing.
Pay per head sites are licensed and regulated in their jurisdictions. This is why the top-rated PPH services reside in Costa Rica. Their business model leases the necessary software solutions based on a per head payment formula.
A private bookie can get everything needed to run a business online through a pay per head operating system. The cost is based on a weekly per head fee that is charged for every active bettor using their services.
For example, if a bookie handles an active customer base of 50 players for sports betting, horse betting and online casino gambling at a cost of $10 per head, the weekly fee paid to their pay per head service is $500.
There may be some added fees for live in-game betting and live-dealer table games depending on the service. Some pay per head sites are starting to offer software solutions to run an online poker room.
Good, Better & Best Bookie Services
Like any industry, there is a large pool of competitors offering similar products and services. Some are better than most and the ‘best of the best’ occupy the upper tier. The pay per head sites at the very top of the list is where every private bookie should start their search.
If you are looking to start a private bookie operation or revitalize an existing one, anything less than using a professional sportsbook management service is going to be a huge waste of your time and money.
Your focus should never be on a site’s actual pay per head weekly fee. It should be on the added-value offered in that PPH service’s cost.
If you are serious about running and managing a professional bookmaking service, it is time to get serious about the pay per head site you decide to sign on with.