Everyone needs to start somewhere. If you’re interested in becoming a bookie, one of the first things you need to know is how bookmakers make money. That’s likely why you want to be a bookie, right?
So, how do bookies make money? Well, it’s simple. Bookies make money on losing bets. If a bet loses, the bookie keeps the money. However, it’s also possible to make money regardless of the result.
Bookmakers have a built-in edge against sports bettors because they charge a commission (vig) on every bet. That’s why a bet that’s supposed to be a coin flip (50/50) is priced at -110 and not +100.
How to Guarantee a Profit as a Bookie
Follow these steps to guarantee a profit as a bookie on any market:
In the example below, we’ll use a typical NFL point spread (Giants -2.5 (-110) vs. Jets +2.5 (-110)).
● Step #1: With any market priced at -110/-110 on both sides, your goal as a bookie is to get 50% of the total money bet on each side of the bet. For example, let’s say you end up with $1100 bet on the Giants -2.5 (-110) and $1100 bet on the Jets at +2.5 (-110).
● Step #2: If you managed to get 50% of the money bet on each team, the next step is simply collecting your profit. If the Giants or Jets cover ATS, you’ll payout $2100. Since you collected $2200, you will make a $100 profit regardless of the outcome.
● Step #3: If you don’t get even action on both sides, what do you do? Well, if you partner with one of the best pay-per-head (PPH) services they’ll have what’s known as a layoff account. A layoff account allows a bookie to balance his book and eliminate risk.
As a bookie, you’ll need to decide your risk appetite. Are you going to try and balance every bet to slowly make guaranteed profits? You don’t need to balance every market. In fact, it’s impossible.
The majority of sports bettors lose long-term, as they can’t beat the commission. If you have a big enough bankroll to handle swings (big losses), most of your clients will eventually lose.
Learning how to make money as a bookmaker is simple. You need to learn how to move the odds to entice balanced action. You can also use some other little tricks. For example, if you have a large base of local clients that bet on the home teams, move the odds out on those teams a bit.
A typical bookie will have a 5%-10% hold percentage, which is how much they make on the money they take in. So, if you’re taking in $100,000 in bets per month, which isn’t unrealistic once you get going, you’d be expected to make $5000-$10,000/month. Running a bookie is extremely profitable.
Sign-up with a PPH like RealBookies to start an offshore sportsbook today. They even offer a free trial for the first four weeks, giving you a chance to start making money before paying anything.
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