How Do Bookies Make Money?
One of the most appealing aspects of betting on sports is the opportunity to make money. Bettors that are successful consistently can turn a profit from placing bets.
The thing is most bettors lose in the long run, which is how bookies make money and why they continue to stay in business. Bettors losing bets is not the only way that bookies make money.
The Juice
Bookies charge a fee – the juice – for placing a bet. Normally, that fee is 10 percent. Bettors will see it expressed as odds of -110. If a bettor places a bet on the Lakers -3, he will need to wager $110 to win $100.
When the bettor wins, he wins $100 plus he gets his stake ($110) back. When the bettor loses, the bookie collects the $110 stake. The extra juice, the $10, adds up. Even if a bettor wins half of his bets, the bookie still makes money.
The best way for bookies to make more money is to acquire more players or have current players that give a ton of action. The easiest way to do this is through the use of a pay per head provider.
Maximize Profits
By using a quality pay per head company like RDG Corp, a bookie can make more money. RDG Corp, for example, sets up bookies with a complete software system that has all the tools needed to run a large and very successful bookie operation.
The pay per head system begins with the ability to offer a huge betting board with sports and events all over the world. It’s a website-based system that allows players to log in and place bets. Players have access all the time, 24 hours a day, 7 days a week.
The PPH system collects all the bets and keeps track of all the different betting accounts. This would be an immense amount of paperwork for the old-school bookie. After the events, the pay per head, keeps track of wins and losses and keeps track of any payouts.
Just doing that alone saves the modern bookie tons of time. As the saying goes, “time is money” and with more time on hand a bookie can get out and add players to his player sheet. He can also analyze any of a number of reports provided by the PPH in an effort to find even more ways to increase his profits.
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More Time Saved
One of the best features of a state-of-the-art pay per head like RDG Corp offers is the 24/7/365 customer support. A bookie using RDG Corp, for example, doesn’t have to field calls about a player’s betting account or deal with deposit or withdrawal issues.
Any and all problems, including anything technical, is taken care of by a fully staffed customer support team. They take care of the behind-the-scenes stuff so that bookies have the time to go out and recruit more players and figure out other ways of maximizing profits. Again, more time saved is more money earned.
Bookies make money on player losses and on collecting the vig but, ultimately, they make even more money when they partner with an industry-leading pay per head company like RDG Corp.