I Want to be a Bookie, How Much Money do I Need?
So you finally decided to be a bookie
You have your list of players ready, your sportsbook pay per head service on standby and the drive to do what it takes to make your sports betting operation a success.
The next big question is “I want to be a bookie, How much Money do I need?”, this is probably the most popular question every person who wants to be a bookie has asked themselves. Unfortunately, there is no straight answer because the amount will vary depending on several variables many which are outside of your control.
We can however, answer that question based upon fixed variables that can help us determine how much of a bookie bankroll a person needs to open their own sportsbook operation.
So here are the estimates on how much money you need to be a bookie:
- If first 6 months of operations are bad, you will need at least $70, 125 to stay in operation*
- If first 5 months of operations are bad, you will need at least $58,437 to stay in operation*
- If first 4 months of operations are bad, you will need at least $46,750 to stay in operation*
- If first 3 months of operations are bad, you will need at least $35,062 to stay in operation*
- If first 2 months of operations are bad, you will need at least $17,937 to stay in operation*
- If first month of operation is bad, you will need at least $11,687 to stay in operation*
*These estimates are based on having a sports betting operation that fit the following assumptions:
Basic Assumptions for the Estimations on how much money is needed to be a Bookie
- Type of Bookie – Credit Shop
- Number of Player: 25
- Operating Costs: Since most bookies run their betting shop out of their home, we will assume that the operational cost will be $5 per player
- Player Credit Limit: $1,000
- Max Bet Allowed: $500
- Bonuses: none
- Banking Costs: 5% Banking Fees
- Estimated Monthly Turnover: Total amount of money wagered every month by all players
- (Number of players x (credit limit x Max bet/100)) x 5 = $125,000
- When do you settle up – end of each month
- 50/50 Action – You have excellent line and you have 50% action on both sides of each wager
- Vig/Commisssion – 10%
Bookie Profit/Loss for a Regular month
- 50% of the players get a payout that average 65% of their credit limit ($8,125 )
- 50% of the players that lose, average a loss of 85% of their credit limit($10,625)
- your monthly fees are $1,437
- Your Vig/Commission is: $5,312
This means that you end up with a profit of $6,375
Bookie Profit/Loss for a Bad Month
- 50% of the players get a payout that average 175% of their credit limit ($21,875)
- 50% of the players that lose, average a loss of 65% of their credit limit ($8,125)
- your monthly fees are $2,000
- Your Vig/Commission is: $4,062.5
This means that you end up with a loss of $11.687.50
To simplify the revenue calculation, take a look at our Bookie Revenue Calculator.
Of course, they are ways to make it so the amount of money needed to open a sportsbook will be less by adding rules and conditions to your bookie that will limit betting and payouts.
Some examples are:
- Limit the Monthly Maximum payout amount
- If a player wins consistently with certain types of bets like Parlay, do not allow him to bet parlays anymore
- Lower the maxim bet amount
Keep in mind that when you add these types of limitations to your betting operation, it will make bettors not want to play with you.
Now that you know how much money you need, it’s time to take the next step forward and start your bookie operation by signing up for the PricePerPlayer.com sportsbook Pay Per head service by clicking here or on the banner below!