I Want to be a Bookie, How Much Money do I Need?

Last updated on December 12th, 2024 at 07:59 am

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So you finally decided to be a bookie

You have done your research and are ready to become part of the sports betting industry. You have your list of players ready and chosen a Sportsbook pay per head as your sportsbook software and platform. With a strong drive to succeed, 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. However, many other variables that affect the amount of the starting capital necessary are under your control.

In a normal business, you would simply subtract the estimated revenue minus the cost of operation minus, products and such. On the other hand, being a bookie is not your normal business because it deals with gambling. Therefore, in addition to having the cost of operation, there is also the payout cost to take into consideration.

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.

In this bookie tutorial, we will show you how much money you need to be a bookie and how to calculate

How Does a Bookie Earn Revenue

Before we begin, we need to know and understand How a Bookie Earns revenue. While betting on sports relies on luck, it is a different story for a bookie. This is because bookies and sportsbooks do not actually bet in sports. Instead, their job is to facilitate the act of betting on sports between gamblers.

They make money by charging a commission which is know as the “Vig” or the “Juice”. The vig will vary depending on the sportsbook and the game but in general will be between 5% to 10%. Ideally, a bookie wants the Vig to be as high as possible. However, they will change it accordingly depending on how even is the betting on both side of a game.

To ensure a profit, bookies must have players that will bet on both sides of a game equally. This way, no matter who wins the game, they still make their commission. This is where setting and changing sports betting odds come into play.

Of course, there is a lot more to this but this is the simplified version of how a bookies earn money. Feel free to check out in detailed version of how a bookie make money.

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:

How We Came Up with these Estimates

Basic Assumptions for the Estimations on how much money is needed for becoming 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
- This is based on using the PricePerPlayer.com Bookie Pay Per Head Service for a total of $500 Per month.
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

Now that you know the basic calculations, it’s just a matter of entering numbers to fit the type of sportsbook you want to have so that you can make an educated estimate.

To simplify the revenue calculation, take a look at our

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!