Last updated on February 12th, 2025 at 10:05 am
Many people that are not very familiar with how a sportsbook works are under the impression that Bookie always win. This theory comes from the idea that the house always wins in a casino. However, does this theory also hold true for a sportsbook? Do Bookies Always Win and if so, how is such a feat possible.
On the other hand, some are skeptical about the possibility of the bookie always winning because of the odds factor. They believe that the rule of the “house always wins” on the long run rule is more difficult for bookies. This is because unlike casino games, the odds are not consistent due to many factors that affect a sporting event.
The truth about whether a bookie wins all of the time or not is not as simple as that. This is because a bookie does not actually make bets against other bettors. No, their job is to facilitate wagers made between bettors. Therefore, in this sense, a bookie never loses. Unlike a casino which is the house against the players; a bookie is the guy who holds the stake money for bettors.
Bookies Go Out of Business so it Must Not Be True
It is a running theme that 75% of new bookies and sportsbooks go out of business after one football season. Therefore, it must not be true that a bookie always wins. While that theory may seem sound, it is actually a causal fallacy. Since they are incorrectly assuming the cause of an event.
First off, the failure rate applies to all new startup businesses. Approximately 1 in 4 startup businesses in the U.S. will fail within a year.
As someone with 35 years of experience in the gambling industry, I know exactly why sportsbooks go out of business. In most cases, it is a combination of poor management decisions and not financial backing. In some rare cases, it is because of a bad decision. This is when a bookie takes a wager they cannot cover thinking the player will lose the wager.
Other factors include bookies giving out bonuses that they cannot afford to give because they do not have enough money. In turn, this often leads to their sportsbook turning into a ponzi schemes. This is where they have to pay winners with deposits of other players instead of losses from other players.
Another reason is because it is expensive to run a sportsbook. A sports betting license can cost millions of dollars and that does not include taxes. Furthermore, bookies also have to maintain their sportsbook and pay employees. This is the main reason why most bookies use a sportsbook pay per head to open their business. As it is a much more affordable solution.
So, the reason why so many bookies go out of business has nothing to do with the theory of bookies always winning. It is just bad management and maybe a bit of bad luck with no backup plan.
How Does a Bookie Make Money
Before we can get deeper into the subject, the first thing to understand is How Does a Bookie make money. It is crucial to know because it will dictate whether or not it is possible for a bookie to always win in the long run.
A bookie does not make money from players losing bet. Instead, they make money from charging a fee for every wager they take. The fee is known as the ”vig”, “juice” or simply the “commission”. Therefore, the job of a bookie not to hope all players lose their bet. No, it is to make sure that his customers bet on both sides of a bet equally. This way, the bookie ensures that no matter who wins or loses the game, they will make a profit from it.
Obviously, this is just a simple explanation of how a bookie makes money. If You want to know more about it, check out this tutorial on how a bookie makes money or simply watch this video below.
Why do Bookies Always Win – Putting Theory into Practice
Under proper management, the right staff and strong financial backing a bookie will always win. By winning, I do not mean having players lose more than they win. I mean being able to have a steady income from it.
While in theory, it is possible to balance the betting on both sides. However, the truth is much different than the reality. Just because you want bettors to bet a certain way, it does not mean it will happen. No matter what odds you give, a bad bet is still a bad bet.
Instead, bookies must look for ways to even out the betting before it is time to settle-up. Hence, the more betting options they offer and the bigger the odds of them making money. This is because it will increase the sports betting handle.
In the end, the goal of a bookie is to have a hold percentage of 10%. This is where they keep 10% of all wagers they take. Of course, the reality is that most bookies only have a 5% to 8% hold percentage.
Using Expert Help
Other than strong financial backing, having expert sports handicappers on staff is the key to their success. This is because the odds they set reflect both the probabilities of an event and how they believe players will bet. In addition, they change the odds according to the betting market to insure a profit regardless of the outcome of the game.
Thus, they always make sure that the odds are even on both sides to make money from the commission. And this is how bookies make money!
In addition, having a good risk management team is also an invaluable part of a successful bookie operation. A good risk manager will ban or limit a successful sports bettor. They look for players that have systematic betting systems, arbitrage players and of course, players that abuse promotions and bonuses. Thus, they pay winning players off and kick them out or lower their betting limits to avoid taking heavy losses.
Strong Financial Backing
Having strong financial backing does improve your odds of being a successful bookie. This is because if a player consistently plays with them, on the long run, the odds will favor the sportsbook.
However, it is possible to be successful bookie without a lot of money thanks to bookie pay per head services. For example, PricePerPlayer.com gives you all the tools to open a successful gambling website for only $7 per player.
Thus, you do not need to pay for a sport betting platform, expert staff and an expensive infrastructure. Instead, bookies only have to worry about finding and managing players.
Conclusion – Yes, It is Possible
Yes, it is possible for the bookie to always win in the long run. Under proper management, the right staff and strong financial backing a bookie will always win. This is because they have the financial backing to outlast their players.
However, in order to do that, they have to implement and follow certain rules to their business model. Therefore, just because they can, does not mean all of them do. If that was the case everyone would be a bookie!
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