How Much Does a Bookie Earn?
One of the biggest reasons why people are becoming a bookie, is that they want to earn money. Just like any business venture, your income will depend on a lot of things. For one, the size of your operation will give you an idea of what you can expect, profit-wise. Second, your overhead will also be a factor on how much of the business’ income you get to keep as your revenue. This leads many to ask how much does a bookie earn?
A bookie earns money by taking a cut, called vig, from each wager that players in their sportsbooks will make. Now, when a player wins a wager, they get more money, right? The winnings will not be coming from the bookie’s pocket. Rather, the money from the losing bettor should be paying for the winning wager’s payout. This is why its crucial that a bookie should be good at balancing the sides of each wager. If there are more losing bets than winning bets, then the bookie gets more profit. If, however, there are more winning wagers than losing wagers, then the bookie will have to pay for the difference from his own pocket.
How Much Does a Bookie Earn?
Now that we have explained how a bookie gets his income, we’ll now talk about how much a bookie can earn. We’ll be using a very simple amount so its easily understandable, but amounts will always vary. If you take a look at odds in a sportsbook, you will always see something like -110 listed. This means, that you will bet $110 to win $100. So, even on an even game, a bookie will get something. Assume a 50%-win rate for the players, then you can safely compute that for every $100 you wager, your bookie will get $5. This is on a per wager basis. So, if you make multiple wagers on a game, then the bookie will earn the corresponding percentage.
Now, no business goes without investing on your overhead. It normally costs hundreds of thousands of dollars to come up with a good software to help you manage your sportsbook. But if you want to get the most profit for your bookie business, you would be smart to go for a bookie pay per head service.
Pay Per Head Bookie
Let’s go back to the cost of creating a system to manage your business. If a bookie pay per head business has a rate of $5 per player, per week, then your overhead per player is $5. Now, if this player bets a few times each week, let’s assume the bookie gets a minimum of $25 in vig alone for each player. $25-$5= $20. That’s $20 each week, times 4 weeks a month, getting you an average of $80 per player. If you have 10 players with roughly the same amounts, then that’s $800 a month. In a year, that’s $9,600.
Of course, this is assuming a specific amount wagered, and we were using a minimum amount. You could get more if your players wager a higher amount, or wager more often. If your sportsbook has more players, then you could earn more as well. You’ll probably spend here and there, in bonuses or promotions that you can give to your players, but it is a worthy investment. Especially when it brings in referrals, or promotes customer loyalty. At the end of the day, if you take care of your players, and manage your lines well, you can earn way more than the example we used today.