Make a Profit Running an Online Sportsbook
These past couple of years, news channels are flooding with information about how much revenue sportsbooks are making. From how sports betting in Arizona is exploding to how Tennessee sportsbooks set new record in November, its everywhere. With this in mind, maybe it’s time for you to consider opening a sportsbook operation. Thus, in this tutorial we will go over Make a Profit Running an Online Sportsbook.
Before we start, let’s first go over how a sportsbook makes money. The answer is simple enough as a bookmaker makes money from charging a commission from taking bets. This commission is known as the “Vig” or “Juice”. The best part for sportsbook owners is that they collect the Vig” whether the player wins or lose the bet.
On average, the hold percentage or revenue a sportsbook makes is around 5% to 12%. Obviously, the higher the hold percentage the more money a bookie will make. This is why any How to Open a sportsbook tutorial emphasize the need for volume to increase profits. This is because the more bets you make the more money you make. By volume, we do not mean the number of bets made. We are talking about the amount of money people wager overall.
An online sportsbook with only 25 clients can have the same revenue as a sportsbook with hundreds of clients. This is because as long as each sportsbook have the same betting volume, the revenue will be the same.
Make a Profit Running an Online Sportsbook with a Pay Per Head
No matter what kind of business you own, the equation for making a profit remains the same. It is revenue minus expenses. With this in mind, it is in the best interest of the bookie owner to not only have quality customers. They must also be able to cut costs in a smart and efficient manner.
Running an online sportsbook is not cheap. This is because it requires a good size infrastructure, paying for sportsbook platform and server cost and maintenance. In addition, any sportsbook operation must also have a support staff for sales, customer service, IT and more. Needless to say, running a sportsbook operation is not cheap.
However, smart sportsbook operators use a Sportsbook Pay Per Head Service to cut down on cost. This is because they provide all of the tools, gambling platform and infrastructure at an affordable price. For example, PricePerPlayer.com, the leading PPH provider in the industry only charges $5 or less per player for their services.
Since their services include, sports betting, live betting, casino games, a live casino and a racebook, the savings are huge. This is because instead of spending tens of thousands of dollars per month, you only spend per active player. Thus, your online sportsbook profits are much higher.