Bookmaker Profit Margin

December 13, 2021

Bookmaker Profit Margin

Bookmakers take action on various sporting events, where players make wagers with them, and then they pay the player when the wager wins, and collect from the player when the wager loses. Since players always lose over the long term, the potential bookmaker profit margins can be huge.

To be a proper bookmaker you need to offer your players a professional style website, which can offer players the option to bet thousands of games and types of bets each and every day. Luckily there is a very cost-effective way to do this, instead of just creating and building your own site from scratch and spending large amounts of startup capital. Instead, there is an entire industry dedicated to local bookies, which is called pay per head, and these companies provide a ready-to-use turnkey solution for anyone looking to be a bookmaker.

These pay-per-head services provide a fully functioning sportsbook site where they post lines up to the second and then grade all wagers as soon as each game completes. Then all balances for both the players’ and the agents’ are updated and calculated up to the second, so each party involved knows what they are up or down for the day and week.

Profit Margins Can Be Well Over 90%

The average price per player that is charged by these services is around $10 per active player per week. If the player makes one wager or a thousand wagers that week, the price is still a flat $10 per week for that player. Since players have the potential to lose hundreds or thousands of dollars per week, this means the potential to make huge profit margins is not only possible but a reality.

For example, if you are a bookmaker with 10 players, that bet only $50 a game, a few wagers a day, then those players can easily lose a total of $1,000 per week. The 10 active players using the site would only cost $100 for that week, and then if you subtract that cost from the $1,000 the players lost, then that would leave an overall profit for just that week of $900. That is the easiest 90% profit margin you will ever make in your life in any business. You as the bookie don’t need to do any manual labor, all you do is just sit back and watch the games you have action on, and then collect the money from players after they lose.

The pay per head service does all the technical bookie-making aspects, such as setting the opening line, updating the line based on where the action is going, and where the sharp professional players are betting. They also handle all the costs of maintaining the website, with servers and a 24 hour, 7 days a week, 365 days a year customer service department for any questions or requests that you may need.

The best part is they do all this for a small flat fee of $10 per active player and do not take any type of commission on what the players lose. This is what allows local bookmakers to easily makeover 90% profit margins each week. The sky’s the limit if you are looking to be a bookmaker, so get set up with one of the top-rated pay per head services today.

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