Bookies are people that take bets for a living on mostly sporting events. The idea is of course to take in more money than they pay out to customers. In addition, the theory is that a bookie makes money from charging a commission for their services. However, is this the entire truth or is their a behind the scene way on how they make money? Keep reading to find the answer on How Do Bookies Make Money.
On paper, a bookie will usually charge a 10% commission for taking a bet. This commission is known as the “Vig” or the “Juice”. Thus, if the bettors bet $100,000 on both sides of the bets then the bookie will earn $10,000.
Therefore, the impression is that a bookie will create and change the odds in order to equalize the betting on both sides of a bet. Thus, even though a bookie is not able to control the outcome of a game, they can control how much they win or lose.
In the end, the bookie does have the mathematical advantage over the players since they control the odds. Even though they do not always win money on every game, they do on the long run. This is because players will make bad bets that are often based on emotions or hunches.
Lessening their Risks
Of course, bookies would rather have bettors that lose on a regular basis over the ones that win. This is because this is more money that stays with them. However, it is not unusual for some of their clients to go on a winning streak. When this happens, they usually deal with it in one or two ways.
The first is usually done by smaller sports betting operations where they will stop taking bets from them. The second way is to place that same bet with a larger sports betting company to lessen their losses.
In addition, a successful bookie knows his clients and his own bankroll. Thus, they will always maximum wagers for all of their players and sometimes for specific players to lessen their losses.
Bookies Use a Pay Per Head Service to Increase their Profits
In the last couple of decades, bookies have been using the Bookie Pay Per Head Solution to increase their profits. This is because companies like PricePerPlayer.com gives them a fully loaded sportsbook for only $5 Per Player.
This means that instead of paying for an expensive software, infrastructure and monthly salary, bookies only have to pay per active players. A good Pay Per Head Service like PricePerPlayer.com gives bookies: