Running a successful sportsbook doesn’t require knowledge or love of sports. Bookie software agents should understand what players look for when making wagers, though. By understanding sports betting, bookmakers can ensure their sportsbooks remain profitable.
If you want to learn how to run a small sportsbook, you mustn’t immediately call up the buddy that gambles on everything, even how hot it will be in Phoenix that day, to learn how. Running a sportsbook doesn’t require a love of sports or even knowledge of sports.
For starters, gambling websites now offer much more than wagering on sports. The American bookie no longer exclusively takes wagers on sports. They also provide betting on casino and racebook bets.
All bookies in the U.S. use technology. Most have started gambling sites with technology from a pay per head company. Armed with sports betting software, pay per head service agents can provide sports wagering options on everything a much larger online sportsbook can. That’s how to run a small sportsbook, use bookie software.
But although a bookie mustn’t know anything about sports, or even be a fan of sports, it helps to understand sports betting. The most crucial aspect of any business is learning how to make and manage money.
If a bookie has no understanding of sports betting, what the words “spread” and “juice” mean, why parlays can hurt their business, etc., bookmakers can lose money even if their players are active.
Understanding How Bookies Make Money on Sports Betting
If you want to know how you can become a bookie, you can check out our page, How to Be a Bookie. The key to understanding how to be successful in running a sportsbook, though, means grasping sports betting. Why? Sports will always be your bread and butter. Sporting events are your best selling products.
There are two types of sports wagers. The first is called a spread or handicap. In this type of bet, players, or sports bettors, either lay points or accept points. Here’s an example of a game between two football teams.
Against the spread or handicap wagers
- New York -6 ½
- Los Angeles +6 ½
If the player wagers on New York to beat Los Angeles, New York must win by at least 7 points, or the player loses his or her bet. If the player wagers on Los Angeles, the underdog can lose by at least 6 points, and the player wins the wager.
Players that bet on New York start in a 6 ½ point hole. Players that wager on Los Angeles start with a 6 ½ point lead.
A question a person studying bets on sports for the first time may ask, “How do bookies set odds?” The answer? Sportsbooks talk to each other. Then, each specific sportsbook sets its line to acquire as much action on both sides of the spread.
When the same amount of action falls on both sides of the spread, bookies keep the juice. The juice is the name assigned to the fee that bookmakers charge players for providing wagering services against the spread bets. The cost is often 10% of the money wagered.
Understanding Moneyline Sports Betting
Sportsbook operators also offer moneyline wagers. Moneyline wagers are straight up, meaning players who bet on the moneyline win if the team they wagered on wins.
Check out a typical moneyline sports bet.
- New York +220
- Los Angeles -175
The odds on Los Angeles might confuse some. It’s relatively easy to figure out moneyline odds. If a player wishes to make a $100 profit off Los Angeles, the player must wager $175. If the player wishes to bet on New York, they’ll make a $220 profit for every $100 they risk.
For the right to bet on the favorite, players must wager more. If they like the underdog, they can wager less and make more.
The key to making money with your sportsbook is to manage bets
The best way to make money with your sportsbook is to manage wagers. When you become a pph sportsbook agent with us, you can access both a line mover and a layoff account.
The odds that show up in your sportsbook are from a reputable lines maker. However, if you wish to change odds, you can. The layoff account allows you to cut risky bets. It’s difficult for an individual bookie owner to acquire the same amount of action on both sides of a spread. You can use the layoff account to make the same wagers as your players.
If the player’s wager hits, use the layoff account winnings to pay off the player. If the player’s bet is a loser, use the player’s losses to pay off the layoff account.
When it comes to moneyline bets, set max betting limits, and max payout limits. Also, make sure players can’t put any moneyline bets into their parlays. Parlays boost odds by pooling wagers. If a player, as an example, bets a 3-team parlay, the odds on the parlay are around 6/1.
Bookies don’t make juice off parlay wagers. Hitting parlays are brutal, though. By their nature, parlays offer underlay odds, meaning odds on parlays aren’t fair. Set max payout limits on all parlay bets.
PayPerHead provides the most money-making software tools
We hope our beginner’s guide to understanding sports betting has helped. The most important thing to know is that sportsbooks are like any other business. Bookies make money by managing their businesses.
What’s the most critical aspect of any business? Cash flow. PayPerHead is the only company in the industry that offers an Agent Payment Solution. With the APS, agents can make online payments and collections. They must never meet players again.
Time is running out on our $3 per head for up to 3 months promotion. Make sure to import your players soon. Once you do, you can also participate in a top referral program, one that pays you $100 as soon as your referred friend starts their sportsbook with us.
