With the right sports betting software, there’s no telling how much do bookies make.
Although the coronavirus pandemic affected revenue generation, most individual sportsbook operators had no problem weathering the storm.
Strike that last sentence. Bookies who used bookie software had no trouble keeping their sportsbooks afloat. There were a few reasons for that.
First, PayPerHead agents could use the company’s betting software for free. These agents didn’t have to pay a dime from the start of the sports shutdown to August 10.
Second, per head agents pushed non-traditional betting options such as the digital casino, the online racebook, and the live dealer casino.
Third, and perhaps most importantly, players decided to make non-football, basketball, and baseball wagers.
All of it has added up to a fall and winter football season that could blow by last year’s total revenue, which is why the answer to how much do bookies make in a calendar year is as much as they want.
Like all business owners, bookies should set revenue targets.
All business owners set targets. People who run businesses where they sell a lot of products or a single product a lot of times during 30 days, set monthly revenue targets.
Those business owners must keep track of inventory per month. When there isn’t a pandemic, businesses like restaurants must keep track of stock daily.
Bookmakers should think of revenue on a monthly and then a yearly basis.
We call bookie sportsbook owners pph agents after they sign-up with a gambling software providing company. Pay per head services companies charge every month. What these companies charge depends on how many players a bookie has.
Maths of How Bookies Make Money
The charge is per unit. Check out an example.
- The bookie provides betting services to 10 players
- Cost per player is $13
- Total cost per month is $130
The overhead for a bookie with 10 players per month is $130. Now, the bookie knows he or she must make at least $130 per month to break even.
The bookie can break down the $130 into quarterly revenue, monthly revenue, or our favorite, seasonal revenue.
How does a bookie make money with seasonal revenue?
A bookie makes seasonal revenue by concentrating on a season or two, where they get most of their revenue. The reason this is our favorite is because this is how many bookies operate.
Many bookies make most of their revenue from a single season during the NFL and college football seasons.
Calculating seasonal bookmaking revenue
The way to calculate seasonal revenue is to a) go off past player habits or b) make future revenue assumptions. Some bookies use a combination of both.
The way to go off past player habits is to look at player reports. Betting software for bookies often provides player reports.
Pay Per Head bookmakers can access player reports without any issues. All pph sportsbook agents must do is check out last year’s player reports.
They can then strategize around those reports. If a player, as an example, wagers $100 each week on Denver, and Denver plays 16 regular-season games, the revenue is $1,600.
The bookie can now assume how much in fees the player will generate. The assumption is 10%. So, 10% juice from $1,600 equals $160. The player can use the layoff account to ensure they keep the $160 in vig.
Making future seasonal revenue sportsbook betting assumptions
Let’s consider 10 players who bet on sports through a bookie. We’ll assume the bookie generates $100 from each player each week during a 17 game NFL Regular Season.
- $100 x 10 players equal $1,000 per week in revenue generation.
- $1,000 times 17 weeks equals $17,000 generated for the NFL season.
- $17,000 x 10% juice equals $1,700 in profit.
- $130 per month x 12 equals $1,560 per head sportsbook fees.
- $1,700 minus $1,560 in fees equals $140 profit.
The bookie has made $140 in profit just through seasonal betting. But, the bookie will most likely make much more than that.
In our assumption, we shut off wagering after a 17-game regular season where 10 players wagered $100 per week.
We didn’t consider the NFL playoffs, college football games, the college football National Championship, and the most wagered upon sports event per year, the Super Bowl.
We also didn’t count the NBA, MLB, the NCAA Men’s College Basketball Tournament, horse racing, digital and live casino wagering, and non-traditional betting options like the U.S. Presidential Election.
Per year how much can bookies make?
How much bookies make per year depends on the pph agent. Bookmakers make as much money as they desire.
The key is for sportsbook owners to know their players. By doing so, they can calculate seasonal or yearly revenue. They can even calculate monthly revenue if their players are consistent in the racebook or casino.
The best thing for bookies to do is to import their players. Only Payperhead.com offers the most funding and payment options, including credit cards. They can also profit from one of the top referral programs in the industry and take advantage of our $3 per head for 3-months promotion.