Although most horseplayers will continue to play the ponies through larger sportsbooks, there are benefits to horse betting online with a pay per head agent-run platform. Check out the top horse betting advantages you can offer your players.
The coronavirus pandemic caused havoc for most forms of gambling. One sector of online gambling thrived, though.
While sportsbooks took a hit after the NBA and NHL shut down their seasons, online horse betting thrived. Companies like Churchill Downs delayed their most prominent races. The Twin Spires ran the Kentucky Derby on the first Saturday in September instead of the first Saturday in May. Still, there was never a time in 2020 when every racetrack in the United States had its doors closed.
Fonner Park in Nebraska never shut their doors. Racetracks like Santa Anita, Belmont Park, Gulfstream, and Churchill, owe a debt to Fonner.
Fonner proved you could run a successful track without a single on-site patron attending the races. About a month after the pandemic broke, Churchill opened to jockeys, trainers, and owners.
Churchill’s opening day produced a record handle. So did Santa Anita’s. Other racetracks, including Gulfstream Park and Oaklawn Park, are thriving even though they offer limited if any attendance.
Bookie software agents should never expect to get rich off their horse racing betting platform online. They can make steady revenue from horse racing, though.
How horse betting operators differ from online sportsbook operators
What is a bookie? No matter your answer, it will differ from someone who offers bets on horses.
Most players don’t call bookie agents looking to bet on a horse race. The Kentucky Derby, Preakness, and Belmont, yes, but races that happen every day won’t ever provide you enough action for you to run a real racebook.
That’s okay, though, because you are a pay per head agent. You aren’t a racetrack operator. Horse racing tracks don’t make money on wins and losses.
Santa Anita Park doesn’t care if a horseplayer wins a race. Neither does Churchill Downs, Belmont Park, Del Mar, Gulfstream Park, or any other A designated racetrack.
What racetracks care about is the handle. Racetracks get a cut of every dollar bet on every race. Racetracks like Churchill Downs care only about the amount of money bet on races, not which horse wins the race.
In 2014, Churchill Downs increased their takeouts to the maximum allowed by Kentucky law. The takeout on win, place, and show wagers increased to 17.5%. The takeout on exotic races increased to over 22%.
Since 2014, Churchill Downs Inc.’s stock price has climbed from around $30 to $40 to close to $230. That has nothing to do with the fact Authentic won the 2020 Kentucky Derby.
It has everything to do with the takeout. Per head agents can’t take out profit from every dollar wagered on a horse race.
Pay per head agents provide the same horse bet opportunities as online horse race betting companies
Oddsmaking agents who run PPH sportsbooks don’t want to compete with the large betting online horse racing books. Competing with those companies, like Twin Spires, BetAmerica, TVG, etc., is a losing cause.
But bookies can offer the same sorts of things that horse racing digital platform organizations provide. Check out the list of what your PayPerHead horse racing platform entails.
- A-tracks – Santa Anita Park, Belmont Park, Oaklawn Park, Fair Grounds, Del Mar, Gulfstream, Aqueduct, Keeneland, etc.
- Big races – The Kentucky Derby, Preakness Stakes, Belmont Stakes, Breeders’ Cup race, Dubai World Cup, Pegasus World Cup, etc.
- On-track odds – You players get access to racetrack odds.
Horse racing money management
We ended the last section with on-track odds for a reason. Because you don’t get a cut of every dollar wagered, you must be careful about allowing players to bet as much as they want on a horse race.
Unlike spread wagers, where players pay you a fee, odds in horse racing are almost always at above even money. Also, horseplayers don’t pay a fee to make bets.
Brick and mortar racetracks include takeouts in the odds. If a player bets $100 on a 3-to-1 horse to win and the horse crosses the finish line first, you owe that player $300.
$1,000 on a 3-to-1 winning horse constitutes a $3,000 payout. In Red’s latest review, he talks about holding players to $100 parlays.
Depending on your sportsbook’s size, $100 seems like a good number on all horse racing bets. Also, set max limits on payouts, maybe, $1,000 for any race’s max betting limit, $200 total on a race, or something close to $200.
If you run a small sportsbook, make sure to turn it on for the biggest races, including the Kentucky Derby, Preakness Stakes, Belmont Stakes, and the Breeders’ Cup races. Turn it off on all other race days unless a player requests horse betting options on a specific race.
Add a PayPerHead horse racing digital platform for extra revenue
You won’t get rich off online horse racing bets, but you can make extra profit. If you turn on your racebook, stick to the things we discussed, like setting max payout limits and max betting limits.
If you have yet to import players to PayPerHead, do so soon. With us, you can offer free betting platforms like Premium Live Dealer and Premium Casino.
Our customized sportsbook software is proprietary. We can upgrade much quicker than our competitors. Also, by joining, you can take part in the best referral program in the industry.