It’s possible for online bookies to lose money on their own betting sites. Check out 4 ways all bookies, including you, can lose dollars running your own bookmaking business.
4 Ways Online Bookies Lose Money
1. Not understanding the difference between revenue and profit
Revenue’s betting action. Action is the lifeblood of your sportsbook business, but it’s not the end result. Hopefully, the end result is profit. The end results should be what’s left over after games are graded and you’ve paid out winning wagers.
Revenue doesn’t always translate into profit in your bookie business just like it doesn’t always translate into profit for a company like Tesla or Amazon. Because you don’t sell stock in your bookmaking biz, it’s even more important for you to turn your revenue into profit.
2. Not using per head management tools
How do bookies turn revenue into profit on a regular basis? They cut risk with pay per head tools like the layoff account, change lines with tools like the line mover, and promote games on which they wish to see action.
Let’s get back to the layoff account for a moment. If your sports bettors over wager a specific side of a spread, you can off load some of that risk via your layoff account.
Then, you can simply take the juice, the 10% you make for bettors to place wagers through your sportsbook, as profit.
3. Not pushing the online casino and online racebook
Both the online casino and online racebook are instant profit generators. When it comes to the online racebook, all bookies must do is set max win limits and max betting limits.
Lots of sports bettors wager on the online casino. For casino and the racebook, revenue is close to instantaneous because unlike sports betting, races only last around 2 minutes while a game of blackjack can last a minute.
More importantly, it’s much easier to turn horse racing betting and casino betting revenue into profit because neither favor players.
4. Not paying out quickly or collecting quickly
PayPerHead’s agent payment system allows for ultra-quick payouts and collections. It’s important that you do both, make quick payouts and make quick collections. You want your players betting in your sports book, casino, or online racebook.
The quicker you pay players, the quicker they’re likely to put the money back into your book.
Not only that, but you should always think about cash flow. How much is flowing in and how much is flowing out. So, if you make quick pay outs, demand players pay you quickly as well.
If you’re considering updating your sportsbook status to a pro-master agent, it’s time to speak to a PayPerHead rep. They’ve helped thousands of bookies, just like you, take their business to the next level.
Plus if you sign up for PayPerHead’s Prime Package today, you’ll get it all for just $3 Per Head.