According to a recent American Gaming Association report, people gamble more than $500 billion every year through sportsbooks and casinos. With this in mind, becoming a bookie might sound like a fantastic idea to you.
But before you begin offering sports betting and casino options to people interested in gambling money, you’ll need to know the answer to the question, “How do bookies make money?” Otherwise, you may not be able to generate the type of money you might be anticipating.
So, how do bookmakers make money? Discover how they do it below.
First, What Is a Bookie?
Prior to answering the question, “How do bookies make money?”, we want to kick things off by answering the question, “What is a bookie?”
A bookie, also known as a bookmaker, is someone who helps those interested in gambling money through a sportsbook. More often than not, bookies will accept bets from these people on sporting events, though some bookies will also run casino operations.
As a bookie, you’ll be responsible for providing your clients with betting odds. They’ll place bets through you based on these odds, and you’ll be in charge of taking these bets and settling them.
How Do Bookies Make Money?
Now that you know what a bookie is, let’s get into answering the question, “How do bookies make money?” There has been a ton of speculation surrounding this question over the years.
Many people are under the impression that bookies make money when those who place bets through them lose. But this isn’t usually how things work. Because while Client A might lose a bet that they put in on Team A, Client B might win a bet that they put in on Team B, thus canceling out Client A’s loss.
So then, how do bookmakers make money? Well, they typically make money thanks to the “vig” that is attached to every bet they place. Also known as “juice,” this vig is wrapped up into most of the bets that you will take as a bookie.
When Client A places a bet on Team A to win a game, they’ll have to bet about $110 to win $100. Client B will also need to bet about $110 to win $100 on their bet on Team B.
That will leave $220 on the table and give either Client A or Client B the chance to win $210 (their original $110 bet plus $100 for a win) in the end. It’ll also leave an extra $10 that will go to the bookie who accepted these bets in the first place.
Do All Bookies Make Money?
After hearing about how bookmakers make money, becoming a bookie might sound better than ever before to you. But it’s worth noting that not all bookies make money.
To be a successful bookie, you need to attract your fair share of bets. You also need to utilize pay per head bookie software to get access to the latest sports betting lines.
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