Do you realize that DraftKings has been around for more than a decade? It’s only just now starting to turn into a profitable company. But it was first founded way back in 2012.
Initially, DraftKings was a company that allowed people to take part in daily fantasy competitions. But as sports betting has been legalized in more states, it’s also transformed into one of the best online gambling websites around.
So, how does DraftKings make money at the moment? And what percentage of winnings does DraftKings collect when you use their site?
Find out the answers to these questions below.
How Does DraftKings Make Money?
As we just alluded to, DraftKings is still working on turning itself into a profitable company. The DraftKings income gets swallowed up by the company’s development and marketing efforts each year.
But it has an income in the first place because of the different services it offers. They help DraftKings manufacture profits seemingly out of thin air.
First and foremost, DraftKings sets up daily fantasy contests for its users. People pay a certain amount of money to create daily fantasy lineups in different sports and compete against one another. DraftKings collects a cut of this money and pays out the rest to the winners of these contests.
DraftKings also makes money by offering sports betting in many states. The company has created sports betting websites for various states and takes a cut of all the wagers that are placed on them based on how players fare on these sites.
What Percentage of Winnings Does DraftKings Take?
Now that you know about how DraftKings makes money, let’s discuss how much money they make by offering their services. Most of the money the company made at first came from the daily fantasy contests that it set up.
As we already mentioned, these contests call for people to pay a certain amount of money for the right to set up daily fantasy lineups. They then compete against other people who do the same thing for the right to collect large prizes at the end.
DraftKings helps facilitate all of this by providing people with the necessary platform to participate in these contests. They also take a percentage of winnings from every contest that is often in the 10% range. That means that the winners end up splitting 90% of the total pot, and DraftKings gets the rest.
DraftKings takes a similar approach to its sports betting websites. They allow people to place sports wagers through them while attaching what’s called a “vig” to each bet.
This vig explains why people often have to bet $105, $110, or sometimes even $120 to win $100 on a bet. The extra $5, $10, or $20 is used to ensure that DraftKings turns a consistent profit. By taking this percentage of winnings, they’re able to make money while assuming very little risk on their part.
Could You Offer a Better Product Than DraftKings?
Because DraftKings has been around for so long, you might not think there is any way you could possibly compete with them. But you may be able to become a bookie and offer any clients you’re able to pick up a better product overall.
You can establish your own sports betting website through the use of pay per head services and give your clients a more personalized betting experience. They might be more than happy to place sports bets through you rather than letting DraftKings keep a percentage of winnings.
How Does AcePerHead Service Help Bookies?
Do you want to become a bookie? Are you just looking to take your business to the next level? Here’s how AcePerHead service can help.
Provides You With an Online Betting Website
Online betting has been around for quite some time now. But for a long time, bookies have found it difficult to transform themselves into online bookies because of the costs associated with starting an online betting website.
If you wanted to set up your own sportsbook, it would typically cost you thousands of dollars. You would also need to pay monthly fees to keep your website working the way it should.
The AcePerHead service will set you up with the sports betting software you’ll need to get your very own website off the ground. You won’t have to worry about spending a small fortune to do it anymore.
Keeps Track of Your Clients’ Sports Bets
In the past, bookies had to keep tabs on their clients’ sports bets using little more than just a pen and paper. It made the simple act of accepting bets and getting them squared away more time-consuming than it should be.
This is yet another area in which the AcePerHead service can help online bookies. You’ll be able to monitor all your clients’ sports bets using the sports betting software that’ll be provided to you.
You can also adjust the limits for your clients accordingly and make them higher or lower based on how much risk you want to take on. It’ll give you so much more control of your sports betting operation.
Creates Passive Income With Your Bookie Business
There wasn’t anything passive about the income that bookies used to bring in. They had to work hard for every single dollar they made.
But nowadays, you’ll feel like you’re making passive income when you run a sportsbook business with the help of the AcePerHead service. It’ll let you sit back and count all the money you’re making without having to put in too much effort on your part.
Even if you have over 50 or 100 clients, you won’t need to spend all your time fielding phone calls and texts from them. With the assistance of the AcePerHead service, everything will be smooth sailing for you from here on out.
Look Into Setting Up a Sports Betting Website
Does the idea of starting up a sports betting website appeal to you? AcePerHead can help you do it and give you an opportunity to collect a percentage of winnings from your clients. The best pay per head services will put you in a position to do it while only costing you as low as $3 per head to start.
Read more about how a pay per head sportsbook will work and see if starting one would be the right move for you to make.