Becoming a star in the bookmaking business takes time and commitment.
There are no overnight success stories in this industry. That’s actually a good thing, though, as it weeds out the competition that aren’t willing to put the work in to become successful.
How Much Money Do I Need to Start a Bookie?
Sorting out your budget and bankroll is the first step to becoming a star bookie.
Despite what you may think, launching an online sportsbook is inexpensive. You need to join one of the leading pay per head (PPH) sites, which will provide you with the software, odds and support.
Here’s what you need to budget for:
- Pay Per Head Fee: The average cost for a PPH service is $10/head, which is paid weekly. This means if you have ten players, the weekly cost would be $100.
Most PPH sites offer a free trial, so you can get several weeks for free before having to pay.
- Bankroll: The size of your starting bankroll will be dependent upon two things, the number of players on your sheet and how big your betting limits will be to start out.
If you start with ten players and a maximum bet of $100, you can get started with $1000-$2500. The reason you need an initial bankroll is because you may need to payout winners.
Tips for Becoming a Star Bookie
It’s possible to go from rookie to star, but it’s going to take some time.
Follow these actionable tips to make the path to stardom easier along the way:
- Pay on Time: You don’t want stiffs ripping you off, but your players will also expect you to payout on time. Set a weekly collection day to payout winners and collect from losers.
If you don’t pay on time, you’re going to be out of business as fast as you started.
- Manage Risk: You have to proactively manage risk to avoid going out of business. Sharps (long-term winners) or arbitrage bettors aren’t worth keeping on your betting sheet.
When you’re growing, it’s even more important to focus on finding casual sports bettors.
Managing risk will also entail making sure you’re not too exposed to a single outcome. As a PPH bookie, you’ll have access to a “layoff account”, allowing you to manage your exposure.
- Communication: Sports bettors join smaller bookies to receive better treatment. Make sure you have an open line of communication with your players and work with them.
If a loyal player has an emergency and needs a payment plan, work with them. It’s better to try and work it out with the player instead of potentially losing them as a client forever.
Building personal relationships with your players will pay off in the long-term.
If your plan is to become a star in the bookie in the industry, you need to follow these three key tips.
You need to be able to source new players, while also retaining your current players. The good thing is after the initial hard work, you can start hiring help as you become more profitable.