Do Bookies Make Money
Bookies accept wagers on sporting events and even though each bet can vary considerably, the end result is that bookies make money when their player’s wagers lose. How much money bookies actually make per year can vary substantially, but depends predominately on how much each of their players bet on each game and how many overall players they have betting with them each week.
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We look at how bookmakers set their odds so that they would make money off the bettors. A bit more on decimal and fractional odds: https://support.skybet.com. The other thing that bookies do to make money is to use a pay per head website that allows you to piggyback off their lines and betting platform. Price per head websites, such as AcePerHead.com charge a small fee of $10 per active player a week, and then in return, they provide the bookie with a website with thousands of betting options each day. So, the way bookies make money is by charging a commission (vigorish or vig). Using the coin flip example, the bookie would charge a commission on every bet. Instead of offering true off (+100), the bookies would juice both sides by making heads (-110) and tails (-110). Now every player needs to bet $110 to win $100.
Profitable PPH Business
Clearly though if you are a bookie then the more players you have and the larger amounts your players bet per wager will greatly increase the amount of money you will make each week and each year. Bookies with 100 plus players can easily make 100k a week, or in yearly terms over $5 million dollars a year. But once again if you have very small bettors or not a lot of bettors then the amount of money a bookie will make will be much lower.
But even if you are a small time bookie it doesn’t mean you can’t make a lot of money. So let’s just give some examples so you can actually see how easy it is to make money from booking action. Let’s just say you only have one player and he is a super small bettor that only bets $50 a game. If he only makes 10 bets a week and wins 5 and loses 5 bets he will still end up losing the 10% juice on each wager so even if he splits he will still end up losing money for the week. If he wagers $50 a game he will end up losing a total of $50 on those 10 wagers for the week, and over the years’ time that would be the equivalent of losing $2600 a year.
Now that is the smallest and most inconsequential type of better around because anyone that knows a gambler knows it’s an addiction and people like this don’t bet these small amounts and so infrequently. So instead these guys may start small but over time they will increase their betting volumes and frequency which just means they will end up losing more money over time. Also, bettors don’t go 50/50 on their wagers, they always loss on average anywhere from 60% to 70% of their wagers. So this means that even if a player loses 60% of his wagers that means he loses 6 out of 10 wagers which on 10 wagers of $50 each with the juice will mean he will lose $130 a week and $6,760 a year. So now if you have 10 of these super small basic bettors that still means you can be easily making at least $67,600 a year.
So that was just a simple basic example of a player that barely bets each week, but you can clearly see that if you have players that are slightly larger bettors that bet a bit more times each week then you can make so much more money. So let’s just say that you have a player that bets $100 a game and he bets 20 times a week and losses 60% of his games on average. That means he will win 8 times out of 20 bets and plus the juice this will mean he will lose $520 a week or $27,040 a year, and then if you have a total of 10 players just like him then you will be making on average $270,400 a year. Sure these are simple averages and players are not going to lose every single week, but they also are not going to lose only $520 a week when they do lose, because when bettors start to lose then they just start betting bigger and betting more games in order to chase the balance into the positive. However, this only makes it worse for the player and they just end up losing even more money.
So as you can see it does not take a lot of players or a lot of wagers for bookies to make money, however the more players and the more wagers they make each week, then the more money you will end up making as the bookie.
