The ability to bet on sports and sporting events is rapidly expanding in the US market. It is also expanding in key markets all around the world. Long-term trends for online sports betting are even higher given an increase in availability.
Land-based sportsbooks are popping up in existing casinos and horse racing tracks all the time as more and more states legalize sports betting within their borders. There is also a proliferation of offshore sportsbooks catering to US sports betters through the use of an online betting platform.
Even with the added competition, the private bookmaker running and managing an online betting site still accounts for a large share of the billions and billions of dollars in annual sports betting volume in the US alone.
Pelican Pay Per Head
Today’s sophisticated sports bettor understands the added value a private bookie can bring to the table through elevated customer service and personal attention to detail.
The bottom line is that a private bookie can earn a rather lucrative return on investment with the help of a bookie services company such as PelicanPPH.com. The PPH stands for pay per head. That is a weekly per head fee that bookies pay for every active customer. In return, Pelican supplies everything needed to run and manage a highly successful independent sportsbook.
Just like any business venture, it takes proper planning and some start-up capital to get things up and running.
Since the bulk of your operational costs are covered in the weekly pay per head fee, the only other start-up money needed is enough cash on hand to more than cover the weekly betting action you will initially take in.
Understanding Hold Percentage
The primary way that any private bookie makes money is through a hold percentage.
This is the difference between the money paid out on winning bets and the amount collected on losing bets plus the commission charged to book the bet.
If your standard commission or juice is 10 percent on all bets, a hold percentage between five and 10 percent should add up to a healthy return if your betting base is properly balanced.
The difference between the payouts and collections plus juice would be considered your gross profit. Any operating costs are then deducted to come up with your net profit.
It stands to reason that the higher your hold percentage the higher your net earnings. Part of the planning process needs to include set financial goals for how much money you need or expect to make as a private bookie.
PelicanPPH’s Revenue Analysis Calculator
Pelican has made it easy to calculate total projected revenue as well as hold percentage and net profit. The basic calculations start with your projected betting base.
You do not need hundreds of weekly bettors to earn a solid return on investment but you do need a certain level of projected revenue to meet your goals.
Working with 10 bettors averaging $1000 a week in betting revenue can be a far more lucrative plan than working with 100 bettors averaging $100 in revenue a week.
The PelicanPPH online calculator lets you plan out any number of revenue scenarios based on the number of active bettors, weekly per head fees and overall profit.
This also allows you to build an overall plan that is designed to meet and hopefully exceed the financial goals for your bookie business.