There are some hefty costs involved with operating a big commercial online sportsbook these days. With more and more diehard sports fans betting on the games, business is booming from a monthly handle standpoint.
The monthly betting handle is tied to total volume. Online sportsbooks make their money on the hold on that volume. A book’s hold percentage is the difference between the money paid out on winning bets and the money collected on losing bets plus the standard industry commission or juice of 10%.
Sportsbook Review – America’s Bookie Big Bonuses and Fast Payouts
OffShore Bookies Offer Benefits to High Rollers
The offshore sportsbook industry has been around for more than two decades with many of the top-rated sites catering to the entire US industry. This includes states that allow sports betting within their borders as well as states like Texas and California that do not have any laws on the books for in-state betting sites.
There has always been a level of confusion as to whether or not offshore books were legal betting outlets in the US. Part of the landmark US Supreme Court decision in 2018 over legal betting struck down the federal government’s right to govern and regulate sports betting.
US-based sportsbooks started to spring up the past few years in light of that historic ruling. There are any number of differences between offshore books and their US-based counterparts. The one thing they do have in common is a regulated playing field to ensure fair and safe betting practices.
Offshore books are regulated by jurisdictions such as Costa Rica. US books are regulated by whichever states they decide to operate in.
From a cost standpoint, offshore bookies have a huge edge. They are not faced with a large tax rate charged by many US states. Their cost of new customer acquisition is also much lower as US books pour millions of dollars into media advertising and promotional offers to attract new betting customers.
Because of these added costs, US books have much stricter guidelines for betting limits. The offshore books have always welcomed the high rollers while the new US books are trying to limit that action.
OffShore Bookies Are Less Likely to Limit Bettors
This takes us back to the discussion about a book’s monthly hold. The typical offshore book can average a hold between eight and 10 percent. Some months it can be higher. The US books are strapped with a lower hold maybe down to five to seven percent based on all of these added costs.
Promotional spending on new customer acquisition comes right off the top. That automatically lowers a US book’s hold. Raising betting limits does not really help their cause in light of those higher costs. They would rather spread the action out among a wider base of betting customers.
Offshore books are more than happy to work with recreational bettors and high rollers. They offer low betting minimums to appease the first group while raising the stakes for bettors looking to place big money wagers.
The average recreational US sports bettor may not be concerned with US books and betting limits. However, avid sports bettors are extremely concerned about online books limiting their bets.
The easily solution is to opened up an online betting account at any number of top-rated offshore books. They will welcome your business with open arms and reward you for your online activity in ways that will actually boost your online betting bankroll.
