As sports betting is becoming more popular across the globe, so is the competition amongst sportsbooks and bookies. For smaller sports gambling operation, it becomes quite difficult to compete against sportsbook giants with deep pocket. This is where the sportsbook Pay Per Head companies shines as they are the great equalizer in a tough industry. Thus, let’s take a look at How Pay Per Head Companies Makes Bookie Businesses More Profitable and why you should use one.
The Cost of Running a Bookie Business – Expenses, Revenue and Profits
To start with, running a bookmaking operation is not cheap when it is done the traditional way. This is because even if it is an online sportsbook, there are many monthly costs to take care of. Such costs include, paying salaries, month hosting and bandwidth, sports betting software fees and of course, money for payouts.
In addition, money must be put aside for revenue taxes and yearly licensing fee for your gambling operation.
Of course, the operational cost will vary depending on the scale and the services of the operation. Therefore, it can be a few thousand dollar per month to tens to hundreds of thousands of dollars. While estimating the amount can be tricky, there are ways to estimate how much money you need to be a bookie.
Therefore, a bookie must make enough revenue to cover all of these costs. In turn, it also means that they must have enough customers who wager enough every week. Last but not least, the amount must be enough to not only cover the operational cost but also enough to make a living. We will not go into details on how bookies make money but they mostly make money from the Vig.
Reasons Why Pay Per Head Companies Make Bookie Businesses More Profitable
It is simple business 101 that to make a profit, the revenue must be more than the costs of operation. This is where a sportsbook pay per head company comes into play. This is because they are made especially to help bookies profit by sharing betting software technology at a low cost.
In layman’s term, it is a one-stop-shop solution for bookies and sportsbook operation. This is because they have the infrastructure, employees and software to run and operate a gaming operation.
Thus, a bookie is paying them to have access and use their employees for a weekly fee. The fee will vary but the best deal is with PricePerPlayer.com as they charge only $5 or less per player.
Using these numbers, if a bookie has 100 active player per week, they would pay $2,000 a month to run their sportsbook. In comparison, $2,000 a month does not even cover the monthly salary a lines manager for a sportsbook. If you add server fees, software updates and software licensing fee, this is just a drop in the bucket! Therefore, bookies are saving a substantial amount by using a pay per head service.
If that same bookie has a modest weekly betting handle of $50,000, he earns between $4,000 to $4,500 per week. Since the PPH service is his only operating cost, then the bookie makes $3,500 to $4,000 in profit every week!
Why You Should Use a Bookie Pay Per Head for your Sports Betting Business
Money aside, there are also many reasons to use a Bookie pay per head to run your sports betting business. The first reason is because you do not have to worry about managing employees or customer service for your players. This is because this is all part of the service. For example, if one of your players needs help placing a bet, the PPH will take care of it.
In addition, you never have to worry about updating your sports betting software as that is part of the service. Staying at the forefront of the gambling industry is in the PPH’s best interest. Thus, you can rest assure that you will have access to the latest in wagering technology.
Open a Sportsbook with PricePerPlayer.com for $5 or Less Per Player
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