Opening a sportsbook business can be a tricky operation depending on where you intend to open your betting business. However, many bookies have found ways to make the process much easier by using a Sportsbook Pay Per Head service. Since the process is so fast and easy, Is a Sportsbook Pay Per Head legal?
The short and simple is yes, a Pay per head is legal and this article, will delve into its legality. Before we begin, we first need to understand, what is a Bookie Pay Per Head Service and its purpose.
By definition, a Sportsbook Pay Per Head is a sportsbook software service that leases its infrastructure to bookies. Therefore, bookmakers are able to start their own bookie business in just a few minutes. This is because it comes with everything a sportsbook operator will need to start and operate a sportsbook. This includes several sportsbook websites to pre-game lines, management tools and more. What makes it different is that instead of a monthly fee, it charges a weekly fee per active player.
Hence, it is just a tool that sportsbook owners and bookmakers use to take wagers and manage their players. Hence, unless a country or jurisdiction has a specific law against it, it is perfectly legal. Now, that we have a good understanding of a Pay per Head Service, let’s go into the details.
Is a Sportsbook Pay Per Head Legal? Yes, it is Absolutely Legal
Owning and operating a sportsbook is very different from providing the sportsbook software, platform, and infrastructure. This is because a Sportsbook Pay Per Head does not actually operate or own the sportsbook operation. In addition, the PPH service has no dealings with the financial situation between the bookie and their players. Hence, it takes and gives no money to players. All it does is keep track of it for the sportsbook owner.
Furthermore, it does not have any claim to a bookie’s players or in anyway have a partnership with the sportsbook. It is a simply exchange of service between a bookie and the pay per head company.
Some countries or jurisdictions may require a gambling software company to obtain a license within its jurisdiction. However, it is a moot point as most Bookie PPH companies are in Costa Rica or other countries. Therefore, they do not need a license to operate in certain jurisdictions that require a license. This is because they hold all necessary licenses where their facilities are in.
Is Using a Bookie Pay Per Head Service Legal?
While both questions are similar, they are totally different. A Bookie Pay Per Head Service is legal as it only provides a service to bookmakers and bookies. However, using a sportsbook pay per head service is legal depending on your jurisdiction and how you use it.
For example, you open a sportsbook using a pay per head service in a jurisdiction that requires a license. If you have all licenses, then your sportsbook is legal and are not using the service illegally. Even without a license, you can still legally use a PPH Service since you are paying for it. However, you are the one responsible for obtaining the proper authorization to operate a sportsbook. Thus, all responsibilities will be with the bookie and not the service provider.
So, the simple answer is yes, it is legal to use a Bookie Pay Per Head Service.
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