Now that the Supreme Court has ruled that states can legalize sports betting, many entrepreneurs are thinking about opening a sportsbook. As states scramble to legalize sports betting within their borders, people are wondering How much do Bookies Make.
Anyone asking this question is obviously thinking about becoming a bookie. However, this is a difficult question to answer because of the many factors involved to have a successful sportsbook. Thus, there is no straight answer to that question. Furthermore, not all bookies have the same goals which will also affect how much a bookie makes.
We can however estimate how much a bookie makes based on the number of players and the average sports betting handle. In addition, we can get an even more accurate picture if we know the cost of starting and running a bookie operation.
Calculating how much Bookies make
In 2017, the state of Nevada took $4.87 billion in sports wagers and earned $248,780,000 in revenue. This means that they had a hold percentage of 5.1%. The Hold percentage is the money the bookie keeps after all bets have been settled.
If we use these numbers as an average, then we can calculate how much a bookie can earn. Thus, if a bookie has 100 players that make $10,000 in bets per year, a bookie will make $51,000 in revenue.
Bookie Revenue = (Number of Players) X (Number of bets made per player) X the hold percentage
In addition, you can make it easier by using the PricePerPlayer.com Sportsbook Revenue Calculator to estimate your bookie earnings.
Smart Bookies Use a Bookie PPH to maximize their Profits
Now that we know how to calculate how much bookies make lets calculate the profits a bookie can make. First off, opening and operating an online bookie is expensive and will usually cost over a million dollars. This is because the sports betting software is expensive and you will have monthly expenses to keep your sportsbook going.
For example, according to the Bureau of Labor Statistics, the average salary for a “sports and gaming bookmaker or runner” is around $24,000 per year. Thus, this is another overhead you will have to pay to keep your bookie operation in business.
Thus, a bookie needs a lot of money to start a Sports Betting operation. That is of course unless he intends to take bets the old fashion way with a pen and paper. However, there is a solution to get around the expensive startup cost and monthly expenses. The answer is the Sportsbook Pay Per Head Solution!
Thanks to the PricePerPlayer.com Sportsbook Pay Per Head Service, thousands of bookies are making large profits with their bookie operation. This is because PricePerPlayer.com gives you all of the tools necessary to run a sportsbook for only $5 per player.
For only $5 per player, you get a fully loaded sportsbook, casino, live dealer casino and racebook. In addition, you also get a support staff for you and your players. This means that you only need to worry about finding new bettors and collecting money from them!
If you do the math, you will see that your profits will skyrocket by using the PricePerPlayer Bookie PPH Solution!