The Evolution of the Sportsbook Pay Per Head Industry

Sportsbook Pay Per Head IndustryThe Pay Per Head concept has gained tremendous popularity since its inception in the early 1990s.  This is because it has proven to be a convenient and time-saving service for bookies all over the world. Today, they are over 50 known Sportsbook Pay Per Head Providers available to bookies and agents. The big question is how this industry got started?  We try to answer this question in our Evolution of the Sportsbook Pay Per Head Industry.

Before we get into the history of sportsbook PPH, we need to understand a few things about the gambling industry.  First, that the gambling industry is the fastest growing in the world and has an annual growth of 10.81% CAGR. In addition, gambling revenues are expected to double by the end of 2024 to $96.89 billion in revenue.

Needless to say, this has become a big incentive for bookies to look for ways to expand their current operations. The biggest problem facing a bookie looking to expand or modernize was the cost of the bookie software. That problem was solved with the Sportsbook Pay Per head concept which came about in the mid-1990s.

The History of the Sportsbook Pay Per Head Provider

White Label Sportsbook and Agent Websites

Evolution of the Sportsbook Pay Per Head IndustrySeveral Bookie PPH companies claim to be the first ones to offer this type of service. We will not get into which one was the first as it is impossible to fact from fiction.  This is because several sportsbooks and sports betting software companies offered that service but under different names. These services were not advertised and the deals would vary from sportsbook to bookie.

For example, you had large sportsbooks that would give agents their own website and charge them a percentage of their revenue.  This would later be known as a White Label Sportsbook operation.  Basically, a client would pay the sportsbook a setup fee and a percentage of the revenue every month.  In exchange, they would be under the license of the sportsbook and have access to their sports betting software and client support.

However, the first Sportsbook PPH providers came about when agents did not want to share their profits with the sportsbooks.

Sportsbook Pay Per Head

The Start of the Sportsbook Pay Per Head Boom

The Start of the Sportsbook Pay Per Head BoomThe first Sportsbook Pay Per Head services were pretty basic and consisted of a simple website and betting interface.  The agent did not have a look of control over his players and he had to contact the PPH provider to get anything done.

In addition, the cost per player was pretty high compared to today.  On average, Sportsbook Pay Per Head companies would charge between $40 and $65 per player. Furthermore, the technology was still in its infancy and sometimes the system would go down during the weekend.

The breakdown in quality during was because during this Sportsbook PPH Boom, many of the operators were former sportsbook employees.  They had no experience running such an operation from a management and technical point of view. In addition, these employees did not have the financial and infrastructural resources to effectively run a smooth operation.

In most cases, they acquired the ASI Software from the sportsbook and used the agent feature to start their operation. Overtime, the luckier ones stayed in business and improved their infrastructure and software to what it is today.

Today’s Sportsbook Pay Per Head Operations

PricePerPlayer Sportsbook Pay Per HeadThe Bookie Pay Per Head industry has come a long way in just 20 short years.  In fact, bookies that use a PPH service are now able to compete with the big sportsbooks. This is because of the many features that are now available with most PPH provider.

Today, most sportsbook pay per head providers will offer most the following service and features:

  • Custom website
  • Custom toll-free number
  • Betting Menu
  • Phone wagers
  • Technical and customer support
  • Live Betting
  • Online Casino
  • Live Dealer Casino
  • Mobile Betting
  • eSports Betting
  • Virtual Sports Betting
  • Player Management platform
  • Reports
  • And a lot more…

During the history of the Sportsbook Pay Per Head industry, became one of the more prominent PPH provider.  This is because they focused improving their products and infrastructure while providing top notch customer service.

If you are looking for the best Sportsbook PPH service in the industry, is the your best bet!

Click Here to Open your PPH account Today!

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