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No money in the bank? It's no time to start a bookie business. Here is what you will need courtesy of our friends in the Pay Per Head community.
AcePerHead.com: "So if you have 10 to 20 players to start and they bet $500 to $1,000 a game you should have at least a 10k bankroll, because your players could easily get lucky the first couple of weeks and start off winning. Also, players that bet $500 to $1k a game can easily win a few thousand dollars a week."
PricePerPlayer.com looks at six months and offers the following calculations based on six bad months as a cushion. It's best to enter the industry with the mindset that you will have losing months. Six losing months may mean you shouldn't be doing this.
If first 6 months of operations are bad, you will need at least $70, 125 to stay in operation*
If first 5 months of operations are bad, you will need at least $58,437 to stay in operation*
If first 4 months of operations are bad, you will need at least $46,750 to stay in operation*
If first 3 months of operations are bad, you will need at least $35,062 to stay in operation*
If first 2 months of operations are bad, you will need at least $17,937 to stay in operation*
If first month of operation is bad, you will need at least $11,687 to stay in operation*
AcePerHead suggests limiting players early on as a form of protection.
"For a player to win say 3k in a week and bets 1k a game that would mean he only would have to win 3 games a week or just be up 3 units during that week which is not unlikely. So if you have these type of larger bettors to start out with, but don’t have that much of a bankroll then it would probably just be better to start off with much lower limits, and then you can just tell your players that at the moment the limits will be $250 and after you build some trust and comfort with them then the limits can be raised."
PricePerPlayer offers a useful Bookie Revenue Calculator, found on the right of the page here.
The calculator considers your hold percentage and average monthly turnover as well as the monthly deposit per player.
- Aaron Goldstein, Gambling911.com
