What You Need to Open a Sportsbook
To open your own sportsbook, you just need a few players and a quality pay per head.
The best pay per head services will offer sports betting on all major sports around the world. In addition, they also will include live betting, horse racing, online casino and a live dealer casino. PricePerPlayer has been with the Gambling911.com family now for five years and is available for only $5 per player with no hidden fees.
The right financial backing is also necessary in order to pay for the PPH service, payout players and for advertising.
The later might not be necessary if you start off with a loyal player base and work off word of mouth referrals.
Assuming you have a good month on how much money is needed for becoming a Bookie:
Basic Assumptions for the Estimations
Type of Bookie – Credit Shop
Number of Player: 25
Operating Costs: Since most bookies run their betting shop out of their home, we will assume that the operational cost will be $5 per player
This is based on using the PricePerPlayer.com Bookie Pay Per Head Service for a total of $500 Per month.
Player Credit Limit: $1,000
Max Bet Allowed: $500
Bonuses: none
Banking Costs: 5% Banking Fees
Estimated Monthly Turnover: Total amount of money wagered every month by all players
(Number of players x (credit limit x Max bet/100)) x 5 = $125,000
When do you settle up – end of each month
50/50 Action – You have excellent line and you have 50% action on both sides of each wager
Vig/Commisssion – 10%
Bookie Profit/Loss for a Regular month
50% of the players get a payout that average 65% of their credit limit ($8,125 )
50% of the players that lose, average a loss of 85% of their credit limit($10,625)
your monthly fees are $1,437
Your Vig/Commission is: $5,312
This means that you end up with a profit of $6,375
One bad month will likely cost you $11,867.
Three bad months $35,062.
If you are unfortunate enough to have six bad months, you probably shouldn't be doing this, but your bankroll will likely need to be in the $70,000 range.
In other words, before starting your sportsbook, you should have a minimum of $70,000 in the bank, even when using a pay per head service.
- Aaron Goldstein, Gambling911.com
