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In its blog Sunday, our friends at Price Per Player write of how to become a successful bookie through common sense practices like cost management.
Becoming a bookie in today's environment has never been easier thanks to the many outsourcing options that are available. Nevertheless, it is also among the most competitive industries as a result.
There are essentially three primary costs involved in running a sportsbook, according to Price Per Player:
Cost of the Sportsbook Software – A good sports betting platform will usually cost around $250,000 or more depending on the software you get. In addition, the more features you choose to have, the higher the cost of the software.
Cost of Maintaining your Operation – As every business owners knows, they are monthly bills you need to pay every month to keep your operation running. Even if your gambling operation is online, you still have to pay monthly server fees, upgrade and even utilities.
Cost of Experienced Employees – If you started you operation in Costa Rica, you would pay around $1,200 to $2,000 a month per employee. If you were in the United States you would pay 3 to 4 times that amount.
There are two ways to offset the high cost of an online bookie operation. The first is a white label sportsbook and the second is to use a Sportsbook Pay Per head Service.
The later is the business model employed by Price Per Head.
With the Pay Per Head platform, one pays a small fee per customer (per head), as low as $5 per player each week.
In addition, by using a Bookie PPH, you no longer have to worry about paying employees or maintaining the software.
- Aaron Goldstein, Gambling911.com
