How Can I Run My Own Sportsbook?

You've probably seen the ads on television. In fact, you've probably seen the ads a few times per hour, especially during live televised games.

Sportsbooks like FanDuel and DraftKings flood the airwaves, even in states where these companies are not regulated (i.e. Florida). 

That begs the question: Can I start my own sportsbook and rake in the big bucks like FanDuel and DraftKings? 

The answer to that question is a resounding YES. 

Pay Per Head services offer a software platform and 24/7 customer service to do exactly THAT. 

What Are Bookmakers and How Do You Become One?

What are bookmakers? 

Bookmakers are in charge of setting odds on an event to predict how it will play out statistically and using them to set the bet’s payout ratio (how much you can win). They’re often considered gamblers themselves because they take a risk every time someone places a wager through them against what happens in real life.

It’s known that bookmakers are usually people who have extensive knowledge of the sport in question and how its statistics typically play out.

You do not have to have this type of extensive knowledge when utilizing a Pay Per Head service, however. The PPH provider does all the work for you, including setting the odds and maintaining reports for each player. 

The 5 Steps to Running Your Own Online Sportsbook

Step 1: Make Sure You Have the Necessary Skills

• Make Sure You Have the Necessary Skills - You will need to have some understanding of probabilities and stats as sports gambling is all about numbers. 
• Business Administration - A lot goes into running your own business. One very important aspect is time management. You need to prioritize tasks that provide added value to your service, and you also need to have some basic accounting skills. This last one has become an easy task for bookie agents thanks to comprehensive betting software that provides great reporting, effectively cutting your work time by 2/3 at least.
• Sports Gambling - Yes, you will obviously need to know a thing or two about sports betting. As noted above, you don't need to have extensive knowledge per se. 
• Sales Skills - A critical factor in becoming successful in this industry is acquiring and retaining customers. So, you need to be an excellent salesperson and excel in customer service at the same time.

Step 2: Securing Funds

Every business venture needs capital, and starting a sports betting service cannot happen unless you have the capital to back it up. Think of your sportsbook as you would a bank.

Banks must secure huge investments to operate; they cannot rely on the money their customers deposit to start operating, and the same goes for sportsbooks. Your players need to have full confidence that you can pay them their winnings every week. Now, you and I both know most bettors don’t consistently win every week, but even the worst player in the world will enjoy a winning streak occasionally. If you cannot fulfill your duties as a bookmaker, then your business will go under in a matter of days.

Step 3: Get the Best Pay Per Head Service Available

Most bookie agents don’t have the resources to start a sportsbook on their own. This is where the Pay Per Head provider comes in. 

These companies offer top-of-the-line everything: line managers, IT engineers, customer service, service providers, and software platforms, and best of all, their pricing is as low as $3 per head. AcePerHead.com is even running a unique promotion whereby bookies and agents get one FREE week per month for life. 

Step 4: Go Tech

Don’t let anyone fool you; online sportsbooks rely on technology, not just to power the website and accept wagers, but to offer features that local bookies and even sportsbooks in Vegas can’t offer their clients.

This means the ability to offer live betting, casino games, and even horse racing. A dedicated server alone costs thousands of dollars per year. 

With the Pay Per Head platform and service, this cost is included in that weekly price of as low as $3 per client.

Step 5: Choose your Clients Well

There are all kinds of players out there; some will prove to be very profitable, others will be a little less, and others will bankrupt you.

Most will want to stay away from the later ones, but if you know how to use them, you can make a profit off them too. 

Know your clients: Friends, family and maybe even co-workers. Just be mindful that not all of your friends, family members and co-workers are reliable, sad to say. Choose wisely.

All it takes is one reckless client engaging in unscrupulous activities to cause all types of headaches. 

Follow Local Laws 

Always consult with an attorney and review your local laws. While sports gambling today has gone mainstream, you will need to pay your taxes just as you would running any other type of business.

In many respects, the Pay Per Head acts as an affiliate site. The key difference is that you get a much larger cut of the business whereas affiliates typically take in approximately 30 percent. After fees, you as the bookie are realistically seeing around 85 percent of the revenues.

- Don Shapiro, Gambling911.com