How Much Profit do Bookies Make?
Bookies are people that accept action on various sports, and most bookies have an average weekly hold percentage of around 5%.
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The hold percentage is simply calculated by dividing the gross winnings of the bookmaker by the gross dollar amount of bets that were accepted. This will be the profit that bookies make, and the more volume a bookie has then the more profit he will make each week.
However even though the industry average is around 5%, there are pay per head companies that offer services to bookies that have even higher hold percentages. For example one of the sharpest books in the market is AcePerHead.com and their current average weekly hold percentage is running at 14%. This is a huge difference of 9% which over the course of the year will lead to a huge increase in overall profit for a bookie using Ace Per Head, compared to a more standard PPH shop.
The reason that Ace Per Head has such a higher hold percentage is because they have very sharp lines that are constantly being moved up to the second, to prevent players from getting better lines. Ace has some super sharp players that use their platform, and as a result, these sharp professional bettors enable Ace to see moves before they even happen and adjust the line faster than most pay per head companies.
In addition, Ace is very aggressive on halftimes and with moving the juice on games. Both of these scenarios add to an increase in their hold percentage which directly goes into the bookies' bottom line profits.
Also how much profit bookies make will depend on how many players they have betting with them in a given week and what size bettors they have. Clearly, the formula is that the more players you have and the more volume and higher wager amounts the players bet then the more profit you will make over the long term.
However you donít need hundreds of players to be a profitable bookie, it all starts with a handful of players. Even if you just have 3 players that are consistent bettors that bet each day and multiple times a day at wager amounts of $50 to $100 a game then these players can lose hundreds of dollars per week.
Another important thing to remember is that you need to pay your players efficiently and fast when they do win because this will actually help you to get more players over the long term. The biggest way to acquire and grow your betting business is by word of mouth, and if you pay people in full and without delay, then people will definitely appreciate it and recommend you to their friends that bet. Also now that betting has become more mainstream people are not afraid to talk about the bets they make with their friends, which will lead to them referring you to their friends since you have built up such a good reputation for paying quickly.
So if you want to be a profitable bookie then the key is to grow your business, make sure you pay your current players in full and as soon as possible and to use a pay per head company like Ace that has a higher hold percentage. Each of these things will add to your overall profit margins.
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