Bookmakers have always earned well, regardless of the political situation, the state of the economy or culture. But online betting shops have experienced rapid growth in recent years due to the widespread penetration of the Internet. Now, even in small towns, people prefer to bet online, and this greatly affects how much bookies make.
But there are other factors that determine how much the betting shops make. These include the presence of a gambling license of the betting shop, an audience coverage, tax payment plan, etc. After all, profit is not the number of received bets, but the amount of money that will remain at the end of the month.
If you are interested in opening your own betting shop, we recommend you to find a reliable partner who will deal with legal, technical and marketing tasks. Fortunately, you have already got to the Bett-Market site. Provide us with your contact information and we can offer the best solution!
The activity of betting shops can be perceived in different ways. Some consider it as entertainment, the others as a way to get rich quick. From the point of view of law enforcement agencies, gambling can be used for money laundering. And only the owners of betting shops know exactly who earns on bets.
Of course, no firm will reveal the real volume of profits. But according to some statements and tax returns, you can approximately delineate the level of income. Small or new bookmakers receive up to $3-5 thousand a month, but only if they managed to successfully resist professional players.
The income of large offices is measured in millions and billions of dollars. These days, the profits of all bookmakers are almost equally divided between American companies and everyone else. This happened due to two factors: Hollywood and the high level of service in the US offices. Simply put, players trust them.
The scheme of earnings is as follows: the player bets on one of the options for the outcome of the event, most often sporting event, although talent contests and even political decisions are in demand.
If the bet is at the level of “win-lose”, and the chances are 1:1, then in the theoretical example the coefficient should be 2:0. That is, one side of the dispute will receive two wins, and the other — 0. This is how mathematics takes place.
But in reality, the coefficients are always fractional, for example, 1.85 or 1.91. This means that at the rate of 100 roubles, the player will get back his money plus 85 or 91 roubles. The balance, the so-called “margin”, goes to the account of the betting shop, which in this way minimizes its losses. And they, in turn, are easily compensated by the next player’s loss.
The betting shop’s profit consists of:
- lost bets;
- margins;
- competent line (list of events for betting and odds);
- understanding the audience’s demand and knowledge of its interests.
In a way, running the bookmaker’s office is an art. There are owners who manage to harmoniously combine all the components together, and there are those people who earn on the rates. Even with a little traffic on the site, you can have a stable income.
However, the expenses of bookmakers are also in the millions. Up to 70% of the income is used for advertising promotion, regardless of how much betting shops earn. You have probably seen ads of various betting shops on the most “top” places: in the subway, on the main streets, on television in prime time, when the hard workers gather in front of screens after a hard day.
In addition to advertising costs, the bookmaker constantly allocates funds for promotions, bonuses and loyalty programs. Their goal is not to attract a new audience, but to motivate players to bet on sports again. To ignore these methods is simply imprudent and to save on them is not necessary.
Of course, you cannot ignore the costs common to any kind of business: taxes, salaries, payment of hosting and domain.
Such factors beyond bookies control do not bode well for them:
- Experienced players or single-skilled sports experts who know exactly what outcome to bet and win fabulous sums. One such rate can devastate the entire reserve bank of the office, especially the recently opened one. It is difficult to resist such players, but you can always keep an additional cash reserve.
- The sudden outcome of the match. How do bookies make money? By the means of expected finals. But it also happens: the favourite loses or trail far behind. In this case, the office has to pay large amounts when they are not planned. Here the same recommendation will help: always maintain a full reserve fund.
Investments in the bookmaker business are among the highly profitable. But the difficulties with opening your own office often lie in licensing conditions that are unaffordable for novice businesspeople. Almost all jurisdictions in the world require confirmed ownership of a huge reserve fund, usually over $1 million.
It would seem, is it necessary to pass licensing for work on the Internet? Sure! Firstly, in the modern world, any person is easy to find even through the Internet, and if you break the law, you will be wanted. And secondly, the license is a guarantee of players trust. People who make higher bets, never bet with the illegal bookmakers.
But of course, there are an alternative, easier and more profitable ways to open a betting shop. For example, the franchise or the purchase of bookmaker’s offices on the White Label model. If you are looking for such options, we recommend you to consult the Bett-Market experts about the advantages and disadvantages of each method.
You can buy a ready-made turnkey sportsbook, to order the development of individual solutions for an online betting shop, buy software, different solutions for betting, payment systems, etc. Personal manager of Bett-Market will help to choose the necessary software and advertising strategy.
Contact us now to get the first income from your own gambling business in a week:
