The betting services industry is one of the largest in the world in terms of turnover of funds. The profitability of the business of bookmakers, according to their own statements, reaches 8-10%, although the reality is likely to differ significantly in a big way.
Starting this business, you need to understand what level of profitability you are counting on. Unlike trade, catering and other business sectors, the bookmaker’s profitability is relatively small – up to 10%. The principle of the bookmaker is simple. Every day the office offers a list of quotes for sporting events, which is called “line”. Each of the outcomes of a sporting event has its own unique coefficient, which is necessary to calculate the amount of the winnings.
Of course, this business has seasonality, which is closely related to the world sports championships. Most bets are traditionally placed on football matches.
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Let’s check the work of the bookmaker from the inside on the basis of an example. Every day, the bookmaker creates his lines, for which he finds out the ratio of forces for a particular match to determine the probability of the outcome of this match. Of course, different companies may have their own vision of the outcome. And that means their rates.
For example, in the match Eagles – Hares, the bookmaker believes that the odds are in percentage terms equal to 50% -30% -20%. That is 50% that the Eagles will win, 30% that there will be a draw and 20% that the Hares will win.
According to the European system of representing chances, the line for this event will be formed as 2 – 3.33 – 5. This is done by simply dividing the unit by the percentage of team chances.
But then the bookmaker will not receive anything if he allows the player to play along such lines. Therefore, it introduces a margin. For example, we will have a margin of 15%. That is, the player will have to be 10% smarter (minimum) than the bookmaker to win. The alignment of forces with profit margin in percentage terms will be such as 57.5% – 34.5% – 23% = 115%. Or in the European format – like this: 1.74 – 2.90 – 4.35.
Let’s say people put in the following way: $ 6000 – $ 3000 – $ 1000. What will the bookmaker answer? What risks does it bear? If the Eagles win, the bookmaker will have to pay players $ 6,000 * 0.74 = $ 4,440 and he will get $ 3,000 + $ 1,000 = $ 4,000 from players and the total loss will be $ -440.
If there is a draw, then the bookmaker will have to fork out at $ 1.90 * $ 3,000 = $ 5,700, and he will get $ 6,000 + $ 1,000 from the players and the total loss will be $ -1300. If the Hares win, the bookmaker will pay $ 1000 * 3.35 = $ 3350, and will receive $ 9000 from the players. Thus, the profit he receives will be $ 5650.
So is there a way to make money on it? Definitely yes. But it is important to understand that without proper preparation there is no reason in starting such a complicated business. It is also important to remember that in order to open an online betting company, you need to find reliable betting software. There is a huge amount of sports betting software companies that do not always offer a high quality product. The success of your business will depend on the right choice of betting software. Remember, you have to choose a company which will be your partner for a long time.
To earn in this type of business, as in any other business, you must to invest in a good start. Strong competition in this sphere leaves only some little chance for a good income. Be responsible in choosing online betting software and you will have the chance to build a serious business with a good income.