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How Much do Bookies Make? The Simple Intro Guide to the Sports Betting




how much do bookies make

How Much Do Bookies Make? Is one of the most common questions but if you don’t have the basic understanding of this question correctly, then understanding this industry is impossible. Let’s look into it to clear some of the tour basic concepts or form them if you are new to the world of gambling.

The fundamental Question – What is a Bookie?

You need to be aware of the answer to this fundamental question to be able to properly grasp the business model. In easy words, I would characterize them as individuals accepting and paying out gambler bets. For simplicity, I will presume that a bookie and the owner are separate from each other because there are business models that are complex and we can’t separate the bookie from the business owner. Many sports betting sites or overall betting sites have various bookies working under the umbrella of the owner, there are business models where the owner is called the bookie and they differ but for general knowledge just be aware that in most cases the bookies are different from the owners and they are involved in the business as the ones who accept the bets and pay the gamblers, and they can be more than one.

How do the bookies accept the bets?

For bookies to accept bets the most important thing is that they have a trusted platform behind them, that attract gamblers who bet, and then the second thing is having the odds, for example, if you are betting on a sports match and it is between the famous Real Madrid and a small team, let’s assume Elche, then, of course, the odds will be in favor of the bigger team and the odds are then tailored for this, the bookie must have these for him or her to be able to accept the bets. Most bookmakers use services from famous internet service providers that create software and provide the bookmaker with sharp betting odds and customer management systems to allow gamblers to place bets online and for the bookies to track them. These odds are used by the bookmakers to construct their websites and the better the management of this system, the higher the answer to the question, how much do bookies make?

How Much Do Bookies Make?

The odds on a famous betting site

How the Bookies Make Money?

The question’s answer is related to the initial question, how Much Do bookies make? The way they make money determines how much they can make, thus these two questions are interlinked.

Supposing a player bets $550 on a match in which both sides have exactly the same probability to win. These wagers are called pick-ems and the odds on sportsbooks are -550 (that is to say you risk $550 to win $540). This shows that the bookie receives a 10 percent rake, even in an even game. The typical player statistically wins this bet 50% of the time.

How Much Dough do the Bookies Make?

As seen in the above example that 10 percent of the rake goes into the favor of the bookie but does all of it goes to his pocket? The answer to this is a yes or a no, a yes if the bookie and the owner are the same but no if both of them are different.

Let’s assume there are three parties involved:

  1. Gambler
  2. Bookie
  3. Owner

The bookies are given a commission at the end of each week pm their total book losses. These commissions are typically between 10 and 20% when interviewing a number of books.  So, if you have 25 players on your book, every one wagered an average of $200 a week, the book will fall down by $20 per player on average (total $500). In just one week, this gives the bookie $100 ($500*.2) and the book $200. Of course, marginal expenditures might be incurred like client purchase or a pay-per-head book owner service, but raking $500 each week is over $20,000 a year.

Learn more about making money from the gambling industry