Gambling is only getting more and more popular. Last year, analysts estimated the value of the global market at over $400 billion.
The people that accept bets from sports punters are called bookmakers, or “bookies” for short. These professionals make their money by assessing the probabilities of certain outcomes and setting their odds to reflect these probabilities. If they get their calculations right, they should make a reasonable profit margin over the long term. Make Money by Betting on Horses
So, how much do bookies make? The answer to this question varies on the basis of the size of the bookmaking operation, the volume of betting activity, and the skill of the bookie in setting odds and responding to activity on the market.
To dive a little deeper into all these factors and learn more about how a bookie makes money, keep reading.
How Much Do Bookies Make?
As noted above, a lot of factors affect the answer to this question. The first is the size of your operation; obviously, if you’re taking in $100,000 per week in bets, you’re probably going to make a lot more profit than a bookie who’s only taking in $5,000.
Of course, the opposite is also possible. Bookmaking is essentially large-scale gambling; if too many results go against you, you’ll make a loss. The bigger your exposure is, the more financial trouble you’ll be in if things don’t go your way.
Large bookmaking corporations make hundreds of millions of dollars a year. However, even a small independent bookie can make hundreds of thousands, if they adopt the right approach.
How Do Bookies Make Their Money?
So, how do bookies make money? It’s all about setting the right odds. You need to assess the probability of a certain outcome, then calculate sets of odds that incorporate a profit margin for you over the long term.
However, you can’t just set odds once and walk away. As you take bets on events, you need to adjust your odds to limit exposure; the more bets you take on a certain outcome, the shorter you should make the odds on that outcome.
How to Make More as a Bookie
There are a few different things you can do to improve the profitability of your bookmaking business. Cover the events people are watching most, and make sure to refine your approach to setting odds. Don’t be afraid to reach out to more established industry players for advice.
Taking Your Bookmaking Business to the Next Level in 2021
So, how much do bookies make? As you can now see, this isn’t an easy question to give an answer to. It depends on many different factors.
If you’re a regular gambler reading this article, you should have a greater appreciation of the difficulties your bookie can face in keeping their operation going. If you’re a bookie, you should have picked up some actionable tips on how to widen your profit margin and keep the money flowing in.