Sportsbook Business Model
If you are looking to be a bookie and have your own sportsbook then the first thing you will need to do is get with a pay per head service that will provide you with a fully inclusive website with betting options on all the sports in the world.
Then once you find the right pay per head bookie service (AcePerHead.com) you will need to decide which type of sportsbook business model you want to use, which will be either to offer your players a credit limit to play with or make them post up the money first in order to wager with you. There are positive and negatives about each method, and at the end of the day the choice will just depend on your specific preference and which way you feel most comfortable with.
The credit option
This option is particularly good to offer to players that you know personally and that you trust can afford to pay when they lose. It is important though to always start with a credit limit that is fair and not something that the player would not be able to pay if they lost their entire credit limit in a week. So for example, if one of your good friends that you have known for many years wants an account and is someone that makes over 100k per year from their job, then you can start by giving the player a credit limit of around 2k for the week. However, if you have a friend that is in college and makes a few thousand dollars a year then you should give this person a much smaller credit limit of $500 or less per week.
The key to this is that you need to make sure people can afford to pay what they lose, because if they can’t pay you when they lose then that defeats the purpose of taking action and means you will not make any money. Instead you need to give credit limits that fit each person and also base it on how much you trust the person. If you don’t trust the person to pay you when they lose then it’s not a good idea to give them that much of a credit limit or even better just make them post up the money first.
The other option is to have your players post up the money first.
Now that will at least make sure that you will never get stiffed when someone loses because they have to put up the money first with you, which is a good thing. However, this also will generally mean that players will lose a lot less money because people bet with a lot more control when its real money they already gave up front compared to when people are playing on credit and it’s not really their money until it’s time to pay what they lost. Similar to people spending more money when using a credit card then actually paying for things with cash. So having guys post up money is nice because you get the money first, but it will mean that over the long run you will not earn as much compared to if the people were on credit.