Sports Bookmaker: A Step-by-Step Guide
Sports betting. It can be an exhilarating rush, with the thrill of victory and the agony of defeat, just like on the field.
If you are reading this, you have probably bet on a game or two before. You know what it is like to win, and what it is like to lose.
But, maybe you have done well in the past and feel like you can do this for a living. You have the sports knowledge, why not try running a sportsbook?
Well, that is one step to being a sports bookmaker, but there are a few more you probably do not think about making bets on the other side.
The truth is, the sports betting market is valued at around $85 billion and that number is only expected to go up. How do you get in on that? How do you get your piece of that pie?
These are the steps you need to take to be a successful sports bookmaker.
Secure Your Funds
One of the most important things to getting your sportsbook started is to secure your funds. In general business, the average recommendation is to have 3-6 months of funds secured before you get started.
You need time for your business to grow and to establish an identity with the general public. Also, you need to allow yourself time to get through the trials and errors of running a business.
Having the right funds allows you to do all of this. Say you have an unexpected security threat that you need to throw some money at to take care of? If you are relying on day-to-day funds to operate your business, an unexpected problem can stop your business operations very quickly.
Whether you need to get an investment partner, a loan, or work a side job to secure the extra cash, make sure you have it before pursuing this endeavor. You do not want to go into this 50%, you want to do this right the first time to put you on the fast track for success.
Do Your Homework
Make sure you know the ins and outs of your business before you lock into a long-term situation that you are not prepared to handle. This not only goes for securing funds but every aspect of your business.
For example, you may not know that you can have a third-party service support the technical operations of your business. So, instead of spending hours researching and trying to teach yourself about the software and hardware required for a sportsbook, you can hand it off to someone else for a price.
The goal is to work smarter and not harder when it comes to starting a business. To be a top sport bookmaker, you will need to do your research to gain every little edge and to get a better idea of where you need to be focusing your time.
What this means is you want your bettors to have a friendly experience with your sportsbook. You do not want bettors ripping their hair out about trying to get a specific line in right before kickoff, or trying and failing to place a bet as soon as halftime hits.
The right hardware and software will virtually guarantee that this does not happen to you. The software will keep your bettors being able to pick up a last-minute line to add to their bets, not overwhelm the system when everybody is trying to bet on a game at the last minute, and change lines fast enough for you to come out ahead.
The last thing you want is for everyone to jump on an error line. Say the Chiefs are a -9.5 favorite rather than -10 in the middle of the game and it does not update in time. Well, then everyone can jump on the -9.5 and if the Chiefs win by 10, that is a lot of lost income for you.
In terms of hardware, the approachability factor is security. You want your bettors to feel safe and secure placing bets with you. And, this is not always the easiest of tasks given the number of data breaches that occur at any given time.
Bettors come to your sportsbook to try and win money, not to lose a lot of money in the long run because somebody saw information on you that you did not want them to see. So, you need the right hardware to gain a reliable reputation among your customer base.
If you do not do this, you could not only be out of business but potentially face major legal issues.
Know the Odds
Like any logical sharp bettor, it is important to know the odds. But, this applies even moreso to the sportsbook side of the business.
For online sports bookmakers, this can happen at a rapid pace. With the right software, the odds of a game can change in an instant.
You need to be aware of this and have a good idea of where the lines are supposed to be. You also need to know what can make you money and what does not.
For example, on a general game that has a close-to-even matchup, you are usually given -110 odds. That means that a bettor has to bet $110 to win $100. This is good for YOU because that means you are getting a piece of the action no matter what happens.
But, on top of that, you need to make sure the line is even enough where you get close to 50% action on both sides. If there is about 50% of people betting on each team, that is GREAT for you.
Then, you will be able to make a profit on the “vig” you charge everyone to make a bet and no matter who covers the spread, YOU win.
Finally, it is an advantage to know what types of bets benefit you the most. For bookies, this is usually parlays.
Parlays have an appeal to true gamblers because it has the promise of turning $10 into $1,000. But, the odds on that hitting is usually about 60/1, so it is highly unlikely that you would actually have to pay a bettor out.
Sure, you may have to pay one lucky son of a gun every once in a while. But, in the end, more of those bettors will pay you.
This is all about finding your role in the market. What are your bettors looking for? What is a need they have that is not being filled?
It is up to you to figure that out. There is no doubt that there is more competition in the sportsbook market than ever before, so that means that you need to stand out.
Figure out how to market yourself and your book, engage with your bettors and keep them wanting to come back. If you do not do this, you run the risk of two things.
The first is them not even knowing that you exist. The worst thing for a company is sometimes not negative publicity, but no publicity. It is worse to not be known at all than to be polarizing most of the time.
The second thing is bettors passing on you for a better company because of a weak marketing campaign. So, make sure you do some digging, make yourself known, and find out what your audience is craving.
Know the Rules
To do this legally and legitimately, you need to be aware of what rules might hold you back. Different countries have different gambling laws. In the United States alone, different states have different betting laws.
For instance, only 20 states even have sports betting as a legal entity. Some only allow you to bet online, others only in person. What you can do may really depend on where you are.
Before you commit a sizeable time and investment into a sportsbook, make sure you know the rules you have to follow, and what licenses you might need to operate legitimately.
The last thing you want is to have a knock come from Uncle Sam saying that you did not do the government’s rules right. It is a lesson that you do NOT want to learn the hard way, so study the laws, and work around those laws.
Become a Sports Bookmaker Today
So, now that you have some tips on how to get started, you are one step closer to becoming a sports bookmaker. Next, you have to pull the trigger.
You can do that by starting here and creating a sportsbook website with us.
We will provide you a team that will handle all of your hardware and software concerns, provide you with a call center, and even give you a six-week free trial to get comfortable. So, sign up today!