So, You Want to Be a Bookie? Here’s 5 Things You Should Consider First

Being a bookie as a side hustle, or even as your main source of income, sounds pretty cool. As a sports bettor, you’re probably aware that the house always wins in the end. So, why not start getting on the other side of the action?

The reality is that making your own sportsbook involves a lot more work, and especially risk, than you’re probably expecting. In this article, I’ll explain five things you need to consider before you try your hand at taking other people’s bets and becoming a bookie.

1 – It’s Risky

If you want the reward, you’re going to have to take the risk. While this isn’t news in the general sense, it’s important to recognize that you are in fact taking on some financial risk when opening a bookmaking operation.

The philosophy behind acting as the sportsbook is simple: the losers pay out the winners, and the house collects the vig. In a perfect world, there would be 50% of the public’s money on each side of a bet, thus, there’s no risk of losing money as a bookie.

Over time, it’s true that most bookmakers are able to turn a profit. But there are undoubtedly days, weeks, and occasionally even months at a time where the equation doesn’t work out. When this happens, it’s necessary to make sure you have enough capital to keep up with paying winning bettors or else you’ll risk closing down your operation… or worse.

If you find yourself in a situation where all the money is on one side, it’s probably in your best interest to stop taking plays if it’s going to put you even more at risk. However, if you do this, you may alienate certain bettors who will not give you another try. From your perspective, it’s better to be safe than owe winning bettors a significant amount of money.

The main takeaway from this point should be that you aren’t going to win every single time. Be sure you’re financially equipped to deal with “taking a bath” on some games. You also need to be aware of the legal issues with running a book where you live.

2 – You Need Word of Mouth to Grow

If you’re happy with just acting as a bookie for your friends, this might not apply. However, if you are in fact only looking to handle a small group of bettors, get ready for some wildly volatile income.

Most bookmakers would acknowledge that the more people you have utilizing your services, the more predictable your bottom line will be. Of course, it takes more money in the bank to support a larger operation, but as they say, “It takes money to make money.”

When you’re just starting out, it’s crucial to grow your book of business by enlisting the services of your current players in order to get new ones to come on board. One example that the big guys use is “free play” or special “bonuses” when you sign up, but you may or may not be able to finance these perks.

The typical course of a bookie would be to start out small with well-known associates, then grow and take bets from complete strangers. When you reach phase two, be professional, courteous, and timely with your payments. Remember, you need them more than they need you, especially with the near-endless betting platform options that exist in today’s gambling marketplace.

3 – You Might Need to Add a Partner

It’s challenging to manage a high volume of bets by yourself, and it only gets worse with every new client. Of course, you don’t want to turn business away, so you’ll need to find a way to deal with the extra work. The solution? Consider bringing someone else on board, preferably another bookie who has some experience in the business.

First and foremost, make sure this person is someone that you trust both as a financial partner and as a representative of your “business.” If you choose someone who isn’t going to be competent at managing the workload and frequently takes shortcuts while focusing on maximizing their personal profit, you’re setting yourself up for failure.

How do you find someone who fits all the criteria necessary to run a successful sportsbook? In my opinion, the best way is to find someone who can verify that they have experience doing that kind of work.

Even if you have bigger players jumping at the opportunity, place trust above all because in an unregulated business (which your bookie operation would almost certainly be), there isn’t going to be much legal resource if things go sideways. If you don’t think you can handle taking on a partner or don’t want to split your revenues, it might be best to keep your operation small.

4 – Find a Software System That Works

The good news is that as the demand for sports betting has increased, many new companies have emerged that make taking bets, and managing the money, easier than ever before. It’s romantic to think of the days when deals were placed in backrooms with a calculator and legal pad, but alas, the future has arrived.

Once you’re able to settle on a software system that automatically brings in the odds, provides a range of different betting options, and does the heavy-lifting in terms of money management, you’re going to be able to focus on growing your business. Not to mention, it’s much easier to be aware of the cash flow when you don’t have to manually add it up on a regular basis.

Do your research and read through what each system offers before settling on your final choice. All of them offer something, but few offer everything. Also, make sure you find one that allows you room to grow without having to pay a significantly higher fee for their services.

5 – Never Stop Learning the Ins and Outs of the Industry

Few industries have seen more growth and evolution over the past five years than sports betting. After PASPA was repealed just three years ago in 2018, there was a massive sea change in the standard operating procedure for both legal and legal-ish betting operations throughout the country.

One example of the evolution of sports betting can be seen with daily fantasy sports. Two major players, FanDuel and DraftKings have managed to dominate the space, but that doesn’t mean it’s exclusive to those companies. They’ve just put together the infrastructure to support it.

Find a reputable reporter (if there are any left, that is…) who specializes in the sports gambling industry. This may help you get the competitive advantage over other similarly-sized sportsbooks and you’ll be rewarded for your efforts.

Conclusion

Running your own sportsbook isn’t something that you should decide to do overnight. It requires a high-risk tolerance, plenty of capital to pay off winners when things don’t go your way, and of course, being extremely attentive to detail is a must.

With that being said, someone has to do it, why not you?! As long as you take the proper steps in order to ensure there won’t be any problems between you and your clients, it’s not unreasonable to think you can pull it off. Just make sure the money there’s always money in order to avoid a bad situation.