For many, gambling on the web is a highly profitable business model. Be it online poker, casinos, sports betting or a variety of other forms, wagering on the Internet continues to surge. The expansion of this industry creates a strong profit potential for bookies who long to develop presence in the business, and price per head companies offer a great way to capitalize on the possibilities.
Online in existence for about two decades, online gambling has become a powerful industry. creating more than $15 billion in annual revenue by 2006, a figure that that would nearly double in the following four years. This surge in betting suggests a growing acceptance of the industry, something that many expect to continue well into the future.
Despite the economic pressures that have been felt in many countries worldwide, this is expected to continue being a growing market. In the next four years, projections suggest that the industry could increase by nearly 40%, pushing the annual earnings well over forty billion dollars.
In spite of this monstrous growth, the industry is likely only scratching the surface. While countries like France and Italy have largely embraced online gambling, other countries have not. The United States, which is likely the biggest market in the industry, allows almost no Internet betting. As the US and other markets decide to tap into the revenue potential, the business could literally go through the roof.
All of these legal skirmishes have left bookies in a precarious position. Forced to stay low-key in many areas, bookmakers frequently conduct their business in the shadows, keeping things running while avoiding the watchful eye of local authorities. Thanks to per head sites and the Internet, this business model is also ready to burst on the scene.
Hosted in countries that allow online gambling, per head businesses create a powerful enterprise for bookmakers. Charging affordable monthly fees that are based upon the number of players in the bookie’s organization, these companies provide professional websites and some of the most robust operating software available. This set up allows the organization to create an expert appearance online, while affordably building a site that can meet the needs of its customers. Players can make wagers, study teams and keep a close eye on their account balance. This type of arrangement means in addition to looking professional, the site can operate that way as well.
One factor that other forms of online gambling cannot replicate is familiarity. Studies have shown that gamblers are more comfortable wagering with a bookmaker than at the big Internet sports betting sites; this suggests that the personal relationship is a very important part of the business dynamic. This is one area where per head sites excel.
Handing money to someone with a familiar face is far easier than giving banking or credit card info to a website. While that concern revolves largely around identity and credit theft, the seizure of millions from poker players in the United States is also a cause for concern.
Because price per head sites do not work this way, the offer a distinct advantage. When a player needs to settle his account, he will meet up with his bookie. Funds are handled face-to-face; this means the transaction is private, and no sensitive info makes its way online. In addition, the exchange does not violate the federal laws concerning Internet gambling, meaning players can enjoy an extra level of protection.
Per head sites are helpful to the bookie as well. Because the features are so powerful and customer service is available 24-hours a day, the bookmaker doesn’t feel the pressure of hours and hours of clerical work to make things run smoothly. This means that there is more time for seeking out new members, something that can increase the profitability of the site.
The bookie software makes monitoring the action much easier for the bookie. Reports can be created that show the results of single players, groups and even the site as a whole. This helps to show the areas where the book is making money, and where it needs to improve.
Per head sites also offer another money-making feature to the bookmaker. Online poker and casino games can be added to the site. These games, while illegal at big poker rooms, can be part of a per head because the money to fund them does not get paid through credit processors. This is significant because, in the case of Americans and other with similar circumstances, no federal laws are violated when money is added to a player’s account. This can create a handsome increase as the number of players on the site, making it possible to see a surge in the profits there.
As profits show the potential to soar, the costs of running the site can actually drop. Bookies pay almost nothing to get their per head site developed; this, coupled with the customer reps and professional line movers, helps to make the business work more efficiently and affordably. There is no expense for web design, site implementation, and customer service or site improvements, all factors that diminish the bottom line at a traditional sportsbook.
Internet gambling is already a booming business, and the future prospects look especially bright as well. By building and maintaining a sportsbook online with a price per head company, the bookie can enhance the experience for his customers and run the business more efficiently, putting him in position to profit from online betting.
Michael Hill is an avid sports fan and a sports writer who has been in the betting and price per head industry for years. Michael writes about his experience and offers tips for other aspiring entrepreneurs who wish to make a living with sports bookmaking.