How Much Money Do I Prepare For Starting A Bookmaking Business?
If you are interested in having a bookmaking business, you must be very curious about how much money you may have to prepare before starting out this business journey. To be honest, a huge amount of money is not required but it might be easier if you can have a certain funds with you since you might need to pay your players when they win the bets.
So, what is the approximate amount?
Let’s put some examples in math and you may know better how much money you’ll need. If you have 10~20 players who want to bet with you and you set the maximum wager limit on each of them as $1000 per game, you would need to prepare at least $10000 as a start-up funds. Why? Because some of your players may simply get lucky within the first couple of weeks and win the bets and you’ll still need to pay them. Besides, players who bet between $500~1000 a game can easily win thousands of dollars a week. To be more specific, for a player who normally bets $1000 a game to win $3000, he just needs to win 3 games during that particular week.
Therefore, it’s very important to properly set up the betting limits if you don’t have that much of funds to risk while starting out the business. You just simply inform your players the limits will be $250 or less for now and then raise the limits little by little once you successfully build trust and comfort with your players.
In the case that you only have less than 10 players to start your bookmaking business, and you plan to set up the limits as $300 or lower per game. Then your funds could be very minimal. For example: If there is only a couple of players betting with you and they’re betting small as you limited, then a smaller funds like $500~1000 will be probably more than enough to get started.
As the long-term results, players are going to lose eventually when they gamble on sports. They might not immediately start losing the money during the first weeks betting with you, but you will soon reach the point that you don’t need to prepare extra money on the side and just simply collect the losses from your players and use part of them to pay the winning ones.
Undoubtedly, more money you could have set aside for paying your winning players, the better prepared you will be, and the bigger swings you’ll be ready to deal with. You have to be prepared that players are going to win sometimes and they need to win sometimes for not losing their interest on gambling. (You may not expect that they rapidly run out of the money and not able to continue betting more and even lose a long-term contributor for you right?)
However, do not feel discouraged if you don’t have big funds to start out the business at the beginning. Instead, this means you should cautiously set up with a lot smaller limits on your players and also build up your online business slowly.
Another useful suggestion for new bookies is to make the good use of Pay Per Head software solution like Price Per Head provided. There is a feature that you can set up max payout amount for all kinds of wagers. Which allows the bookmakers to control the max payout of every wagers that their players place and helps to protect themselves against players winning more than they can afford to pay.