Pay per Head Bookie: A Glimpse Into the Business
Are you curious about what’s behind a pay per head bookie business? If so, this article can you give an idea of the activities related to a sports betting operation.
An individual usually chooses to follow the bookmaking agent path because he has turned his passion for betting and different sports into an actual career.
In order to run his business, a top bookmaker makes use of sports ticker and sports news services, different electronic devices, and price per head solutions.
Pay per Head Bookie Activities, Attitude
The pay per head bookie is the one that sets the odds, and also the one who has control over the funds related to the house’s wagering activity.
During a regular week, the house is going to process wagers from players (or from their respective representatives).
A pay per head bookie operation, is indeed, a service business. If the bookmaking agent is not easy to deal with, or simply doesn’t pay when players win, he will quickly lose his business to other bookmakers.
This is why a pay per head bookie must always be available and have a good overall demeanor. He must also pay on time when he has to in order to have the right to also collect cash from players when necessary.
Also, when the top bookmaker is unable to accept a wager himself because he doesn’t have enough funds to cover it, he will use a layoff, which is another top bookmaker who is running a larger sports betting operation, and who is able to accept the bet in exchange for a profit.
The return on gross action for a sports betting agent is 10% annually. So, for example, if you hear that a bookmaker can take one million dollars in action, he is most likely grossing $100,000 every year.
Bookies are careful about not taking more action than they can handle. The reason is because if they take too much losing action, they can lose their reserves and go out of business.
Meeting with Players
Usually, a pay per head bookie, or its sub-agent, meet with players once a week.
At first, the top bookmaker will meet will all of his bettors to either pay them, or collect from them.
However, as the sports betting business grows, it will be impossible for him to meet with everybody at the same time, so he will come to rely on his sub-agents to run crucial weekly tasks.
Alternatively to sub-agents, a pay per head bookie can also hire bar, restaurant, and college campus people in order pay and make collections.
We are just naming a few, but these representatives of the top bookmaker can essentially be anyone who can be in contact with current players on a regular basis.
Representatives of the pay per head bookie get a percentage of the collections. Such percentage varies from rep to rep. For example, a bar owner who only does collections and pays players doesn’t make as much as a sub-agent who brings big business of his own to the top bookmaker.
With that said, sub-agents are usually the ones that are in charge of referring new players to the pay per head bookie. However, this is also something that can be done by a regular representative of the top bookmaker, or even by a player.
Old school bookmaking agents used to receive many phone calls in a day, especially during days related to important sporting events such as the Super Bowl.
But this all changed thanks to the existence of price per head shops. These PPH establishments are located offshore, and offer data management services for the top bookmaker.
Basically, once a bookmaking agent signs up with a PPH shop, all the wagering activity will be processed either through a call center, or over the web. This means that that the pay per head bookie can delegate this business task to a third party, freeing himself of this exhausting responsibility.
A pay per head bookie prefers to keep his business as private as possible, not only because he wants it this way, but also because this brings peace of mind to his players.
For this reason, a top bookmaker chooses to work with a price per head shop as he can receive his own 800 number. Allowing his players to reach him without exposing his private number.