As a pay per head bookie, many people will advise you not you give credit to anyone, and even though that is totally up to you, to have the credit option available for your players is certainly necessary.
Pay per Head Bookie: Offering Credit
If you are a bookmaking agent that is not planning to give credit, then you won´t have to be chasing after anyone for payments related to lost sports bets.
If this is the business model that you want to use, then your players will always be forced to pay you in advance for their wagers.
This means that when a player gives you, for example, $50, you deposit that cash into his account so the person can wager freely.
This is all good, but what happens when the pay per head bookie gets to develop a good relationship with his clients?
This scenario opens the possibility to extend credit because the sports betting agent is familiar with this type of trusted customers, and knows that he won’t have a problem when it comes to collecting funds.
As you can see, you can make credit a part of your pay per head bookie business strategy, but selectively.
This allows certain chosen clients to place bets on credit when they are out of town, or simply unable to fund the account for a different reason.
It may be the case that a person that wants to place some wagers with you doesn’t have $5000 dollars right now, but she might have it in 2 weeks, so if you trust this individual, you can opt for extending some credit until the person gets the cash.
Actually, credit can encourage good players to keep placing bets with you, so once you have offered credit to a given customer and such person has responded to you positively when it comes to paying back, then you can keep the credit line open for such particular individual.
It is also a good idea to understand that credit doesn’t really mean that you have to set a $1000 weekly limit for a player (which is fine if trust is involved), as it can also mean something like “I’ll pay you tomorrow.”
Start with NO CREDIT
Now, it is important to understand that credit will become an option for your pay per head bookie business later on the road.
When you start, you really cannot afford to start offering credit because you are not familiar with players, and also because you are in a period where your main purpose is to grow your capital, and certainly to start offering credit can slow you down.
Just think about this: are you willing to lose a great player over one or a couple wagers on credit? Chances are the answer is No.