How Much Money Do You Need to Start As a Bookie?
Starting an online bookie doesn’t need to be expensive.
We’re going to teach you exactly what you need to budget for as a new bookie. While you don’t need a huge investment to launch a sportsbook, you need to have some liquid cash available.
How Much Liquid Cash Do I Need (Bankroll)
As a bookie, your bankroll should only be used to payout players.
When you start out as a bookie, you need a minimum of 20% of the credit you’re issuing.
Let’s take a look at an example:
If you have twenty players with a $300 weekly credit limit ($6000 in credit issued), you need to have a minimum of $1200 in liquid cash, which is to be used strictly to payout potential winners.
Could you maintain a higher emergency bankroll? Absolutely. As you grow and earn money, it would be a good idea to increase your bankroll to closer to 50% of the credit you issue if possible.
Some players will win some weeks, while other players will lose.
However, you may need to pay Player #4 on Monday and collect from Player #6 on Thursday. This is why it’s important to have liquid cash so that you can quickly payout your winners on time.
Why Paying Players Quickly Is Imperative
Paying your players fast is your best form of advertising, as it’s free.
Word travels fast in the sports betting world and if you build a reputation for paying winners quickly without any problems, you’re going to have lots of guys wanting to bet with you.
The other thing to consider is that if you slow pay, your players will as well. Or worse, your players may not even pay you or they’ll switch bookies because you’re not paying them fast enough.
No sports bettor wants to hear how you can’t pay them out right away or you need a payment plan to pay them. This is why you need a liquid cash bankroll reserved for paying out winners.
What Are the Other Costs to Consider As a Bookie?
There are some other costs as a bookie, but none will break the bank early on.
Firstly, you need a pay per head (PPH) service to partner with. You can expect to pay $10/head each week for an active player (made at least one wager). Therefore, if you have ten players to start out, you need to budget $100/week to pay the per head fee.
You should budget for this as a new bookie because some weeks you might not make money.
Some other things to consider when launching are a new smartphone (you don’t want to use your personal phone number) and a computer/laptop to handle the day-to-day operations.
As your business grows, you will need to start budgeting for maintaining your business and at some point, you’re going to want to hire an assistant to handle the mundane tasks.
Another expense as you grow is for marketing/advertising. Eventually, you’re going to run out of friends and family to join your sportsbook and you’ll need to start branching out.
However, these additional expenses aren’t necessary early on as a new bookie.
The main thing you need to worry about early on is the liquid bankroll (20% of the credit issued).
The majority of pay per head services offer 2-4 week free trials, so you’re not even going to have to worry about paying a per head fee until after the first several weeks of operating.
The only money you need in the beginning is to payout any players that may win.