Pay On Time
The first financial lesson you need to learn as a bookie is paying on time.
It’s the most important thing you can do. Paying on time is what will keep you in business. It will also help you grow your betting sheet through word-of-mouth advertising.
Small bookies see rapid growth through word-of-mouth advertising and it’s free.
What do you normally do when you’re pleased with a service/product? You let your friends, family and associates know. Well, when you pay your clients on time, they’ll do the same thing.
Joe is talking to his friend Rob about how he just won $1000 this week off his bookie and was paid in full on time. Rob is going to ask for your information and you’ll have a new customer.
How to Set-Up Collections as a Bookie
Here’s how most old school bookmakers typically operate.
• Collections: Bookies collect the money from losers on Wednesday.
• Payouts: Bookies pay the winners and agents on Thursday.
Now, you can choose any days you want during the week. For instance, you could collect from losers on Friday and payout winners Saturday. The reason Wednesday/Thursday often works the best is because of football season. You collect on Wednesday and payout before Thursday Night Football.
The actual days you collect and payout are meaningless, though. What matters is that you agree on a time to settle up with your players/agents and never miss a single payment.
Essentially, as a bookie, you’re simply facilitating sports betting. You allow players to bet and then at the end of the week, you collect from the losers and payout the winners.
You get to keep what’s left after paying out the winners. Keep in mind, some weeks the winners are going to win more than the losers, which is why you need to maintain an escrow account.
We’ll discuss escrow accounts in much more detail in lesson #2 of this chapter.
Players Need to Pay on Time
Don’t assume just because a player owes you money, they’re going to pay you on time.
Collecting money can be one of the most difficult things for a bookie. That’s why we recommend to start small and only onboard new clients that you personally know or a client in good standing has referred to you. Start with small credit limits and increase them over time.
There are times when a player in good standing may need a payment extension. That’s fine, but you may also want to adjust their credit limit to avoid them getting in too much debt with you.
Some players are outright going to stiff you - it’s part of the business.
While unavoidable, you need to close these accounts immediately. If a new player misses collection day, never extend them more credit. If they pay, you can give them some more credit, but always be cautious not to extend too much credit to a player that has had problems paying in the past.
How to Collect/Pay Players
While collecting and paying is completely up to the bookie, we have some recommendations.
First off, local clients should only pay you in cash and you should payout winners in cash. You don’t want a paper trail. A disgruntled player with a maxed out credit limit may be tempted to report you to the authorities and if there’s an easy paper trail to follow, you could be in trouble.
If you’re accepting players that aren’t local (IE: Out of town friends/associates, etc.) and you’re also extending them credit, the best way to settle up is with cryptocurrencies. Bitcoin (BTC) is the most widely used crypto and a lot of sports bettors, especially in the US, are familiar with using it.