Becoming a Bookmaker is Getting Easier
William Hill, Paddy Power, and Coral are among the leading bookmakers globally. They started out offering few betting markets as they expanded their clientele. Today, the three firms are profitable brands that inspire many sports entrepreneurs. Starting and growing a bookie requires certain skills and a budget. The following is a detailed guide on how to become a bookmaker.
Decide Which Bookmaker You Want to Be
How to become a bookie? Which service will my bookmaker provide? Is a common question that many investors ask. Bookies that specialize in a specific service grow faster than those that provide several services at once. Even so, you can venture into different gambling sectors if you have immense experience in the industry. It is prudent to consider key factors like margins and liabilities.
The following are three popular types of bookmakers:
Online bookmaker: online bookies are easier to operate than other types of bookmakers. But, many people set them up due to their ability to reach clients from all over the world. Bookmaker shops and on-track bookies mainly rely on the number of sports enthusiasts they attract. You need to launch new services that will give you an edge over your competitors.
The proliferation of white label sites has made it easy to start an online bookmaker. They perform challenging tasks on your behalf at a fee. But, you need to provide your bookmaker’s branding to get exemplary results
On-track bookie: recent statistics show that most gamblers place bets on smartphones at home. This has reduced the number of people who use on-track bookies. Besides, such bookies cannot solely depend on horse racing tracks as their major source of income.
They need to pay for pitches and face stiff competition from other brands. You can start with cheap pitches to cut down setup costs. Still, some gambling equipment will cost you a large sum of money. A standard board sells for £15,000 and you can display your prices on it to attract punters.
Bookmaker shop: bookmaking shops are also known as high street bookies and their popularity has reduced in the recent past. Some shops have resulted in limiting players’ maximum stake on all fixed-odds gambling terminals. They have a high setup cost. The location of bookmaker shops determines the amount of business tax, rates, and rent. It is wise to get a license, phone lines, and subscribe to several sports channels.
Create a Budget
Bookmakers need a float to pay players who make accurate predictions. Financial analysts recommend having a 12 percent profit margin. The number of bets you process determines the size of your float. For instance, if you have a $200,000 float, you will run out of cash fast if you take bets worth $100,000 with odds of 2/1. Some investors dread this level of financial commitment.
Apply For a Gambling License
Many countries need all bookies to get licenses before they start operating. The United Kingdom Gambling Commission issues licenses and regulates bookmakers in the UK. The following are some popular gambling licenses you can apply for:
Premises license: visit your local council’s office to apply for the license. They determine the number of bookmakers that are established in a particular area. The process might take a long time as councils often receive many applications.
Operating license: there are different operating licenses like remote pool betting, remote general betting, remote betting host, and non-remote general betting. They have varying application fees.
Personal functional license: bookmakers and casinos need this license for their cashiers, croupiers, security personnel, and inspectors. It involved doing a background check of employees who will work in a bookmaking industry to ensure that they have clean criminal records.
Some people believe that operating a bookie is a piece of cake. It requires research, financial commitment, marketing, and patience to break even. You can hire a pay per head (PPH) agent to manage some business operations and attract return clients. Also, having a valid gambling license will make players trust your brand and refer their loved ones.