Today we look at
How do Bookies Make Money?
Today we look at how do bookies make money, and in short the primary way bookies make their money is through a commission. They get a percentage of a winning bet which is called a bookie’s fee, the juice, or the vig. Ideally, that would be the end of it, and this blog would be very short.
But there’s more to it than that. There is a risk involved that makes a bookie’s business a little more complicated. They have to keep their book balanced, meaning they need an equal amount of money on both sides of a bet.
Here’s a simplified example. If Mr. Green bet $100 on the Cleveland Browns to win against the San Francisco 49ers, the bookie would need Mr. Pink to bet $100 for San Fran to win to keep his book balanced. If Cleveland wins, the bookie gets to keep Mr. Pink’s $100 but has to take $90 of it and give it to Mr. Green for winning his bet. The bookie keeps $10 as his juice.
In the example above, the bookie’s primary focus is to get as many people betting on the game as possible and keep both sides of the bet as equal as possible. The more bets laid down, the more money you make. The juice can vary, but most bookies charge 10%.
This is a very simplified example. As you get into more complicated bets, it becomes increasingly challenging to balance your book. But with practice and experience, you can get very good at it.
There are tools available that a bookie can use to keep both sides of his bets as equal as possible.
Varying risks are associated with the different types of bets that can be made in sports. It’s best to gain an understanding and experience with all kinds. But there are lower-risk places you can make money as a bookie.
Tools to Reduce Risk
Other Ways to Reduce Risk