So, you’re interested in becoming a bookmaker? It takes a certain amount of skill, dedication and investment to get where you want to be, but if done right, it could take you to big places.

Flutter Entertainment, MGM Resorts and DraftKings are some of the biggest names in the bookmaking industry that started small and are now considered powerhouses.

Whether you’re already familiar with the industry or are brand new to it, let’s walk you through it and help you figure out if this is the right path for you. You can click here to learn if you have what it takes to be a bookie. Keep reading to learn more about this booming industry and how you can capitalize on the thriving market.

What Does Bookmaking Entail?

Bookmakers, or bookies, are individuals (or an organization) who facilitate any type of gambling, most commonly sports betting. As a bookie, you would be responsible for setting odds, accepting and sometimes placing bets. Bookmakers pay out these winnings to customers/users. They maintain a level of balance in the bets, ensuring that there’s an equal amount of people betting on a win or loss.

What kind of bets can people place? There’s a long list of bets you could propose to customers depending on the sport; some examples include:

• A player scoring X amount of goals
• Which team will score first
• A specific player that may get a yellow card
• How many tackles a player makes
• At what minute in a match that a goal will be scored
• The first set score
• A player passing for X amount of touchdowns

The more unlikely an event is to occur, the higher the chance of winning a more significant sum of money and vice versa.

The Growth of the Betting Industry 

According to Statista, the online sports betting industry is predicted to grow by 17.33% annually, resulting in an estimated market of $14.44 billion by 2027. The current revenue sits at $4.33 billion, with an estimated 46% of Americans placing at least one sports bet a year. Every week, 31% of Americans place bets on sports.

Although football remains the most popular spectator sport in the US, basketball is one of the most popular sports that Americans place wagers on, with a total of 53% of Americans betting on this particular sport.

The Online Betting World

Online betting, also referred to as gambling, is any form of wagering conducted over the internet. The most common types of betting include poker, casino games and sports betting.

In the US, sports betting is legal –  but only at the federal level. It’s up to each state to decide what regulations they choose to put in place. Understanding what’s legal in your state is essential to ensure a safe and enjoyable experience.

At the time of writing, US sports betting is legal in 29 states + D.C., compared to 21 states where it is illegal.

Bookmaker Store

Depending on the laws in your state, you can set up an in-person betting store.

Much like online bookmaking/betting, there are certain state laws and regulations to be aware of. Retail US sports betting is legal in 36 states + D.C. compared to just 14 states where it is illegal.

Step-by-Step Process

1. Make a Plan

How much money are you willing to invest? Do you want it to be online/mobile, or are you considering setting up a retail store? What’s the scale of your business? Do you need a team?

There are loads of questions you should be thinking about to get you to a point where you’re ready to begin setting up.

2. Choose a sports betting software or find a retail location

Pay Per Head is one of the best options for building your software for an online bookmaking business. Choose your preferred sport and sign up today.

If you’re thinking of an in-person betting store, make sure it’s legal in your state and start looking for property. This, of course, takes a little more investment and is considerably more complicated – but can certainly be worth it.

3. Obtain a gambling license (may differ for online vs. retail)

Getting a license is important, or you may risk fines and legal ramifications. Talk to your PPH provider if you’re unsure. The same goes for retail – you’ll need a license. It’s worth looking into your state laws to see what license type you’ll need.

4. Developing your business

Once you’re set up and have your license – it’s time for the fun stuff to begin. Set up all the nitty gritty details, such as gathering resources, making the initial financial investments, etc. Even the little things like branding are essential to prepare at this stage.

5. Launch/Open

And then you’re ready to open. This may be the last step, but it doesn’t end here. The bookmaking business takes a lot of continued dedication, marketing and so on.

Making Money

Bookies make their money by charging a small fee on all bets, whether online or in retail. The fee is generally around 10% of the amount that a customer has bet. They pay out this money to themselves whenever customers win a bet.

For it to be a viable business, it’s important to ensure that outgoings are larger than your ingoings.

Benefits and Risks

Like any business, there will always be risks – particularly when gambling is the source of income.

Here are some of the main risks:

• An understanding of sports trends
• An understanding of referees, umpires, etc.
• Calculating event outcomes

There are several risk management strategies to look into, such as software, researching betting trends and keeping your books balanced.

Some benefits of being a bookmaker are:

• Working for yourself
• A livable income
• Deciding your own hours

There are plenty of reasons you should consider being a bookie, but it isn’t a path for the faint-hearted or those who lack organizational skills. You are in control of real money with real people pinning their hopes on a win. You need to understand and feel the weight of that responsibility and treat it appropriately.

Conclusion

With all that being said –  is the bookmaker life for you? It’s up to you whether you take the online or retail route, but as long as you understand the risks and are willing to invest time and money, there is undoubtedly money to be made in this industry.