So, you’re a bookie, but you’re now trying to fine-tune your business and cut some losses?
That’s something all new bookies end up going through at some point. When initially launching an online sportsbook, it’s easy to get carried away and spend more money than you were planning.
There’s marketing expenses (local/online), potential losses because a player stiffs you, transaction fees (deposits/withdrawals) and numerous other expenses apart from the cost of a PPH service.
How to Cut Losses as a Bookie
You should know that the pay per head can cut losses. The top pay per head (PPH) sites have tools that’ll allow bookies to cut losses, which in turn will result in increased profits.
Study the Reports: The first thing you need to do is study your financial reports. PPH sites have dozens of real-time reports, allowing bookies to dig deep into where they’re losing.
The first step in cutting losses once you’ve established your business and player base is to look at your reports. Dig into the data to find out exactly where you’re winning and losing money.
You may study the reports and notice that a few guys have been crushing you on NFL teasers.
Let’s say you’re losing on teasers every week. You have multiple options. You could determine that you don’t want to offer teasers anymore, but that could cost you business.
Alternatively, you can add lower limits to teaser bets or limit the number of teaser options, such as how many points a bettor can buy and how many games can be added to a teaser bet.
At the end of the day, if you’re consistently losing, you need to cut your losses.
Restrict/Limit Players: You work everyday to find new players and grow your betting sheet, so why would you ever want to restrict or limit a player? We’ll explain why below.
Sometimes you have to cut your losses and simply ban a bettor because they’re sharp. A “sharp” is a bettor that wins consistently and often ends up with a better price than the closing line.
Certain guys are great at betting sports and win too often for it to be profitable to book their action. Even the biggest bookies in the world restrict or limit players on a daily basis.
Work/Spend Efficiently: You need to track where every dollar is betting spent. How much are you spending in marketing? How much are you spending in transaction fees?
The best way to cut your losses as a bookie is to focus on where you can save money.
All marketing campaigns need to be tracked vigorously because if the campaign isn’t profitable, you need to ditch it. Marketers start/end campaigns everyday.
A campaign that worked last month might not work this month either, so always track everything.
You should also analyze your bookie service costs. Are you leasing software, odds feeds and hiring help? Save money by joining a pay per head service and streamline your entire operation.