UNITED STATES—The job of a bookie is an interesting one and also significant to punters. Bookmakers, informally known as bookies, facilitates the betting process by setting odds, accepting and placing bets, paying out winnings. Active punters in the betting world would have heard many jokes about never meeting a broke bookie. However, the question remains: how do bookmakers make money? Here are a few ways bookies make their money.
1. Balancing the book
The name “bookmaker” comes from this activity. Bookies lay bets that are then recorded in a ledger, a process known as “making the book.” The bookie lays the outcomes of an event to guarantee they make a profit regardless of the event’s results. They do this by ensuring the books are balanced. To achieve this, the bookie sets reasonable odds for every outcome, out of which they are entitled to a share of the winnings. Where the books are imbalanced, the bookie may have to incur significant losses. Luckily, technology has influenced and advanced this sector by making various software programs to keep their books balanced and make money.
2. Charging vigorish
Vigorish, or “the vig,” are also known as over-round, juice, or margin. Since bookies cannot place bets for themselves, they try to make money by placing their customers’ bets. Therefore, “the vig” is simply a commission or transaction fee the bookie charges bettors for the work they are about to do for them. This fee is included in the odds of the bookie sets. For example, if the bookie sets the bettor’s odds without the fee and the return would be £1,000, the bookie does not make as much as they should. However, by adding an extra share to the odds, the bookie can make some money from each bettor.
3. The role of odd compilers
Also known as a trader, their role in how bookies make their money is quite significant. The part of odd compilers is to supply the bookmakers with the odds for every event outcome. This means that the odds compiler has in-depth knowledge in a particular sport and excellent mathematical and statistical skills. Odd compilers usually focus on one or two specific events to ensure accuracy in their allocated chances. Since odd compilers supply the bookmaker with odds, the latter’s earnings would depend on how high or low these odds are. One issue surrounding the odd compiler’s work is human error. Despite the betting industry’s technological advancements, odd compilers are likely to work in their human capacity. This, in turn, increases the risk of human mistakes. Again, this could be good for the bookie or cause him to make little money at the end of the day.
Many think of a bookie as an illegal middleman in the betting world; however, this is very untrue. In sports events betting such as horse racing, a bookie is a legitimate asset. It is crucial to have an honest and reputable bookie to handle your betting affairs. Hire one from BookiesReviews today!