What are the Pros & Cons of Being a Sportsbook Owner?
We’re going to discuss the pros and cons of being a sports betting affiliate vs. sportsbook owner.
There are definitely pros to both, but the benefits of owning your own bookie outweigh the pros of being an affiliate and we’re going to help illustrate why that’s the case throughout this guide.
Pros and Cons of Owning a Sportsbook vs. Being an Affiliate
There’s nothing better than owning your own sportsbook.
Here are several of the pros of operating a bookie:
● Earning Potential: You get to keep 100% of the profits when running your own bookie rather than a percentage. Your earning potential is much higher as the owner.
● Player Data: As a bookie owner, you retain your player data. As an affiliate, you don’t even receive any player data, which prevents you from being able to remarket your list.
● Risk Exposure: When you own the bookie, it’s up to you to retain players. As an affiliate, you rely on the brands you’re promoting. A lot of betting affiliate programs have closed down throughout the years, leaving affiliates without the lifetime revenue share deals.
● Regulatory Issues: The big licensed bookies around the world are facing stricter regulation guidelines and that has recently been pushed down to affiliates as well. A lot of reputable affiliate programs are actually leaving big markets, leaving affiliates with lost revenue.
Starting a PPH Sportsbook
Starting a sportsbook doesn’t need to be costly. There are pay per head (PPH) services that provide anyone the ability to operate an offshore sportsbook by paying a small fee per player.
Most PPH services start at $10/head, which is the fee you pay per player every week.
Let’s say you have 20 active bettors on your list. You’ll pay $200/week to have access to your own sportsbook website, software, real-time sharp odds, customer service, call center and more.
There are some cons to consider when determining if you want to own a sportsbook.
Here are some of those cons of being a Sportsbook Owner:
● Losing Months: While you can have months with zero earnings as an affiliate, once you are the bookie owner you can have losing months. If a couple players go on a run you can end up losing a lot of money. That’s why setting betting limits is mandatory, as a PPH bookie.
● Time: Until you’re making enough to hire help, you’ll be spending a lot of time dealing with your players and handling deposits/withdrawals. Whether you’re an affiliate or owner, you will have to spend time marketing. In all, owners spend more time on their business.
Starting out an affiliate as you learn the industry isn’t a bad thing, but there comes a point when it makes sense to transition to the sportsbook owner. You take control of your business at that point and you’ll find that you end up earning a lot more when you keep 100% of the profits.
Sign-up for a pay per head account at PayPerHead247 and start your own sportsbook today.