Pay Per Head News #4
By Ted Jolly – Pay Per Head Agent News
In this issue of Pay Per Head News we will cover some of the pros and cons of the wager options provided to bookies by Pay Per Head Services.
One of the great benefits for sportsbook agents who use pay per head service is that they gain access to a multitude of betting options for their players that they previously hadn’t offered or even considered. With professional grade sports betting software the agents have a sportsbook on par with any of the casinos in Las Vegas. This can be a both blessing and curse if you aren’t careful with your limits.
One betting option that is popular right now is called FUTURES BETS. The standard futures bet allows a player to bet on what team will emerge victorious as the ultimate winner of their league. Currently we have NCAA College basketball, NBA, NHL as well as opening lines for the upcoming MLB season. Each one of these leagues will determining their championship winning team in the not too distant future and players are looking to jump on board in hopes of cashing in at the end of the season.
Profitable position for sportsbook agents
For the most part futures bets will be a profitable position for sportsbook agents. Players will typically risk small amounts of money on a few different teams that they think will win it all. Most players will be putting their money on big favorites that everyone is projecting as the best chance. These bets usually don’t pay too much due to the moneyline odds and shouldn’t concern the bookie at all.
The risk from futures bets comes from the massive payouts that can go along with betting longshot teams. Although they have little chance of coming through no one wants to get hit with a $5000 payout on a $50 bet at the end of a season. The Philadelphia Eagles are the latest team to have an impact on bookies when they won the Super Bowl. Even going into the playoffs they were being written off by everyone except the die hard fans. This allowed the Philly faithful to put in small wagers with huge payout potential that end up biting into the profits of many bookies when the NFL season ended.
One simple solution to this kind of unexpected outcome is to set a payout limit for your players at the beginning of the season. Let them know that the max win on any futures bet is $X000 of money regardless of wager receipts or ticket confirmations. Make it clear that you are not a lottery shop and there is a max amount they can win on longshot bets. Remember that in the end it’s your business and you have the right to set the rules any way you want.