Types of BCs
- Offline. These are classic betting shops with real betting shops. With the advent of the Internet, this format has not disappeared completely. Some players still find it more convenient to visit betting shops, make bets and communicate with like-minded people.
- Online. These betting companies conduct their activities on the Internet. Players can make bets on the website or in a mobile app. Such services are popular because they allow them to play without being bound to their location. It is possible to view forecasts on sporting events from professionals and place a bet immediately. And also online usually has more bonuses, a choice of payment systems, and offers not only for sports. Large bookmakers have both an office, and a website for betting.
How a betting company works
In order for a bookmaker’s office to survive, it needs to set the odds correctly, so as not to be left without money. To do this, there are entire analytical departments that prepare a line for each event. Let’s try to understand how to calculate the odds in the office, using a soccer match as an example. For clarity, let’s take a variant where there is a favorite and an outsider.
First the bookmaker analysts evaluate the condition of both teams, then they calculate the odds of winning. For example, we have a favorite with a winning probability of 50% and an outsider with 40%. Then the bookmaker needs to leave 10% for a draw. Now we need to convert the probabilities into odds. How to do it in detail here.
Let’s calculate the odds for the victory of the stronger team: 1 / 50 * 100 = 2,0. Then on a draw the odds are: 1 / 10 * 100 = 10,0, and on the win of the outsider: 1 / 40 * 100 = 2,5. But this is not enough for bookmakers, because while the profit is not guaranteed. To change this, a margin is used.
That is, in each odds bookmakers laid percentage, which will not remain without their benefits at any outcome of the match. Suppose that in our match the office in the odds laid margin of 10%. Then we will see the following quotations in the line: for the victory of a strong team 1,8, for an outsider 2,3, and for a draw only 9,3.
On what bets do the BKs earn?
BKs make a profit on all losing bets and, by charging interest, make a profit even if a player wins. But that’s not all: it is not only important for a betting company to correctly calculate the probability of a team winning. It is also necessary to deal with the possible behavior of users. Bookmakers always have more information about the event than the average player. Therefore, they can manage the flow of bets with the help of correctly set odds.
For example, at first glance, the favorite is team 1. But the betting company is sure that the outsider has a better chance. Then low odds are given on the winning of the first team to provoke a shaft of betting on the favorite. Thus, the bookmaker company will make money by misleading the players with the wrong odds. And from the rare lucky ones who guessed the outcome, the office will get the margin.
How much money does the betting company get?
It is easy to find information on the web about how much a large BC earns in a month. The score always goes into the millions a day, much depends on the margin and company policy. Of course, it is difficult for start-up bookmakers to offer interesting bonuses to customers, so their audience is narrower and profits are lower. But this is no reason to feel sorry for bookmakers, they are not left without money.
Asia has the largest number of gamblers, so bookmakers feel good there. True, no one can give exact figures how many of them there are, because many of them work in the shadows. For the Russian territory they name the figure 700 million dollars. This is the figure for legal BKs, where part of the money goes to taxes. But there is a chance to be limited to a Curacao license and earn more due to the absence of mandatory fees.
According to the agency “Research and Markets”, currently the average turnover of bookmakers around the world is about $200 billion per month. The European market share is still large, a little over half, but it is understandable, because the bookmakers on the Internet began to develop in the UK. But the figures differ in each European country. The leaders remain bookmakers from England and Germany.