Has The Internet Age Effected Bookies Profit Margins?

[ironlock]

Wantitall,

It appears you are flogging a dead horse trying to explain whats going on in the real world of betting. Thats why I take some of the ridiculous comments some posters make with a pinch of salt.

Does this refer to me?

I think alot of the misconception out there is due to people forgetting that locals are operating on CREDIT...which means COLLECTIONS and COLLECTION PROBLEMS..., this fact alone ELIMATES most options and creativity as far as calling off, scalping, middling...and all that jazz.

If your collection rate is about 85%, then scalping the action for a 5% guaranteed 'profit' doesn't make much sense now does it.....???? Or screwing guys on value, just so you can go bet their money at a better number...only to be stiffed...IS NOT A GOOD BUSINESS MODEL!

Yeah, if you had a book with 100% collection, then yes, maybe MOI's business model returns more profit per unit of risk...., but like I said...his business model exists in the theoretical world..where everyone posts up or their credit is gold.

Iron.

 

[CoachLT]

Yes is still alive, and he"s in good health, noway possible I can make the BASH this year, I will be too busy...

Rainbow, sorry to hear you can't make The Bash. Hopefully , one day, we can touch base. You bring a Lot to the table. Hang in there. LT

 

[wantitall4moi]

The race track comparison might be a reach, but defiantely shows the comaprible holds and what operating cost do to places that should be making money hand over fist.


As far as limited bankrolls are concerned. I have said it time and time again, it would scare people straight if books were forced to show exactly how liquid they really were if they were forced to pay any and all outstanding balances due to players, creditors, other books, and government fees and kick backs.

Just look at sportsbooks in Vegas, a place where casinos are truly run with a business model in place. Books are a side note for the most part. Sure the places might be pumping alittle more into them now with the influx of poker revenue, but for themost part the books are on the basic shoesring. Understaffed, and mostly there to keep the aura going.

Books in Vegas barely make a profit, not because they don't have handles,and not because so many guys now bet offshore, and not because they are afraid to take bets. Simply because the businessmen that are now in the business know that bookmaking is nickle and dime stuff compared to what they can make on slots, video machines, and even table games where their holds can be somewhat higher, and the action a little more steady.

Another thing I have said time and time again, if Vegas could get into this whole new genre of interactive sportsbetting with online capabilites, they most certainly would. Why do you think the foreign books are doing it? Because it means more cashflow and more profits. Also a reason why so many books are also starting up casinos and poker rooms as well. Sports betting will probably go the way on the net that is has gone in Vegas.

Other gambling is becoming more main stream. We have already seen more and more books go back to a staight -110 line in football, and the baseball lines have gotten slightly worse at some places.

These foriegn books are now realizing the cash cow of the fast paced gambling areas, where they can not only have a higher hold, but actually manipulate rsults, something Vegas can't do, and somethingthat no one can tell me they do not do. No computer, no matter how advanced, can truly keep a random sequence of events takingplace. A pattern develops sooner or later. Nothing can bemaufactured from something else without some sort of pattern. So computer prgram manifesting dice rolls, or cards dealt is not random. And that is asuming that the places are truly on the up and up. Which i am not convinced of either.

If poker continues the boom, which I do not think it will. But if it does, it is going to seriously hurt sportsbetting. Not only because of the books having less interest, but also because people will have more money tied up or lost in that area, and simply won't be able to bet on sports.

And yes in my model it is all post up bets, with no credit given.

 

[winbet]

ironlock,

It wasnt aimed at you or anyone else in this thread, only pointing out the ridiculous odds some posters say they get from locals. It would seem you have a working plan for your business which has fairly standard practices and like any other practice, if it doesnt work, one will soon be gone from the game. All I am pointing out is, there are more ways, depending on your circumstances. I had different approaches when I was a so-called local, owned 1 shop and owning 2, not to mention the different attitude I had to have when working for the big Bookmakers. Lots of things can effect the way you have to run your business, but the two main ones are turnover and average amount staked per bet. The trouble starts with 2 horse races, not only are the margins minimal but one is more likely to take a view. My partner and I argued all the time about this problem, his view was that we were bookmakers, and the odds would work out in the end. My view was if someone bet New England 4/5 M/L, you were automatically betting the opposition, albeit at 5/4. Thats OK if you fancy the opposition, but what happens if you think the 4/5 is a stupid price and should be 1/2, not a comfortable position. So, when a bookmaker is a judge at a sport, he will use his business to bet at enhanced odds. As I have said before, judgeing from the amount of movement in off-shore books odds, to my mind, they are starting out with a view and then arbing with the flow.

 

[Boddie]

Sure is one of the best. My .02. These things I know are true;

1.Younger new players go right offshore. Locals are more apt to attract the deadbeats who want credit.
2.Internet has trimmed at least a 1.5-1% off the average hold. Too much free info to grab off the net.
3.20 years ago teasers were -120. Today, idiots are offering even on college?

I am amazed at how far some shops will go to attract business. The business is getting less lucrative every year.

 

[wilheim]

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