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Pay Per Head Sportsbook Owners Competing with Bigger Online Shops

Although the current U.S. sports shutdown has hit all sportsbooks, including the most significant online companies and those in Las Vegas, one sector has thrived. Individual sportsbook owners that use sports betting software have continued to grow their companies.

Organizations like PayPerHead.com provide betting software for bookies that make it easy for individuals to offer the same sports betting options as more massive, more heavily financed, sportsbooks.

On match days, a person who runs a private bookmaking company can offer La Liga, English Premier, and Italian Serie A wagering. Once the National Basketball Association returns on July 30, pph sportsbook owners can also provide betting on NBA games.

Major League Baseball launches the U.S. sports return on July 23. On that day, the New York Yankees battle the Washington Nationals and the Los Angeles Dodgers take on the San Francisco Giants.

For a small fee per head, bookies can use pph services to provide wagering on both MLB games as well as all props associated with those games.

Key Points

  • Pay per head service providers are attracting betting action away from larger online sportsbooks
  • Companies like PayPerHead are offering the same sports betting options as larger books
  • Entrepreneurs can create an online sportsbook without much investment

How does bookie software work?

Bookmaking software works by providing frontend and backend interfaces that allow individuals to run their own sportsbooks. PayPerHead, as an example, offers a full suite betting platform.

Bookies send their clients to the platform so players can make wagers. Bettors create their own accounts, use a financial transaction system to deposit money, and then wager on the same sports betting options available to a player through William Hill or another online betting institution.

On the backend, bookies use the same financial transaction system to make payouts or collect. Through dashboards, bookmakers can maintain their client bases. They can also take specific wagers off the board, change betting lines, and run their sportsbooks based on reports.

Some financial transaction systems have become incredibly robust. PayPerHead allows players and bookmakers to provide transactions in both fiat currency and BTC.

Why are individual sportsbook owners gaining customers?

The U.S. sports shutdown shocked the industry but many individual bookies have managed to thrive. One of the reasons is because of how most bookies run their businesses.

Bookmakers that use pph services provide wagering to a small group of sports bettors. Those sports bettors don't play with anyone else. They also are often casual bettors, which means they will wager on online casino games, with live dealers, and on horse races in digital racebooks.

Pay Per Head said live dealer casino handle grew 317% from January to the end of May. The trend started before the Covid-19 Crisis. But it hit peak growth during the crisis.

The company’s online digital casino grew handle 185% from January to the end of May. Like live dealer casino handle, the trend began in January but peaked during the coronavirus caused sports league shutdowns.

The main reason for growth? After the NBA paused their season and MLB decided to delay their season, bookies called up their clients and told them about other things on which they could bet.

While larger online shops struggled to find a way to get their clients to wager on eSports and other obscure betting options, bookie agents called clients personally and told them about new bet offerings.

U.S. based bookie agents also had a chance to promote NFL futures betting during the crises. By doing so, bookmakers kept their players wagering with them.

Also, PayPerHead.com offered a no sports equals no fees promo. The promotion allowed per head agents to use the company's Basic Plan services for free during the shutdown. The company will extend the promo for two weeks after the first MLB game on July 23.

Their $3 for 3 months promotion kicks in after the no sports equals no fees promotion. During those three months, pay per head agents can offer wagering on the Kentucky Derby on September 5, betting on the NBA Orlando Playoffs, and wagering on the first two months of the NFL Regular Season.