Golden comes from the respected Oblongish family line, who before the destruction of Megawin had lorded over the odds factories for aeons and were envied for creating the very best betting markets on planet Megawin. Though great success creates bitter enemies.
Tormented for his golden oblong shaped face, Golden Oblongish resented his father for naming him in such a ridiculous way. Why did he have a golden head? And why was it shaped like an oblong? And why did his second name have to be Oblongish?
It was only years later when his father took him to the Great Mountain of Reels and explained to him the origin of his name. There was only one reason — it was to build his strength and courage. If he could stand strong against the bitter and jealous bullies at school, even with the most unfortunate face in the universe, he could take on anybody.
And so he did. He continuously beat the odds. And after just ten years he had taken over the odds factories from his father, generating more odds boosts Megawin had ever seen in a single year.
So to this day, even after fleeing his home planet, he knew he was destined for greater things. His mission now is simple — to bring the best odds to Australia.
For all the sports fans out there, you might have wondered just how do bookies make money? Whenever you are placing a wager it might seem that there is only one winner and one loser, so where does the bookmaker make their cash?
In this article, we will be taking a close look to understand just how bookmakers make money and how it will affect you as the customer. Every operator needs to have some sort of income in order to offer their service, but sometimes you might be losing out on quite a bit of funds when the bookmaker decides to take too big of a cut.
Once you have been through the process of choosing an online bookmaker, you would have surely come across the range of payment methods and fees that you will be eligible to pay as a customer. These fees are usually put in place when a bookmaker has to go through some work to complete the process. You might find that there are account fees applicable to the service, there will certainly be some fees for depositing and withdrawing from your account and sometimes bookmakers have unique fees associated with their service. If you are only getting started, be sure to check out our guide to betting on sports online.
Before we can take a look at just how bookmakers make money, we first need to understand why it is important. When you have signed up for a bookmaker service, you are signing up with the individual or company to facilitate your sporting bets and find other bettors out there who may have an opposing wager. If you were to place a bet with a mate, you would be handling a direct transaction and no funds are lost between the two of you. With a bookmaker, their service is to be the middleman between wagers and to run this service, they will take a portion of customer bets, known as vigorish and this helps to fund the online bookmaker.
It is very important to remember that not all bookmakers are operating legally within the online industry. There are so many offers out there that new ones are bound to spring up all the time to compete with the giants on the scene. To ensure that you are not dealing with an illegitimate service, it is highly recommended that you take a close look at the licensing that the bookmaker has managed to obtain. These licenses are awarded by different regulatory bodies all over the world and they ensure that bookmakers operate within a strict list of regulations.
Once you know your bookmaker is licensed, you will also need to take into account the legality of placing your wagers. If you travel abroad, you will need to confirm that you are able to carry on placing bets from the destinations you are travelling in. Bookmakers will be taking a cut of your wagers so it is best to stay on the right side of the law when it comes to online sports betting. To take a closer look at the issue, head to our page where we answer the question, is online gambling legal in Australia.
How Much do Bookies Make per Year?
If your bookmaker service is legal, you can start to look just how they go about funding their service. Every bookmaker on the market will have odds that are available for certain sporting fixtures. These odds are very carefully calculated by expert statisticians and are put on offer to the customer base with a certain amount of spread between the possible outcomes. There are also lines that will apply to each game's odds, depending on how customers bet on a certain fixture, bookmakers can adjust these spreads and lines to always play in their favour.
Once a bookmaker does this, there is no going back when a customer has placed a wager. You might find that your friend placed a wager the week before you and has different odds on the certain fixture you are both interested in. The bookmaker tries to maintain a balance with its odds by offering big winnings to the underdog team, if a fixture is fairly balanced in terms of the wager to payout ratio, then the bookmaker is set to win a fair amount of money from the transaction fees applicable to the customer wagers. If an event is largely one sided, bookmakers tend to lose a fair amount of money dealing with all the payouts.
A different approach to the conventional bookmaker system would be a betting exchange. As opposed to the middleman process that most bookmakers adopt, a betting exchange will allow sports bettors to wager in direct opposition to one another. The exchange then makes its money by taking a commission of the wager that is placed. To find out more about exchanges, head to our betting exchange in Australia page where we take a close look at how their business is conducted.
Another technique that bookmakers make use of is to overround odds. This tactic is known as vigorish. To best describe how vigorish is done, we will take the example of a knockout football match. Imagine that the possibility of each team winning is exactly 50/50. Ideally, you would be able to place a wager and double your money if your team managed to win. The opposing bettor would lose their equal stake which would be directly paid to you. If this were the case, a bookmaker would make no money and you would be the only winner in the deal. To counteract this, they will influence the odds ever so slightly to ensure that they can claim some funds. You might find that each team will have odds of 1.9 instead of the ideal 2.0 odds. This will result in the bookmaker having to pay out less total money to the customers and will have them claiming 0.1 of the wagers that have been made.
Finding the Right Bookmaker
With the concept of how bookmakers make money in mind, it is then up to you to decide which bookmaker service you are going to use throughout your sports wagering career. There are plenty of operators on the market and customers have become more inclined to keep things like vigorish in mind when signing up for a service. You would ideally be looking for the best bookmaker for beginners in Australia that seeks to take the smallest portion of funds from each wager as possible. This can be quite a challenge for customers out there as you would have to sit doing calculations with each of their service offers.
To avoid the huge amount of work that this will require, we have included sections in our review structure that takes these factors into consideration. You will be able to determine the quality of odds on offer from each bookmaker by browsing through our reviews and guides right here at CaptainGambling. Once you have decided to open a new account with an online bookmaker, make sure to browse through all of the features alongside our reviews to get the most informed opinion possible. This will allow you to find the most suitable operator for your online gambling needs.
With our reviews in mind, you will also need to consider more personal factors to narrow down the list of potential bookmakers out there. You might be interested in specific sporting markets but find that the bookmaker with the best odds and least vigorish will not offer any odds on your preferred fixtures. You will need to compile a list of requirements within each bookmaker service to determine if they will manage to meet your needs. You can then use this list to cross-reference bookmaker offers and determine your perfect match of a sportsbook. If you are interested in how you can fund your account, head to our deposit money into a betting site in Australia page.
3 Tips to avoid High Fees
If you are using an online bookmaker’s service, you will need to keep in mind just how bookmakers make money to try and minimise the amount of your funds that will go towards their service. If you understand all of the tactics that they use, you can try and avoid these by making use of our tips. Our experts have plenty of experience within the online sports betting industry and know just how to find a great offer.
Use our reviews
The first tool that you can use to avoid any unnecessary fees and dodgy odds would be our operator reviews that have been conducted by our CaptainGambling team. Our experts have put together a world-class review structure that is maintained with every bookmaker review that we conduct. We then use these reviews to rate bookmakers according to the service that they have on offer. We also take a close look at the specific methods that they use to make money from their customer base. This will usually involve payment methods and transactions fees so keep an eye out for those two terms.
Double check what you are paying for
It is quite easy to simply deposit your funds with your online service provider and just deal with the fact that there has been $5 subtracted from your deposit. Don’t get too used to this as bookmakers can change the amounts they charge in a moment’s notice and you will have less funds to wager. Take careful consideration of all the fees that you are eligible to pay and double check every now and then where all of this money is headed to. You might find that you are paying unnecessary fees within the bookmaker’s service and this should be queried as soon as possible with the customer support team.
Keep your eyes on the market
You will also need to keep a close eye on the sports betting market. This is always recommended as it allows you to stay up to date with the latest betting services out there and you might find another bookmaker’s service that manages to meet your expectations with lower fees. For this reason, you should constantly check back with our service here at CaptainGambling to determine just what is available on the market and if it manages to beat your current deal. You can save plenty of funds by knowing what the industry standard fees are. If you are interested in taking no risks, head to our no risk matched betting page.
This brings us to an end of our how bookmakers make money article. Understanding just how these online service providers manage to make their income is crucial if you are looking to minimise the amount of your funds that go towards their service. Our team of experts have conducted thorough research to bring you all the vital information. Knowing exactly what licenses your bookmaker has managed to obtain is vital to determine the legitimacy of their service. You can also keep in mind just how they go about these tactics to determine if they are trying to make a quick buck or if the service is fair.
Use our expert tips when you are on the hunt to find the ideal bookmaker and try to keep an open mind about joining more than one service out there. You might find that the ideal offer is just waiting to be taken advantage of. Be sure to check back with this page for all the latest information and developments within the online sports betting scene.
How Bookmakers Make Money FAQ
🕵️ Where can I find out how bookmakers make money?
If you are an active sports bettor, you are probably wondering just how bookmakers make their money. Betting on sports events is just putting down a wager against other people who believe the opposing team will win isn’t it? Here at CaptainGambling, we have put our experts to the task of finding out just how bookmakers make their money and how that will impact you as their customer. Be sure to head to our page where we take a look at just how it is done and we discuss how you can try and make the best of it.
💵 How much do bookies make per year?
Depending on what bookmaker you have signed up with, they may have different income streams than some of the bigger bookmakers on the scene. Predicting just how much a bookie makes per year can be quite a challenge but our experts have gone through the majority of offers out there to determine just how their income is made. All of the articles available here at CaptainGambling are provided free of charge to any interested readers and you can find just about everything sports betting related right here within our service. Head to our site to find out more.
💼 Are bookmaker services legal in Australia?
Whenever you are making use of an online service, the first consideration you will need to make is whether or not you are on the right side of the law. There are plenty of illegal services out there and they tend to advertise themselves as legitimate deals. Our reviews take a close look at the licensing that a bookmaker has managed to obtain to provide an invaluable insight into the quality of their service. If you are on the market to sign up with a new bookmaker, be sure to use our reviews alongside your browsing to try and stay within the laws set by the Australian government.
💭 Do bookmakers take a cut of my winnings?
If you have placed a wager that managed to win, you might notice that you are not receiving the full amount that was advertised. To determine just where some of the funds go, our team of experts have been put to ther task of figuring out just how bookmakers make their money and provide advice to what you can do to avoid any unnecessary fees. To answer this question, you will first need to browse through the review of your specific bookmaker as each of their service offers tend to differ significantly. Head to our page to find out more.
🏦 Do I have to pay an account fee with bookmakers?
Once you have opened an account with your preferred online operator, you might have to pay a certain amount of account fees in order to use the service. With online sports betting, it is fairly common for service providers to have additional fees within their service. Our reviews have taken a close look at each offer available on the market to bring you the most important of details surrounding each of them. They are also provided free of charge to any customers that are interested in the online sports betting market. Head to our page now to find out all you will need to know.
Above all the Captain demands transparency — and he gets that by seeing over the production of brutally honest bookmaker reviews. Only through constructive criticism will he weed out Dodgybookie and his evil bookie cronies.
Favourite Betting Apps
The Captain spends 60% of his time flying the cosmos — so of course he needs the best portable betting experience man can offer. The Bookie Rangers are also tasked with reviewing the best betting apps in Australia.
Bookmakers Per Sport
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Other Important Pages
The whole is greater than its parts — the Captain's motto for life. As such, the pages in this column reflect the inner workings of this site. Nothing that will interest mere mortals, but will certainly make the Google gods happy.