How do Sportsbooks Make Money

There was a time when betting was considered a fun activity. People used to place bets for a few bucks and it was all for the sake of entertainment only. There was also a time when people were intimidated by the idea of visiting bookies and sportsbooks to place bets.

But the times have changed. The growth of the online gambling industry has revolutionized the sports betting industry. Today, there are bettors who still place bets for entertainment and earning some extra cash while there are some, for whom online betting and gambling are a serious source of income.

Result? Punters from all over the world are now freely placing bets to earn cash. The recent relaxations and the permission to use the offshore gambling platforms from the government has also removed several boundaries.

According to Statista, by the end of the year 2024, the value of the global online gambling market is expected to be more than $94billion. The current size of the online betting industry is estimated to be $46 billion, which means the industry will grow double in size.

Now let’s take a moment to take a look at some of the extreme profit-generating businesses. In the year 2017, the market value of Ireland based Paddy Power Betfair sports betting company formed in the year 2016 was estimated to be around $10 Billion. In the same year, Draftkings in the United States alone generated more than $155 million.

Apart from these figures, according to legal sports reports the amount wagered in the United States alone was around $22,178,753,419 and the betting revenue generated was around $1,530,771,087. These figures clearly paint the picture of the bright future of the sports betting industry.

But one question always remains unresolved in every new investor’s mind. How do betting sites make money? Everyone knows how bettors make money but what about the sportsbooks? How do sportsbooks make money in millions and what strategies are they deploying to maximize their profits?

Hence to resolve all your queries, to help you understand how do sportsbooks sites make money, how they operate, and to help you uncover the secrets, we’ve written this article.

But before we jump in and take a deeper dive to answer the question of how do betting sites make money, there are few terms we must go through. Let’s take a look at them.