On-line bookies margins

Let me start out, by saying, Bookmakers are generally :

* Spineless

* Clueless

* Whinging

* Lazy


So, on the whole, they have v little use for pro-gamblers, as they just wont lay u a decent bet.

There are some exceptions .. Pinnacle.com, have a very good reputation for laying sizabe wagers -- $100k on prominent NFL/Baseball/Soccer .. and ther margins, are reasonable .. maybe 4-5%.

Some on-line books, take the piss, at betting to 22% margins, and even then, are scared shitless, to acually lay a bet, to take out, maybe $300.

They are fucking unbelievable, and deserve to have their licences suspended.

Ascot

This is a proper Grade 1 Track ..

We got in, 2 hours before racing .. (Bookies need to be there, 1 hour before racing, to be able to 'claim' your pitch ..), and it is great, they now have a drop-off point, where bookies can drop off all the kit, and not have to lug it all from the car-parks.

This kit, normally includes ;

A Digital Board
1 or 2 heavy duty batteries, to power the board/printers
Assorted printers
Assorted signs / name plates
Sometimes, a joint .. which self-assembles .. thou you can rent, for £25 a day

We had a fair drive thru, negotiating via some back-roads, which only taxi-drivers and bookies know.

We had high hopes .. as the car-parks were v busy, 2 hours before the first race.

Our kit, had some issues .. the bracket which holds the digital joint, was badly drilled, so it wouldnt fit properly. There is no-wi-fi on the course .. at least for us, and getting a cell-signal, is v tricky. The laptop software, was faulty .. so, all these problems, were both draining and an inconvenience.

Unfortunately, 'free' day, encourages locals to have a day-out in the sun, and just cruise, and it wasn't really a betting crowd .. so, although we had paid £60k for our pitch .. (14 days racing, a year), takings were v average, and results were poor, (including a winner for The Queen), so, we lost. It didnt help, about 70 other bookmakers turned out .. encouraged, as it was free-to-bet .. there were just too many bookies, for the crowd.

Am not really sure, the £60k was a good investment .. there are 2 meetings, next Friday night/Saturday, which will be a better guide, but, at this stage, its a disappointment.

All-in, we left, at 9.00am, and got back, at 8pm. Spent £700 in expenses, and lost betting .. so, have some headway, to make-up.

Racecouse thoughts

On the way to Ascot .. got a very decent pitch, in tattersalls, and its fee entry for the public.

This is a big deal, for racecourse's ..

Currently, most racecourses charge between £12 and £26 for Tattersalls entry, with just Towcester racecourse, to my knowledge, being free entry, every day. (I am a big fan, of Towcester .. its a v well run course, who get good attendances, and make a return from a great hospitality business, and selling the picture rights/food concessions).

As this is the fist race day of the season, Ascot have given locals, free entry passes, and a big crowd, of maybe 10000, is expected .. especially as summer, may be finally on its way.

Ascot is a grade 1 track, which spent .. maybe £40 million on a re-design, some years ago, and really decent races are run. We have only occasionally, bet there before, and it will be an interesting day .. especially as its a southern track, and people who come, might be expected to have a few bets.

There are many things currently wrong with the racing structure in the UK. Each vested interest, will have their own favourite, but some of mine, are :

1. Starting Price .. manipulation.

The reader should understand, betting shops are relayed the current betting prices, on events such as greyhounds/horses, from the bookmaker's working at those meetings.

These bookies, work to a betting over-round, of probably 1-2% per runner .. so, a 6 horse race, might have a 10% over-round, whilst a 20 runner race, might be 20%.

A 6 dog greyhound race, will always have an over-round of 20%, and its just theft.

On many occasions, a dog will be showing .. say 4/1, and this is the price, that's being bet, up and down the country, in the 8000 betting shops. On Betfair, the dog will usually be bigger, sometimes much, much bigger.
Last week, I saw a dog, that was 17/1 on Betfair .. and just 7/2 in the shops.

This cannot be right .. its blatant theft.

I understand a bookie has to have a profit margin, but, the un-informed many, need to be protected.

SP has to include the betting exchange mechanism, like it or not.


2. Bookmakers terms, are not uniform.

Generally, in a 8 horse race, each-way terms, are 1/5th the price, for a place. Some races, (normally, when the favourite is odds-on, these terms are unprofitable for bookmakers), and racecourse bookies, can legally change the terms .. as long as they are displayed. So, they might go, 1/7th the odds a place .. which is probably more realistic.

The problem is, all bookmakers bet differently, and its easy for the general public to get ripped-off - especially if they are casual punters. I am sure, standardised each-way terms will come, soon .. but, its already been too long.

3.Betting shops, wont lay a bet.

This a a thorny one, as these firms are now run by bean counters, who understand, their overheads, and want to dissuade professionals from betting, with them.

The bean counter will say, he wants to lay, the horse, or whatever, to a regular mug, who will more than likely, lose it back, on other bets. This makes business sense, but, gives the racing industry, a bad image ..

If a horse is available, at 7/2, to a mug, it should be laid to lose .. say £50, to anyone. I understand, people can walk round, the v many betting shops, placing bets in each one, and v significant liabilities can accrue, but, that's a process, the betting shops, need to manage - thru the pricing mechanism.

Racecourse Bookmaking

In a previous life, I was a racecourse bookie, and in some ways it was fun, others, a living hell.

Mainly due to taxation complications, of professional bookies, as opposed to professional gamblers, I moved away from the racecourse, but, 10 yrs on, Betfair has made life v hard for pro gamblers, and the racecourse is an option.

I have spent the last few weeks, looking at horse-racing in the UK.

There are about 60 horse race-courses in the UK, spread up and down the country. On any given day, there is probably an average of 3-4 meetings.

Each racecourse, have different numbers of fixtures. The all-weather tracks, like Southwell, Lingfield and Wolverhampton, have between 80-100, per year. Some have as few as 20, with an average of .. Say 25.

Raceourse bookmakers, now have to buy a 40 yr licence, to bet at each racecourse. These licences, are bought and sold, thru an auction process, for licenced bookmakers. Each licence, or pitch, as they are commonly known, is valued based on its seniority.

Seniority, is just that. Number 1 pitch, has first pick, where he wants to operate from, Number 60, has just that. So, at an average course, Number 1 pitch probably costs the bookie, £50k, Number 60, £500.

The difference in value, is just associated to what money, the bookie can hope to take, off the public.

Each bookie, will pay, to work on each day, 6 times the Tattersalls entry money .. so, if Joe Public pays, £21 to enter, the bookie will pay £126 to work.This payment, is the same, for Number 1, and Number 60.

They also, now pay a yearly marketing fee, of about 8 times, admission.

If we look at an average racecourse, where they race, 30 times a yr.

If you have number 1 pick, the cost of working on a day, is :

£50k for the licence, spread over 40 years, divided by 30 meetings .. so 50000/1200 = £400

The days licence - £121, plus marketing fee .. £8

You need .. 2 staff .. probably £100 each

The kit to operate as a bookie, costs .. £15k, so, lets take £50 a day for that.

Petrol etc .. another £50.

All-in, if you bet in a prime spot, the costs are £800. In a poor spot, £350.

Bookmaker income, is based on margin. In a good spot, you would hope to take £1000 a race, probably more, at 10%-15% margin. so 7 races, on average, you would hope to win £1100, less expenses of £800, u get £300 per day .. thou, you have a huge capital investment, in racecourse licenses, which will fluctuate in value, over the years.

A poor pitch, will take, maybe £400 per race .. at worse margin, so, its v v hard .. thou, u probably have less workmen, as its less busy.Poor pitches, only really have a value, on realy good days (summer usually), when a lot of people attend .. a racecourse might get 2000 people attending, a run-of-the-mill meetng, but, its summer days, might get 10000. On these days, all bookies will make money, off-setting, the v many poor days, where it rains, and few people attend.

Its a tough game, made harder by the effect of mobile betting, as people can now bet on their cell-phones, via apps. As a rule, people do like to bet in cash, but, in hospitality areas, the temptation not to move, to place a bet, is quite big.

Anyway, having seen quite a few raceourses over the last 3 weeks, its obviously an industry, going thru a lot of change, and is greatly affected by the strength of the local economy. South of the UK, is still fairly strong, as is the north, but the midlands, is really suffering .. (from industry moving away/closed).

IMHO, there are still too many racecourses in the UK, and the prime land, will no doubt, be lost to housing development. I would think, 40-50 racecourses would be sufficient - and more viable, for everyone.

The sheer cost, of becoming a bookie, makes fresh blood almost impossible. This is worrying, from the long term aspect, but, some bookmaking families will no doubt train off-spring. I would hate to be a new guy, starting out, with a bank, of .. say £30k. It would be v hard. With £200k to play with, you would have a chance, but .. banks, wont lend u anything, based on these licences, so, basically, getting the capital .. will prove beyond, most.

Working as a racecourse bookie, you see a lot of things, some funny, some not so.

In previous years, the off- course firms used to hedge a lot of their off- course liabilities, which may have accumulated at their betting shops, in the High Street. This hedging, would reduce the Starting Price, at which most off-course bets are settled, and everyone was happy. These days, the SP mechanism has become outdated, as its doesn't reflect betting exchanges, and less hedging takes place.

This is natural evolution, but, yet another source of income, for a bookie, that has dried up. Experienced bookmakers, with capital, will still win .. But, it's no fun. Working, when its pouring with rain, and your only cover, is an umbrella.