How to Set Your Sportsbook’s Limits

One of the concepts you will come across while you learn how to be a bookie is to set limits. This is very crucial in making sure you can run your sportsbook without having to risk and spend too much money. We’ll teach you how to set your sportsbook’s limits – for wagers as well as credit lines you give to your players.

But what is a bookie to do with limits? Wouldn’t having higher limits potentially give you higher income? Yes, and no. You have to understand that even the best casinos in Vegas will have limits when it comes to certain wagers- and sports betting is definitely one of them. Why? Because if your player loses, then its good for you. You get to pocket the profit. But if your player wins, and you don’t have enough money from losses to give them the payout, then you will pay from your pocket. Let’s go into more detail.

Your Sportsbook’s Limits

First, we’ll talk about the credit limit you will give to your players. Most bookies start off with zero credit. They will ask for deposits on your wagers. Some will eventually give credit to players they know are reliable – most often regulars. Some bookies, however, never extend credit. Why? Because just like in any business, any credit you give out is a loss until you get the money back – with interest or profit. If you give your player a $100 limit per day, then there’s the risk that you will be out $100 if your player bails out. That means you have to shoulder that amount. Always get to know your players well before issuing any credit. If you do, start low.

The second type of limit you can see in sportsbook software like EasyPayPerHead are limits on wagers. This helps you ensure that you can cover any wager being made in any event. Think of it this way- if you have 10 players, and their limit is $100 per wager and they all lose, you get to keep them all. If they all win (again, this is a worst-case scenario), then you give them the payout. The maximum payout you make is the winnings on a $100 wager less the vig. Even if you lose money, at least you can limit your loss. On the other hand, it will also limit your winnings.

Eventually, you will learn how to balance the limits on each player. Your pay per head software should have the feature that will allow you to change limits per player. That way, any time you want to adjust limits, you can do as you please. Just go to the panel of your sportsbook and look for limits. Feel free to browse the limits for each player, and change them accordingly. Remember, there is no lag time, so any change is reflected almost instantly.