How do Locals thats use PPH shops turn a profit?

[UntilTheNDofTimE]

Was reading a thread about PPH and then was thinking about all the fees involved...
How can they possibly make money?
1) They probably pay $5 per account per week for each player, maybe more i have no clue
2) In this type of business W/U or M/G are usually used so you have to cover fees on all payouts/withdrawals( if you deal only with locals you wont have this expense)
3) You pay your sub agent 25% of all net losses per week.

If everyone picked 48% winners which would be a bookies web dream you still have weeks where your players are wining big. If you had a players that won 900 1 week and lost 1,000 the next week. every single week of the year, the 25% your giving the sub agent would eat up all your profits and more. This is not to mention the fees you pay the PPH website or 5-20 bucks in fees your paying per pay out. Seems only way to make a profit here is if everyone always lost every single week. You couldn't afford variance where they win 1 week loose 1 week or else youd get murdered by giving your sub agent 25%

Or does it just come down too....if you have a big enough clientele you wont ever have weeks where the players win?

[Sam Odom]

The PPH i use is just like the old way except no phone calls... settle face/face. his expense is a little more but he has more freedom and probably safer

my other Local is old-time. phone only

[downsouth]

I know a few guys that have PPH shops. Weekly player fee is usually closer to $15 bucks a week.

According to them they make decent on guys betting dollars and up and basically break even on guys playing $25-$50, after fees and such. Also, generally 95% of folks lose consistently. Even when they win their dying to give it back the following week.

Guys take primarily local guys and said only out of towners or such come from local referrals of good clients. No idea how he exchanges funds.

Was talking the other day about how he had a guy during baseball that was playing over 100 plays each week and had only collected twice.

[Cuse0323]

Because we all lose in the long run.

[UntilTheNDofTimE]

Because we all lose in the long run.

should of titled this how do bookies who use sub agents turn a profit
Yes but its how you loose....

If a master agent is paying a sub agent 25% of all net loses and his group of players....

win 22 weeks out of the year at a average of $500 per week.
and loose 30 weeks a year at a average of $600 per week...

600 x 30 = 18,000 in loses( 4500 goes to sub agent) Bookies take is 13,500
500 x 22= 11,000

so the bookies profit is 2,500. By this logic it wouldnt make sense to be a bookie and youd rather be a sub agent. This is 2500 he wouldnt of had but still if you have players that are picking 47-50% the 25% you give your sub agent will be more than the vig your collecting. But i dont know maybe a pool of 10 players will always loose money every week.

[downsouth]

Are you sure sub agents receive 25% of losses? Seems a bit high.

[Cuse0323]

As long as they have enough players, there's going to be a group that consistently lose and lose big.

[UntilTheNDofTimE]

Are you sure sub agents receive 25% of losses? Seems a bit high.

I read it in a thread here at sbr n then i googled it and that number seemed to pop up at a few places. at 10% it seems like a goldmine. 25% would be a landmine.

Maybe sbr could tell us what they get for brokering and funneling players to sponsored sportsbooks for a chunk of net loses.

[Sam Odom]

What % does (did) SBR receive from 'Pro' sign ups ?

[TEXAS MICKEY]

Just like I stated in the other thread it's a pyramid scheme..""AMWAY for the GAMBLERS""

The Master Agent gets 10 subs, and those 10 subs get 10 more subs and so on so forth..........

[allabout the $$$]

from what ive heard sub agents have to pay back winning weeks before they start collecting again.

example sub agent gets 500 from the shop. next week sub agents players lose 1000. the sub agent only gets his cut on the 500 profit.

[TEXAS MICKEY]

I have a PPH account, and my sub only gets 25% of my losses. If I win, the winnings come from the Master Agent. And that's the way I understand they all work. Now, if a sub wants a bigger share of the pie, then he will have to pony up a share of the winnings. My sub, started out with a 50-50 deal, all his players were dollar to 5 dollar players and he could swing, then he got a dime player, and he had to let that 50-50 deal go, and gave all that action back to the Master Agent and only gets 25% of the losses.

[offshoreguy]

If everyone picked 48% winners

If ifs and buts were candy and nuts.....Sorry for bumping an old post but the OP is giving way too much credit to the gambler. Most gamblers do not even come close to hitting 48% and most sub agents receive way more than 25%. If the players win it is added to the sub's "red" or "make up" figure. The players must lose that amount back before the sub agent begins to get his percentage.

[jjgold]

Thats why they want NO ONE betting less than $100 per game

Its not worth taking the action

[The Prick]

lol

more markets=more action=more losers

aint that hard to figger out

[thetrinity]

Thats why they want NO ONE betting less than $100 per game

Its not worth taking the action

not true guy i dealt with took 30 dollar bets on pph, i was suprised it was that low

[offshoreguy]

not true guy i dealt with took 30 dollar bets on pph, i was suprised it was that low

Most I know take $5 bets online. $25 over the phone.

[jjgold]

If your an agent your wasting your time taking $30 bets

no profit

[TheCentaur]

As long as they have enough players, there's going to be a group that consistently lose and lose big.

That and they cut off guys that win

Guys can lose a million if they want but can only win 10k or so before they are shown the door

[offshoreguy]

That and they cut off guys that win

Guys can lose a million if they want but can only win 10k or so before they are shown the door

I believe they call that "minimizing exposure" in industry talk

[TheCentaur]

I believe they call that "minimizing exposure" in industry talk

I call it maximizing bull shit