How to open a bookmaker’s office
The bookmaker business is rightfully considered one of the most profitable in the whole world due to the huge turnover of financial resources. There are a lot of gambling people, and the temptation to win money only thanks to your intuition (or a reasonable miscalculation of the outcome of events) is quite large. Today, successful bookmakers can boast quite good profitability.
How bookmaker works
Bookmakers accept bets on the outcome of various competitions, competitions and tournaments that are popular with fans. Most often these are sports competitions, horse races, and jogging. Bets can also be accepted regarding political events (for example, elections), financial, cultural, entertainment events. Players place bets (they are expressed in monetary terms) on a certain outcome of the event. The probability that the event will end is determined by a special coefficient.
Upon completion of the event, all players who “guessed” its outcome are paid a sum of money in the amount of their initial bet multiplied by the odds. Those players, whose expectations were not met, lose their deposits, which become the property of the bookmaker’s office.
The bookmaking business can be called seasonal. Whatever one may say, the most popular sports game is football, and it is during the season of major football competitions that sweepstakes fans become more active.
Bookmaker business plan
Like most types of gambling business, bookmakers are advantageous in that they have relatively low opening costs and fairly high subsequent profits. Investments in starting a business will be something like this:
1. Registration of LLC – about $ 500.
2. Obtaining a license – about 2500-3000 dollars.
3. Purchase of hardware and software – about $ 1,000.
4. Purchase of furniture – about $ 600.
5. Rent – about $ 200 per month (if the room has a minimum area).
6. Payment for Internet services – about $ 30 per month.
7. Salary fund – about $ 400 per employee.
8. Advertising and promotion – from $ 300 monthly.
What income can a bookmaker expect? Of course, it all depends on your entrepreneurial skills and even the luck factor. But on average, the cost picture described above can bring you around $ 2,000 per 50 clients. In such a scenario, the business will pay off in about 16 months.
How to organize a betting business
Bookmakers, one might say, have replaced gambling establishments for many gamblers, which were banned in Russia relatively recently. It was then that bookmaking began to develop rapidly – more and more such offices began to appear, while during the heyday of casinos there were very few of them. The state recognizes the bookmaker business as completely legal, and even encourages the opening of bookmaker offices, since their owners pay a very good tax to the state treasury.
Obtaining a license
Without a license to conduct the relevant activity, you will not be able to open a bookmaker’s office. It is quite possible to obtain a license, however, it requires some effort. The body authorized to issue licenses is the Federal Tax Service. In order for your application for a license to be accepted, you must provide the following documents:
1) confirmation that you own net assets of 1 billion rubles (about $ 27 million);
2) a letter of guarantee from the bank in the amount of 500 million rubles (about 13 million dollars).
The second way to start a betting business is to implement an agreement with a legal entity that already has a license for this type of business. As a result of such an agreement, your company becomes a branch and can fully carry out betting activities. To become part of an existing bookmaker company, on average, you will have to spend at least 4 thousand dollars, plus every month you will need to pay a certain percentage or a fixed rate to the licensee.
To conclude an agreement with a bookmaker, you must:
1. Register a limited liability company, and provide the licensee with confirmation of this registration.
2. Conclude a lease agreement for the premises where it is planned to locate the bookmaker’s office.
3. Obtain a document from the Bureau of Technical Inventory.
4. Obtain documents from government services (fire, sanitary and epidemiological), confirming the compliance of the premises with all norms and rules.
5. In some cases, bookmaker companies ask to provide information about future employees of the branch (passport data, tax identification code, photocopies of existing identity cards).
The conclusion of an agreement with the licensee is also beneficial in that throughout the entire joint activity he will provide you with all kinds of support regarding accounting, legal and technical issues.
More willingly, licenses are issued to people who already have experience in the gambling industry.