It might seem dangerous and even a bit silly of a bookie to give credit to his bettors.
But the truth is that most betting businesses operate under this scheme.
This means that bettors do not have to fund their accounts and pay each of their bets upfront. The bookie establishes a monthly or weekly line of credit, and the bettor can place the bets he wants.
Bookies give credit to their bettors because this brings several benefits to the business.
Bigger Bets
One of the benefits of offering bettors credit is that it causes them to bet more.
This is due to a psychological effect that makes the bettor think that he is not risking so much money.
It is the same that happens when we purchase with a credit card. Our brain thinks that we are not spending money and that the amount we pay will be a future problem that we do not have to worry about right now.
The opposite happens when the bettor must cover all bets upfront. Having to fund his account with cash makes him more aware of the money he is betting. For this reason, they tend to hold back and bet less money.
Feeling of freedom
By having credit to bet, the player feels freer and makes bolder moves. When the bettor begins to lose, he will try to recover the losses. Since he does not have to worry about paying the lost money immediately, he tries to get it back by playing so he doesn’t have to take it out of his pocket.
Credit is not for everyone.
Giving your bettors credit can be very beneficial for the business. In fact, it can represent one of the best strategies to increase the profits of your betting business.
But credit is not for everyone. You should make sure that you only give credit to players who can cover their debts.
It would be best if you also established credit limits for each player. This way, you make sure that the players do not exceed and bet amounts that they cannot pay, which puts your business at risk.
The best way to protect your gambling business is with a good Pay Per Head provider.
Companies like VIP Per Head provides two powerful tools that will allow you to give credit to your bettors and at the same time protect the business.
Bet Limits
Using the bet limits tool, you can set the maximum amount that a player can bet. In this way, you make sure that the player stays within an amount that he can pay.
If the player reaches his limit, his account is suspended until he paid.
Reports
Through the reporting tool, you will know the habits and betting patterns of your players. This way, you can determine whether or not a player is worth giving credit.
You can also verify how much money the players owe you and collect in a faster and more efficient way.
