You are here: Home Gambling Tutorials What is Pay Per Head?
You may have heard the term pay per head before and wondered just what all the buzz was about. From soup to nuts, here is everything you need to know.
Pay per head is a turnkey software service for online bookmakers that allows them to run their sportsbooks. The term 'pay per head' refers to the weekly payments based on the number of players (or heads) that are actively betting.
The pricing is allocated only to the players that have graded bets each week; bookies don’t pay for inactive players.
With this cost structure, becoming a pay per head agent can be very profitable due to its affordability and profit potential.
In the world of gambling, players generally lose over the long term, which means the sportsbook has a built-in revenue stream.
The goal is to get as many players betting as possible. Taking more action will almost always lead to more profit. Nonetheless, independent bookies can run a successful operation with limited players. Many agents have just a dozen or so players and still make five figures every week.
Back in the day, bookmaking took place in smokey backrooms of pizza parlors, social clubs, or private residences. Pretty soon, bookies realized that bringing in partners as agents was a great way to expand their reach and add a little coin to their pockets.
The action was taken in person or on the phone and was all handwritten and usually put into notebooks. Needless to say, that process was very inefficient, and getting updated news and lines was very difficult.
At this point, these smaller agents decided to seek out the big bookmakers and strike a deal. The agent would have access to use the offshores' call center and financing. All the agents would need to handle were collections and payments.
This original model had several problems for agents. The biggest issue was the payment model. Sportsbooks would take a flat fee, no matter how many players the agent had. This made such services very expensive and mostly just served to make the sportsbook more money while the agent picked up the scraps.
Then in 1997, PayPerHead began to offer a model that we now know today as PPH. The agents were only required to pay fees per player to access odds, call centers, and ultimately, white-label websites.
The advent of the internet opened the floodgates, and thousands of PayPerHead® agents opened their own white-label sportsbooks in the first few years.
Today, more than 20 years later, we have advanced computer software to help manage our agent's sportsbooks, a team of IT professionals, and decades of experience to rely on.
The days of runners, money handoffs and stacks of notebooks are long gone thanks to all the tools a PayPerHead agent has in 2020.
All of our agents enjoy the most exceptional online bookmaking experience the industry has to offer.
This includes features such as odds for thousands of events daily, access to an online casino, and PayPerHead’s proprietary TruLive wagering platform.
What features should bookies look for in a pay per head provider?
Security should always be a top concern for per head bookie agents. Nobody wants to be worried about having their sensitive information being leaked into the interweb, so find a provider that takes every precaution to secure your data.
PayPerHead offers the latest technology and guarantees that your data is always 100% secure. This assurance extends to your players so they can sleep easy knowing their bankroll is safe and sound.
Easy Pay and Collect
Quick and easy transactions are another need for any pay per head agent. At PayPerHead, we utilize our proprietary Agent Payment Solution (APS®) system to keep everyone paid promptly.
Whether online or via your mobile device, settling up has never been easier with our state of the art software.
Not only does today’s bookmaker need to be able to offer hundreds of sports daily, but a successful bookie will also have a functioning online casino.
At PayPerHead, we offer access to our digital casino software that provides your players endless hours of betting pleasure. If they are interested in slots, table games, or live dealers, we have your bases covered.
Live Dealer Casino
For some players, there’s nothing like playing with a dealer who knows the game of their choice. Offering a live casino to your players could be the one thing that gets them playing more. Payouts work the same way as the digital casino, which means your players never have to wait for their winnings to show up in their accounts and you never have to wait for your profits.
At PayPerHead, we offer blackjack, roulette, and baccarat with Live Dealer action.
Another valuable revenue stream we offer is our full racebook. With so many tracks to follow worldwide, high tech software is a necessity. Our racebook has events going on in Dubai, Australia, Japan, the UK, and other countries. This gives your players options to wager on at any hour of the day or night. We also offer specials on the major graded events like the Kentucky Derby and Breeders Cup.
A quality pay per head service is one that offers an array of features that will help you maximize your revenue.
To see all that PayPerHead has to offer, check out a full rundown of features here and see why PayPerHead is an industry leader in the per head market.
Now that most major sports around the world have been suspended, having a quality pay per head service provider has become even more critical.
While many outlets don't provide an alternative for their agents, PayPerHead® has plenty.
The aforementioned live casino and racebook provide plenty of options, but that is just the tip of the iceberg.
The team at PayPerHead has been working diligently to ensure our sportsbook is full of alternative events, as well. We have been adding odds for things such as eSports, simulated sports, iRacing, table tennis, competitive eating, and political betting odds.
We continue to work tirelessly to keep our odds board full, so be sure to check back daily for new and exciting events.
Plentiful wagering action aside, we have another massive reason for agents to choose us as their provider.
That is right. During this time of crisis, PayPerHead is offering services free of charge until major sports return to the United States. Free service includes action in the sportsbook, racebook, and digital casino.
PayPerHead offers a Live Dealer casino at a minimal fee.
If your pay per head provider isn't offering what you need to keep your sportsbook in the black, then it might be time to consider making a change to PayPerHead®.
Head on over to our sign up page to get started or talk to an account manager at 800-605-4767 with any questions you may have.