How would a book get in financial trouble?

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I often see threads asking "what book is in trouble?" or "what book will shut down after football"

I also see a lot of post saying 1% of gamblers win, so the question is do the 1% of winners win more than the 99% of losers lose?

not enough action to cover overhead?
 

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Overhead, booking too many sharps, hot run by players, owner spending like a drunken sailor, lay downs. Lot of ways for a book to get into trouble.
 

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Books are no different then good gamblers, playing a game they have an edge. Still doesnt guarantee they lose from time to time. I assume the variance can kill anything, I know it kills me.

Bottom line it boils down to being underfunded and how much pct of that is put into risk, IMO.
 

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Undercapitalization is the main cause of failure of most new businesses, whether legal or illegal.
 

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How does a casino in Vegas lose ?

seems similar

The properties are extremely expensive, lots of electricity and utilities, employee salaries. . .

Online cuts these costs way down. And increases competition and allows anyone without enough funds to open up shop. . .

Just because the player always loses doesn't mean the house can always survive. . .
 

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that's what I mean....if a casino can fail, so can a book.

you need players, harder to get them these days. People seem to stick with the A books, for good reason, and there are now several highly rated books with -105. Hard to open a -110 store with that competition....unless credit.
 

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All sportsbooks, Vegas, Offshore or even the average local earn a percentage of the total amount of action (hold) they book. When overhead exceeds the amount of that percentage of the book's hold they begin to lose money. Remember paying winners should be considered part of a books total overhead.

Lose money long enough, regardless of the reason and sooner or later a book will go run out of bankroll and therefore find themselves unable to operate.

Judge Wapner above hit on some of the principal reasons a book can cause their overhead to exceed their win percentage amount and go belly up..

Casinos are somewhat different in that there is substantially less of a chance of a bad run when every game has it's own built in house win percentage. Unless the casino is getting cheated somehow it almost has to make money if there is sufficient volume to create a hold percentage that will cover overhead and still leave a net profit. The trick to winning money with a casino is volume and top notch game secruity.

Bookmaking sportsbettors as a rule is almost always a money maker when done correctly but can fall victim to a bad month or even year if lets for example say an inordinate majority of favorites and overs hit during a particular football season, even more dangerous are games that fall.

There was a period in the early 90s before bookmakers made adjustments that the number three (especially in the NFL) became very risky for the house. Multiple sharp players hitting middles on the key numbers of 3,6 and 7 will put a hurt on a book in a hurry. Volume is important to a sportsbook but more important is the person who is responsible for what numbers they use day in and day out - aka the head lines manager.


wil.
 
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Advertising using a black guy and a white girl measuring his pecker will put you under everytime.
 

NES

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Because there are plenty of crappy sportsbooks that are run by cokeheads, whore mongers, and degenerate gamblers who blow the bankroll on coke, whores, and stupid bets right before the players go on a short winning streak as they do from time to time.
 

Let's get down to brass tacks. How much for the ap
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Because crappy sportsbooks are run by cokeheads, whore mongers, and degenerate gamblers who cant leave well enough alone.

The big one is the owners also betting have seen alot of places go under from that. Drugs and drinking would be number 2. Nothing wrong with a little whore mongering nes.
 
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Because there are plenty of crappy sportsbooks that are run by cokeheads, whore mongers, and degenerate gamblers who blow the bankroll on coke, whores, and stupid bets right before the players go on a short winning streak as they do from time to time.


Worked for Mumbles :103631605
 

NES

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Mumbles was a rare exception to the rule, but then again if you ask Jr about his childhood I bet he would say that things werent always so good for the family.
 

NES

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The big one is the owners also betting have seen alot of places go under from that. Drugs and drinking would be number 2. Nothing wrong with a little whore mongering nes.


Whoremongering is fine, but to get where the whores are you have to throw yourself into the war zone.
 
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Mumbles was a rare exception to the rule, but then again if you ask Jr about his childhood I bet he would say that things werent always so good for the family.

I'm sure you are right. But can jr or his Family complain about the Money ?? Or the Lifestyle as which they Lived ??

I'm sure those answers are, NO.

Without Detail's, if you ever seen their home in Fl. You would know the answer as well.

But on another note. Even though he was Very Successful at what he did.
Look where he is Now :ohno:

RIP Bro
 

NES

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I seriously doubt Jr is complaining about anything anymore.
 

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