How are locals profiting

[razorbackpicks]

How do locals make money when using these CR services? I've always wondered how it works exactly.

Do they get a cut wagered? % lost? The juice? How does that work if anyone cares to shed a little light on it. I know they have to pay the book issuing the lines but is it by wager, by player, by week?

Just a slow Monday and figured I would inquire here. Before anyone tries to ask or send me a PM, I'm not interested in becoming one!

 

[pocketrockets]

How do locals make money when using these CR services? I've always wondered how it works exactly.

Do they get a cut wagered? % lost? The juice? How does that work if anyone cares to shed a little light on it. I know they have to pay the book issuing the lines but is it by wager, by player, by week?

Just a slow Monday and figured I would inquire here. Before anyone tries to ask or send me a PM, I'm not interested in becoming one!

It is a per head service... let's say a PPH shop charges $10 per head (per week). Agent has 50 active players so he should pay around $5000 a week for the whole servie. Of course prices vary, and also, the more players and agent brings the better rate per head he can get!

 

[tatehill2000]

500 you mean?

 

[razorbackpicks]

Lets say your local is using a CR service and his fee is $ 10.00 per week per log in. The CR is setting the lines and juice, he is simply a collector at this point.

I am questioning his "cut". Also larger ones will have "associates" collecting and can start a good "coverage area". So there has to be a "commission" rate somewhere.

-X% per wager
-X% per loss
-XX% of juice

Something more than just the local praying his clients lose more than they win when using the offshore setups.

 

[pocketrockets]

500 you mean?

+1

yep, typed an extra zero... I'm greedy like that

 

[pocketrockets]

Lets say your local is using a CR service and his fee is $ 10.00 per week per log in. The CR is setting the lines and juice, he is simply a collector at this point.

I am questioning his "cut". Also larger ones will have "associates" collecting and can start a good "coverage area". So there has to be a "commission" rate somewhere.

-X% per wager
-X% per loss
-XX% of juice

Something more than just the local praying his clients lose more than they win when using the offshore setups.

It depends, agents for the most part collect all of their customer losses and they just pay the fee to the CR PPH for the phone and lines service. However there are cases where agents make a deal to split it 50/50 or 70/30 or even 75/25 with the agent usually getting the bigger cut.

 

[PeePee]

Per player per wk

 

[razorbackpicks]

Per player per wk

So the local's agent really isn't effected by W's and L's?

 

[PatsFan1283]

So the local's agent really isn't effected by W's and L's?

Not usually. Just a flat fee per week.

 

[razorbackpicks]

Not usually. Just a flat fee per week.

So the local's agent gets paid the same for a $50 bettor and a $1000 bettor? That's where I really hit a brick wall. the business man in me wants to say it's a percentage cut of wagered or losses.

 

[pocketrockets]

So the local's agent really isn't effected by W's and L's?

CR PPH shops are never affected by W's and L's UNLESS there is a relationship of some kind and they decide on a shared risk on the package like I mentioned above. That's why PPH owners cannot be prosecuted but Post-Up shop owners (like 5D or BMKR) can.

 

[razorbackpicks]

CR PPH shops are never affected by W's and L's UNLESS there is a relationship of some kind and they decide on a shared risk on the package like I mentioned above. That's why PPH owners cannot be prosecuted but Post-Up shop owners (like 5D or BMKR) can.

Ok so this makes some sense. So in these CR PPH instances who is fronting the money? The group of agents or the CR shop? I was always under the impression the locals were and just using the CR for basically a customer service/wagering service.

 

[PatsFan1283]

So the local's agent gets paid the same for a $50 bettor and a $1000 bettor? That's where I really hit a brick wall. the business man in me wants to say it's a percentage cut of wagered or losses.

The situation varies.

If they trust the bookie and it's a good relationship then they might take a piece of a whale. Especially if he is betting more -EV stuff like teasers/parlays/bad futures, etc

 

[pocketrockets]

Ok so this makes some sense. So in these CR PPH instances who is fronting the money? The group of agents or the CR shop? I was always under the impression the locals were and just using the CR for basically a customer service/wagering service.

Fronting the money for the PPH operation? The CR PPH shop owners own everything, servers, building, website, everything. 98% of agents are customers of the PPH, some are associates and some may have a piece of the cake of the whole PPH operation but these cases are rare. That's why agents can pack up and leave anytime to another PPH option, they are not bonded to the PPH shop.

 

[pocketrockets]

The situation varies.

If they trust the bookie and it's a good relationship then they might take a piece of a whale. Especially if he is betting more -EV stuff like teasers/parlays/bad futures, etc

+1. Nothing is written in stone boys.

 

[razorbackpicks]

Fronting the money for the PPH operation? The CR PPH shop owners own everything, servers, building, website, everything. 98% of agents are customers of the PPH, some are associates and some may have a piece of the cake of the whole PPH operation but these cases are rare. That's why agents can pack up and leave anytime to another PPH option, they are not bonded to the PPH shop.

This is why I am asking. If that is the case who is holding the bank roll, the CR service company or the agent. Is the agent literally just a service person setting the bettor up with the CR sports book? Or does the CR sports book require the agent to carry a bankroll. Someone is fronting the cash and if its the CR's then there is a commission, if it's the agent then he's most likely only making his money on losses, which means a bettor that is crushing him is actually hurting him but it was stated earlier that usually isn't the case. Where in lies my dilemma in understanding the process.

 

[PatsFan1283]

This is why I am asking. If that is the case who is holding the bank roll, the CR service company or the agent. Is the agent literally just a service person setting the bettor up with the CR sports book? Or does the CR sports book require the agent to carry a bankroll. Someone is fronting the cash and if its the CR's then there is a commission, if it's the agent then he's most likely only making his money on losses, which means a bettor that is crushing him is actually hurting him but it was stated earlier that usually isn't the case. Where in lies my dilemma in understanding the process.

It could be either/or.

Tough to really answer it anymore than that.

 

[pocketrockets]

This is why I am asking. If that is the case who is holding the bank roll, the CR service company or the agent. Is the agent literally just a service person setting the bettor up with the CR sports book? Or does the CR sports book require the agent to carry a bankroll. Someone is fronting the cash and if its the CR's then there is a commission, if it's the agent then he's most likely only making his money on losses, which means a bettor that is crushing him is actually hurting him but it was stated earlier that usually isn't the case. Where in lies my dilemma in understanding the process.

The bankroll? Let's not forget PPH works on credit to be settled once a week usually Mondays (agents may have diff agreements with players but figures close Mondays on all PPH shops).

The bold statement is backwards... PPH is the service that an agent rents in order to supply the service to his players. Nobody is fronting any cash actually, agents pay after the week is over depending on how many players on their package actually had action that week.

Agent with 50 players, all play during NFL week 1, he pays $500 to the PPH on week 2. Agent collects and pays the players as well.
Agent with 50 players, only 25 play during slow season, he pays $250 to the PPH. Still needs to settle with players.

If there is a "commision" involved for the PPH... let's say 50/50 they both settle with players 50/50 and the agent may not have to pay ANYTHING to the PPH in this case or a very reduced fee cause he is giving 50% of his package to the PPH, but like I said this is rare and reserved for agents that have long trust relationships with a PPH owner.

 

[razorbackpicks]

The bankroll? Let's not forget PPH works on credit to be settled once a week usually Mondays (agents may have diff agreements with players but figures close Mondays on all PPH shops).

The bold statement is backwards... PPH is the service that an agent rents in order to supply the service to his players. Nobody is fronting any cash actually, agents pay after the week is over depending on how many players on their package actually had action that week.

Agent with 50 players, all play during NFL week 1, he pays $500 to the PPH on week 2. Agent collects and pays the players as well.
Agent with 50 players, only 25 play during slow season, he pays $250 to the PPH. Still needs to settle with players.

If there is a "commision" involved for the PPH... let's say 50/50 they both settle with players 50/50 and the agent may not have to pay ANYTHING to the PPH in this case or a very reduced fee cause he is giving 50% of his package to the PPH, but like I said this is rare and reserved for agents that have long trust relationships with a PPH owner.

While it's a credit system, someone is still "floating" here. They aren't going to let a guy come in and swing a 10k bet usually but what happens if a guy is down a couple G's and gets in a car wreck, this is where I am saying "bankrolling".

Thanks again for all the time answering my petty question on this process guys. I'm still having a hard time believing someone is only making $15 a week off a bettor that might break even over a season.

 

[pocketrockets]

While it's a credit system, someone is still "floating" here. They aren't going to let a guy come in and swing a 10k bet usually but what happens if a guy is down a couple G's and gets in a car wreck, this is where I am saying "bankrolling".

Thanks again for all the time answering my petty question on this process guys. I'm still having a hard time believing someone is only making $15 a week off a bettor that might break even over a season.

Well that depends entirely on the agents relationship with the players. Agents don't give huge credit right away, unless player is recommended by another player with a INTACT rep and so on... if not, agent will increase limits to a new player week by week or month by month once they build a trustworthy relationship. PPH shops dont meddle in that process UNLESS they share a risk with the agent and that's 1% of the cases usually.

BOLD. No problem buddy. But then like I said, agents usually have 20+ players so it's $200 per week, $800 per month just for one agent. PPH shops, medium sized ones usually have 20-30 small agents, and 4-5 whale agents that have sub agents as well totalling 100+ players. When you sum it up a PPH with 1000+ players at $10 per head can make 10k per week or 40k per month.