http://www.therx.com/nm/templates/article.asp?articleid=1228&zoneid=2
It seems whenever people in a posting forum bring up anything about ‘agents,’ the thread either quickly dies or posters make fun of the person asking a valid question.
I believe the reason people don't want to discuss this topic on an open forum is mainly because the government would consider this activity to be illegal. However, since we are dealing in an industry that sometimes relies on agents, it’s only fair to try and educate some people about what they do and why bookmakers may opt to use them.
Although I am certainly not an authority on this topic, I know something about it.
Agents most often work for CREDIT shops and their value can be enormous for the sports book. An agent typically has a number of gamblers he knows well. Since bookmakers are competing for volume, an agent can often tremendously aid a sports book. Not only does the agent refer all of his players there, but he vouches for their ability to pay out when the players lose.
If you've ever heard the term "package" or "sheet" used, it's mentioned when referring to all of the customers an agent brings in and guarantees to the sports book.
In exchange for bringing a "sheet" into a sports book, the agent usually gets a percentage of the players' NET LOSSES from week to week.
Typically, that number will vary anywhere from 25 to 50 percent, with what is called a "make-up."
So if the "package" of players loses $10,000 collectively in a given week - and the agent is on a 50 percent deal - he would be responsible for collecting the money from the players. However, instead of sending $10,000 to the book, he pockets $5,000 for assuming the risk and guaranteeing the money.
However, if his players win as a whole the following week, that amount must be made-up before the agent gets paid again. That's why it's called a 50 percent cut "with a makeup."
What gamblers sometimes forget to ask is whether the agent also guarantees the sports book's money. That way, if the sports book goes bad, the player is still protected by the deal he made with the agent.
Don't ever ASSUME the agent is guaranteeing a bookmaker, because I have seen some instances where they don't.
It is very difficult to find an agent who will vouch for your ability to pay out. Often, it is much harder to get credit with an offshore sports book than it is to get an America Express Gold Card.
For those gamblers who have asked about finding agents, I strongly recommend finding a player who uses one. Quite often, this player will "vouch" for you for a period of time. Then the bookmaker will be able to evaluate what risk, if any, they would assume by taking you on themselves.
Obviously, the faster you pay out when losing and the volume you wager each week is directly related to the amount of credit you my end up receiving.
Though I have only scratched the surface regarding the use of agents in this business, this should educate some posters who have inquired about this topic in the past.
It is important to note that when dealing with agents, the transactions often occur in cash. This fact alone should trigger a red flag before anyone makes a decision to use one.
THE SHRINK
[This message was edited by THE SHRINK on September 07, 2003 at 09:31 PM.]
It seems whenever people in a posting forum bring up anything about ‘agents,’ the thread either quickly dies or posters make fun of the person asking a valid question.
I believe the reason people don't want to discuss this topic on an open forum is mainly because the government would consider this activity to be illegal. However, since we are dealing in an industry that sometimes relies on agents, it’s only fair to try and educate some people about what they do and why bookmakers may opt to use them.
Although I am certainly not an authority on this topic, I know something about it.
Agents most often work for CREDIT shops and their value can be enormous for the sports book. An agent typically has a number of gamblers he knows well. Since bookmakers are competing for volume, an agent can often tremendously aid a sports book. Not only does the agent refer all of his players there, but he vouches for their ability to pay out when the players lose.
If you've ever heard the term "package" or "sheet" used, it's mentioned when referring to all of the customers an agent brings in and guarantees to the sports book.
In exchange for bringing a "sheet" into a sports book, the agent usually gets a percentage of the players' NET LOSSES from week to week.
Typically, that number will vary anywhere from 25 to 50 percent, with what is called a "make-up."
So if the "package" of players loses $10,000 collectively in a given week - and the agent is on a 50 percent deal - he would be responsible for collecting the money from the players. However, instead of sending $10,000 to the book, he pockets $5,000 for assuming the risk and guaranteeing the money.
However, if his players win as a whole the following week, that amount must be made-up before the agent gets paid again. That's why it's called a 50 percent cut "with a makeup."
What gamblers sometimes forget to ask is whether the agent also guarantees the sports book's money. That way, if the sports book goes bad, the player is still protected by the deal he made with the agent.
Don't ever ASSUME the agent is guaranteeing a bookmaker, because I have seen some instances where they don't.
It is very difficult to find an agent who will vouch for your ability to pay out. Often, it is much harder to get credit with an offshore sports book than it is to get an America Express Gold Card.
For those gamblers who have asked about finding agents, I strongly recommend finding a player who uses one. Quite often, this player will "vouch" for you for a period of time. Then the bookmaker will be able to evaluate what risk, if any, they would assume by taking you on themselves.
Obviously, the faster you pay out when losing and the volume you wager each week is directly related to the amount of credit you my end up receiving.
Though I have only scratched the surface regarding the use of agents in this business, this should educate some posters who have inquired about this topic in the past.
It is important to note that when dealing with agents, the transactions often occur in cash. This fact alone should trigger a red flag before anyone makes a decision to use one.
THE SHRINK
[This message was edited by THE SHRINK on September 07, 2003 at 09:31 PM.]
