Learn how to use your PPH layoff account.
– A PPH layoff account can protect bookies from big losses.
– Bookies can use a PPH layoff account for investment purposes.
How to Use Your PPH Layoff Account
The layoff account is one of the most crucial weapons in the pay per head bookie’s toolbox. Without it, your sportsbook can disappear after one major upset.
The main motivation for bookmakers to use bookie software is to gain access to resources. Using pay per head software solutions, bookmakers may run their sportsbooks more profitably and similarly to how Las Vegas casinos operate.
The PPH layoff account is essential to ensuring you stay in the black while also adding to the fun of being a bookmaker. While technologies like the APS (Agent Payment Solutions), Immediate Action Ticker, adjustable limitations, and SMS or email notifications are essential, so is the layoff account.
In this post, we describe the PPH layoff account and why it is so important.
Protects From Huge Losses
The layoff account enables bookies to safeguard their profits. It does this by giving agents tools to reduce risk. Agents can use their bookie knowledge to reduce risk.
All businesses are constantly trying to reduce risk. To safeguard earnings, a business must manage the risks it takes. Otherwise, they can go out of business pretty quickly. The same is true of a sportsbook. You reduce risk by using a layoff account, which safeguards gains.
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PPH Layoff Account Example – The Super Bowl
The Super Bowl is still the world’s most significant single sporting event. It will continue to be since both the NFL and Vegas sportsbooks are dependent on one other.
After the 2020 NFL season, the Kansas City Chiefs and San Francisco 49ers squared off in the 2020 Super Bowl. Yet, it wasn’t your typical Vince Lombardi Trophy battle. It involved more than just an NFC team playing an AFC team.
The 49ers had beaten many of the NFL’s best quarterbacks. They did so with the league’s best defense. The Niners attacked opposing offenses and, as a result, found themselves playing for a Lombardi Trophy.
On the other end, the Kansas City Chiefs had QB Patrick Mahomes and a video game-like offense. Mahomes won the NFL MVP in 2019 and the Chiefs offense seemed almost unstoppable.
The pre-game hype was fierce. The Chiefs opened as a 1.5-point favorite. Early betting pushed the line to KC -2.5. Bettors started pouring money on the 49ers. As a result, the line shifted to the Chiefs +1. By kickoff, it was back to KC -1.5.
These line movements are one reason why bookies should have a layoff account.
The Layoff Account
So, here’s how the layoff account works. You take a $1,000 bet on the Super Bowl. Since this is a pretty hefty bet, the bettor requests the best possible line. As a PPH bookie, you can give it to him. Vegas shows a consensus of KC -2.5. Your high roller wants KC -1.5.
You give him the Chiefs -1.5 and take the $1,000 bet. You go to your layoff account and take $900 of the $1000 and bet it on the Chiefs. It doesn’t matter who wins. If the Chiefs win, you can take your winnings from the layoff account and pay your high roller. If the Chiefs lose, you keep the $100 from the original bet.
When to Use Your PPH Layoff Account
It sounds pretty easy. You start a great online sportsbook. Then, you use your layoff account to place bets and use the winnings to pay out to your winners. Like anything, it isn’t all that simple.
You should not use your layoff account to make up for profits that you lost because you didn’t use the layoff account on a previous bet. Never ever chase your losses. You should know this by now as it is one of the cardinal sins of losing bettors. Do not use a layoff account to chase your losses.
Leaving Money on the Table
Most PPH bookies are gamblers themselves. They understand sports betting and know how to handicap games. There are times when, as a bookie, we may leave money on the table. This is not using your PPH layoff account to its fullest.
Let’s say you take in $200 on a game. It’s all the action you got. Your take is $20 no matter what. You can take that $20 and use your layoff account as an investment. However, what if you took a chance on the full $200? Big-time investors do it all the time with something called financial derivatives.
You handicap the game yourself and place a $200 bet on either side. The worst case scenario sees you lose the $200, but you could stand to make a lot more than if you only bet with the original $20.
The point is that if you can stake more on a solid bet, use your layoff account to take advantage of it.