Why Bookmakers Close or Restrict Accounts
Reasons why bookmakers may restrict or close various betting accounts
#1 – Availability of high margin products like games and casino
Casino and gaming products on the Internet, or fixed odds betting terminals placed in betting shops deliver very high margins, which are guaranteed daily returns. All such products provide plenty of hope and opportunity to people who’re in-charge at bookmaking companies, as their attractiveness and ingenuity directly translates into more revenue.
Why would a bookmaking firm attempt growing its horseracing turnover, and deal with arbitrage bettors and shrewdies, when it can easily score anywhere from 10% to 20% profit on gaming turnover. It doesn’t have to deal with customer service issues, complex decisions, account culling, trading meetings etc. in case of the latter. All it needs to do is pay the IT guys to develop another variation of poker or a roulette game, targeted solely at the recreational punters, and increase its revenue even more.
#2 – Internet has transformed many into disloyal, profit chasers
The way betting exchanges have grown over a period of time and how low margin bookmakers like SBO, Pinnacle Sports etc. are doing booming business, any savvy sports bettor can place wagers without any margin against him. These bettors are basically making money by shopping around and indulging in a bit of trading.
Operating and profiting from a bookmaking business isn’t a bed of roses. It comes at a fairly good cost. There are costs involved, such as customer service costs, IT bills, wage bills etc. You can’t expect a bookmaking business to come even close to breaking even if it doesn’t register a handsome turnover on every sport that it accepts bets on. Using price comparison sites for publishing prices can attract a huge number of arbitrage bettors instantly, so that’s not the ideal path to take.
Simply put, it’s almost impossible for a bookmaker to survive in business if it doesn’t have a big army of loyal sports bettors who are simply interested in betting on whatever is being broadcasted on television. Playing against any Betfair move may only result in company losing lots of money and winning punters having their accounts chopped.
This is the reason why reputed online bookmaking firms like Ladbrokes and Bet365 are focusing all their energies on recreational punting. Taking one glance at their advertisements between the televised matches reveals how they’re courting the younger lot who’re simply interested in watching games with their mates and having a good time. Although every such sports better may think that getting 6.00 odds on Wayne Rooney scoring the next goal is an attractive price on his £ 30 bet, the same may be offered at 9.00 on Betfair. But, the guy’s too busy enjoying with his mates and hasn’t even heard of Betfair! It’s exactly these type of multisport betting and high profit punters that bookmakers love.
Any bookmaker would love £ 20,000 at 6.00 on Wayne Rooney scoring the next goal, being aware that the actual price is much higher. It’s punters like these that the bookmaking firms are after. If at all bookmakers like Bet365 can tap into this market, why would they feel the need of playing warm? So, they don’t!
#3 - Accountants are aggressive on traders
Before betting exchanges like Betfair came into existence, bookmakers as well as their teams of traders didn’t have any general market guide they could refer to. They’d simply price up every football match or horserace using their knowledge. All the bookmakers had inside access to industry experts, they would normally copy out odds from Sporting Life, making minor adjustments here and there. Although this model served as a good framework, it wasn’t entirely reliable.
Once the prices were publicised, and markets were felt, traders came face-to-face with their bettors. The hot ones served as the ideal guide, and markers got sculpted to stay with the early bets. Bookmakers would then move the prices pretty often and dramatically too.
Traders would demand info related to winning accounts, during weekly meetings, as they serve as vital guides to the markets. Sometimes, the bet sizes were limited if any player started winning too much. However, any such decisions were made after discussions with the bettor and after settling with some acceptable terms.
However, in the modern times, it’s the numbers men who are in complete charge of the affairs. A single arbitrage bet, a winning bet or a bet which beats the price is good enough to have one’s account instantly closed. It’s all about short-term view of the people who are paid hefty salaries to take such decisions.
#4 - Sports bettors haven’t had it so good
One of the other reasons why bookmaking companies are aggressive on closing or restricting accounts is because there’s this rapidly growing breed of sports punters which is very vocal about its approach. Rather, these bettors make their living from sports betting activities. Furthermore, there is immense competition between bookmakers, and hence the value available to these punters are sometimes unbelievable.
However, the modern-day punter needs to understand that he can’t survive in this industry if he doesn’t adapt and accept the fact that account closures and factoring is a grim reality of the present-day sports betting industry. It’s pointless to continuously moan about it.
Last but not the least, you must understand that bookmakers are entirely in it for their own benefit. Once you realise that and educate yourself about the exact punter type that bookmakers are after, you can make adjustments and find your way around it!