How Does a Sportsbook Make Money?


A sportsbook is a place where bettors can make wagers on different sporting events. The most common bets are on teams to win a game or the total score of a game. However, sportsbooks also accept what are called prop bets or proposition bets, which are wagers on individual player or event performance.

The main way that a sportsbook makes money is by charging a fee known as juice or vig. This fee is charged to bettors who place a winning bet and covers the risk of losing bets. It is usually a percentage of the total amount of the bet, but can vary between different sportsbooks and types of bets.

Another major way that sportsbooks make money is by offering bonuses and first bets to attract new customers. In addition, some sportsbooks offer deposit matches and free bets to current players as a way to reward them for their loyalty. These bonuses can add up to significant amounts of money, but should be used carefully.

Many traditional online sportsbooks are pay-per-head (PPH) services that charge a flat monthly fee to keep the site up and running. This method does not allow a bookie to scale up or down during busy periods. This means that a smaller bookie may have to pay $500 per month even when they are only making a tiny profit, and that large events can quickly drain a bookie’s bankroll. Using PPH software can help solve this problem, as you only pay for each active player that you take bets on.