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Innovation In Bookmaking

2005-06-24T13:18:00.002-07:00

Q & A with
Dalton Wagner, Founder V.O. Group, S.A.

As Founder and Proprietor of V.O. Group, S.A., Dalton Wagner has the reputation of ferreting out new markets and attacking while other companies sit on their hindquarters and watch. One market that has always eluded offshore bookmakers is the ‘guy who likes dealing with his credit bookmaker’. Typically this market has been untouchable for the offshore bookmaker, but NOT for Dalton and V.O. Group, S.A. We had an opportunity to catch up with Dalton Wagner on his last visit to Panama.

Vegas Offshore: Tell us about this new product that you are calling your Price Per Head Agency Relationship.
Wagner: As you know, one market that a post-up sportsbook has historically been unable to attack is the huge market of bettors that have been betting with their local guy for years. The reason this market exists is the personal relationship that an onshore bookie has with his clients. Sportsbooks have attempted to educate the player and lure him away from the local bookie, however we have taken another tact. We have partnered with local bookies around the world to make their offering better and more valuable.

Vegas Offshore: So instead of attacking the local guy, you actually approach him with your offer?
Wagner: Exactly. The fact is that the relationship is the last thread holding clients to a local guy. Yes, there is the fact that the local guy extends credit, but with bonuses and promotions we can overcome that offering. The key is the relationship.

Vegas Offshore: I’m confused, please explain.
Wagner: As you know, the onshore bookmaking market has lost steam to the offshore providers like V.O. Group, S.A. The reason is that the offerings that I can provide are far superior to those that any onshore bookmaker can offer. The PPH concept is based on allowing the onshore bookmaker to provide his clients my offerings on a purely anonymous basis via an online automated tool. Rather, by signing up with my PPH service, an onshore bookmaker can compete with all offshore sportsbooks on equal footing offering 24-hour wagering, 365 days a year. All the bookmaker does is use an online system to assign PINs and PASSWORDs and pay me a small fee per week for the service.

Vegas Offshore: Wait a minute. So, this means that a small time operator in Cleveland, Ohio can offer all the same things that V.O. Group, S.A. does without making the multi-million dollar investment?
Wagner: Now your catching on. For as little as $25 per head per week, a guy in Ohio can compete with the biggest sportsbooks in the world. And, better yet, never answer another wagering phone call again.

Vegas Offshore: OK, I get it. They use your automated tool to drive their clients to your software online, and they simply pick up the figures at the end of the week.
Wagner: Exactly correct with one exception. Their clients can bet on the phone via our call center staffed with 250 people OR bet online. Again, they have access to all of the offerings V.O. Group, S.A. provides including call center access, client services and technical support.

Vegas Offshore: Is the PPH product only based on sports wagering?
Wagner: Very good question. The answer is no. We actually have the ability to offer clients two (2) casino products including blackjack, baccarat, slots, 3 card poker, roulette, etc. And, clients may also bet on horses at over 350 tracks worldwide.

Vegas Offshore: Wow! That truly is incredible. So, a bookie that has one client can compete with the likes of MVPsportsbook.com on equal footing?
Wagner: Exactly correct. But, there are two keys to the success of the product launch. The first is being able to compete head to head with the biggest sportsbooks in the world. But, arguably the most important factor is that since the onshore bookie no longer has to answer phones or track plays, he can spend all of his time picking up new clients, NOT writing bets.

Vegas Offshore: I remember that in a prior interview you had stated that the key is not winning, but finding more losers.
Wagner: An embarrassing quote, but true. Amateur bookmakers think that the key is to beat the clients you have. That is a huge mistake. The key to getting rich as a bookmaker is finding a new client every single day of the year. The numbers take care of themselves, the key is to get more and more people playing. That is the TRUE BEAUTY of the PPH software and agency relationship.

Vegas Offshore: Do you have any success stories to tell?
Wagner: I have many, but will tell you one that emphasizes what the PPH program can do. I have a bookmaker that has been working out of San Antonio, Texas for 10 years. The guy has historically made $200,000 a year from his 25 or 30 players. He was introduced to our product in July 2004, and today he is writing over 185 clients. The ability to outsource answering calls and writing tickets to us has allowed him to grow his business 600% and his revenue over 1000%.

Vegas Offshore: Why did his revenue grow more than his business? Is it because your lines are sharper than his?
Wagner: There you go again. That is the obvious mistake that everyone makes. Again, don’t worry about beating the clients. Worry about getting more clients to play. But, to answer your question directly, the ability for his clients to play in the casino, play 24 hours a day, play games/halves/quarters, props, etc. is where the extra revenue comes from. Our lines might be sharper, but the advantage is more clients betting more often.

Vegas Offshore: How many bookmakers do you currently work with?
Wagner: We are writing business for over 250 bookmakers now. Some represent groups as small as 2 or 3; and others represent groups as large as 500. Again, remember the key is finding as many clients as possible. If you get to where you are writing 15 clients or more, it is almost impossible to lose for an extended period of time.

Vegas Offshore: So how does a bookmaker learn more about this?
Wagner: Simply go to any of the V.O. Group, S.A. sites to learn more. I suggest starting at www.BettorsNet.com or calling 1-877-512-1001 or emailing agents@bettorsnet.com to get more information.

State of the Offshore Gaming Industry

2005-06-24T13:18:00.001-07:00

Q & A with
Dalton Wagner, Founder V.O. Group, S.A.

As Founder and Proprietor of V.O. Group, S.A., Dalton Wagner has the reputation of making one-dollar work like three in online marketing. With formidable competition, Mr. Wagner founded V.O. Group, S.A. in 1998 and has quickly risen to be one of the largest offshore operators in the world with over 50,000 active clients. We had an opportunity to catch up with Dalton Wagner on his last visit to Antigua.

Vegas Offshore: This year has been interesting for V.O. Group, S.A. and the offshore industry as a whole (advertising changes, etc.). How do you feel about the industry at the current time?
Wagner: I feel the industry is as strong as it has ever been. We are still finding that our advertising is bringing us new clients at an ever-growing rate. Some competitors are complaining that the crimp on advertising is affecting the industry, but we are not seeing this trend. Consolidation within the industry has begun, and I am sure you will continue to see smaller competitors gobbled up, and medium to larger companies merging. The weaker will go by the wayside.

Vegas Offshore: What about the rumors of V.O. Group, S.A. being bought?
Wagner: I am glad you used the term 'rumors'. The fact is that in July 2004 three suitors approached V.O. Group, S.A. because of our record-breaking profit year. In two of the cases we did see 'value' in a merger/relationship. However, at the end of the day, we could not come to terms that were agreeable on both sides. At this time V.O. Group, S.A. stands independent. And, we are happy being independent, profitable and growing.

Vegas Offshore: It is rumored that Bet On Sports (PLC; BSS.L) was one of the suitors. Is that true?
Wagner: There were three suitors that approached V.O. Group, S.A. And, in all cases confidentiality agreements were signed. For this reason, I cannot confirm or deny who any of the potential suitors were. What I can tell you is that one was a major sportsbook player, one was a major casino player and two were PLCs. I doubt that helps.

Vegas Offshore: Well, if Bet On Sports was involved, I bet you are happy you weren't involved in their November 24, 2004 stock debacle.
Wagner: The Bet On Sports stock debacle was an over-reaction by the market in my opinion. In one day you saw their stock drop 50% in value. And, the reason was poor performance in a very short period. If you looked at the other publicly held offshore gaming companies, you saw the same thing, just not as drastic as with BSS.L. Simply put, I know the founder of Bet On Sports, I know the management of Bet On Sports, I know the staff at Bet On Sports and I would not hesitate to invest in Bet On Sports. They were, and still are, undervalued in my opinion. They are a great competitor and a great company. I wish I had some of their stock at the new adjusted price. I just don't see how you can lose.

Vegas Offshore: It is rare to hear the 'competition' speaking so highly of a major competitor. Why would you do so?
Wagner: Simple. Bet On Sports is a great company. And, I am sure they would tell you the same about V.O. Group, S.A. The fact is, that there are companies out there that make our industry stronger. And, ones that make it weaker. Bet On Sports and V.O.Group, S.A. strive to make our industry stronger and more legitimate on a daily basis (as do BetCris.com; BoDog.com; etc.). What kind of ambassador for the industry would I be if I downplayed a 'good' competitor like Bet On Sports for my own benefit?

Vegas Offshore: If Bet On Sports did approach you, would you consider a merger?
Wagner: I like being independent. But, simply put, NEVER say NEVER.

Vegas Offshore: What of the rumors that you are looking at Panama as a potential relocation site?
Wagner: Our operation currently has offices in Costa Rica, Antigua and Belize. In Costa Rica we currently have over 400 employees. With employment costs in Costa Rica on the rise, the burden of Caja and the ever-changing political climate, we have looked at several alternative locations. One of the most desirable is/was Panama. However, due to the massive failure of BetPanAm.com and the political debacle involving their past gaming commission, we have decided to stay put for the current time. I think it is very safe to say that our primary location will be Costa Rica for the next 5 years. Pending any crazy licensing or governmental changes.

Vegas Offshore: I have visited your office in Antigua, however had no idea that you employed 400 individuals in Costa Rica. Why do you need such a large staff?
Wagner: Our industry has a reputation for being lazy and getting by on a shoestring budget. Most sportsbooks, casinos, racebooks and poker rooms answer phones when it is convenient and buy computers when the ones they are operating blow-up. Most are simply embarrassing to the legitimate operators. To run an operation like ours, servicing 50,000 bettors, you need lots of space, a 1st rate phone system, fiber and satellite phone and Internet backups, IT professionals, accounting professionals, etc. V.O. Group, S.A. is currently located in 35,000 square feet of space, operating 24-hours a day, 365 days a year, and we are busting at the seems. At the current time, we are negotiating to buy the building next to us for future expansion. I think we will employ 600 people come this same time next year.

Vegas Offshore: I have noticed that you are still branching into other products. How has this strategy worked for V.O. Group, S.A.?
Wagner: In 1998 we started with our sports product. We then branched into the casino product. In 2001 and 2002 we opened several major race books and poker rooms. The fact is that we are profitable in all products. However, our core product, and hub for our advertising, is focused on the sports product. The strategy has worked, but we will not desert our core product. You can look for our re-launch of interactive betting in early 2005 and bingo in mid 2005.

Vegas Offshore: What other changes do you see in 2005 for V.O. Group, S.A.
Wagner: I think you will see V.O. Group, S.A. work more on our Internet interface to make it more gamer-friendly; you will see our company move into land-based gaming; and you will see us acquire two or three smaller competitors. Rather, you will see what you have always seen, expansion.

Vegas Offshore: What other changes do you see in 2005 for the industry as a whole?
Wagner: The strong will get stronger. The weak will get weaker. And, the acquisition race will be on.

Sportsbook Betting - Home Dogs or Home Favorites in the NFL?

2005-06-24T13:18:00.000-07:00

We know that most people like to bet the home team when it comes to the NFL. Is betting the home team profitable though? Let’s take a look at what has happened in the past 20 years when NFL teams are either a home favorite or a home underdog. Here are the winning percentages.

Home Favorites

1983 - 45%

1984 - 46%

1985 - 57%

1986 - 46%

1987 - 43%

1988 - 49%

1989 - 46%

1990 - 56%

1991 - 53%

1992 - 50%

1993 - 45%

1994 - 46%

1995 - 47%

1996 - 54%

1997 - 45%

1998 - 57%

1999 - 47%

2000 - 46%

2001 - 49%

2002 - 47%

2003 - 51%

Looking at the numbers shows us that betting home favorites is a losing proposition. Betting strictly road dogs would have produced a small profit over the last 21 years. Will betting home dogs instead of home favorites do any better? Let’s see.

Home Dogs

1983 - 52%

1984 - 45%

1985 - 55%

1986 - 51%

1987 - 54%

1988 - 51%

1989 - 50%

1990 - 50%

1991 - 55%

1992 - 53%

1993 - 54%

1994 - 52%

1995 - 53%

1996 - 62%

1997 - 51%

1998 - 54%

1999 - 57%

2000 - 51%

2001 - 54%

2002 - 59%

2003 - 52%

Notice anything about those numbers? Only one time in 21 years did home dogs in the NFL finish with a losing record. If we look at the statistics we can already see that betting the dogs is the way to go. Home dogs produced a profit nearly every season, while road dogs had similar numbers. When you are looking at betting the NFL this season, keep these numbers in mind and always look to take the underdog first.

Sportsbook Parlay Betting Odds

2005-06-24T13:17:00.002-07:00

For instance, Nevada sports books held 4.4 percent in football last fiscal year, according to state gaming control figures.

But the win percentage on parlay cards was 23.5 percent.

When you're making a 'straight' wager involving the point spread, the bookie's juice is 11-10.

That's not the case with parlay cards. The juice, or vigorish, gets higher with each team added.

For instance, a two-team parlay normally pays 13-5. The real odds, if you calculate the normal five-percent juice, is 3-1.

Hit a three-team parlay and you'll get paid 5-1. However, the true odds are 8-1. The books normally pay 10-1 on a four-team parlay, yet the real odds are 15-1.

It gets worse. True odds on a five-team bet would be around 31-1. The books pay 20-1.

When you get up to a six-team wager, you collect 40-1 -- if by some miracle you should hit. The true payoff, however, is around 63-1.

"Once you get over three teams, the juice just escalates," Sims said.

Loan sharks are more generous with their juice.

"If you think you can overcome 30-40 percent juice you have to think you're the smartest person in the world," said handicapper Russ Culver, formerly the sportsbook manager at The Mirage.

Culver has lived in Las Vegas more than 20 years and said he's never met a respected handicapper who played a football parlay card.

The public is enamored with them, though. They love the thought of risking a toothpick to win a lumberyard. The most popular, Sims said, are four and five-team parlays.

Unlike other cities, a frequent topic around office water coolers in Las Vegas on Monday morning is bad beat stories about how you just missed hitting a five-team parlay.

Parlay cards are only popular in football, though.

"I have parlay cards for baseball, basketball and special events, but they're nothing compared to football," Sims said.

While nearly all the parlay card action comes from tourists and recreational bettors, once in a while a professional gambler might take a shot.

That's because parlay cards are printed early in the week so they can be distributed in plenty of time before the games.

If a sharp gambler believes he can get a better number on the parlay card than what's on the betting board, he might play a two-team card.

Changing weather conditions and injuries also can be a factor. A bettor might be influenced to play a parlay card if rain and wind is forecast for a game and the 'over/under' total is different on the parlay card.

However, hotels have been known to scratch certain games off a parlay card if it turns into an extreme situation.

"For the most part they (professional bettors) don't touch parlay cards," Sims said. "The juice is too big."

The bottom line with playing parlay cards?

If you're going to play them, and chances are you will, consider it strictly as fun and entertainment. Realistically, you're not going to make any money. Picking one game correctly is hard enough.

Sportsbook Betting - College Football Money Management

2005-06-24T13:17:00.001-07:00

Money management is extremely important when betting any sport, but it is critical when it comes to betting college football. There is a large amount of games to choose from every Saturday and it is very easy to lose control when betting that many games. Let’s take a look at some things that can help you when deciding upon your money management strategy for college football.

Your first decision when dealing with money management for college football is deciding the size of your bets. It is often suggested that your bet size should be about 5% of your bankroll. That is a reasonable number but a safer number is 2%. The reason I say that is because there are so many games on a football Saturday. It is not unheard of to play 10 or 15 games for a busy college football Saturday. A bad day at 5% per play could lose you half of your bankroll. That is just unacceptable. If you are looking at having the size of your play at 5% or higher then the number of your plays should be lower. Perhaps 3-5 for the day is better. The next decision you want to make is whether or not to adjust the size of your play. Very often with so many games to choose from you will like some plays better than others. Do you want to give more weight to your stronger plays and bet more money on them, or do you want to keep all your plays at the same amount? I would recommend adjusting the size of your wagers based upon the strength of the play. If your normal bet size were 5% for a regular play, then increasing it to 10% for a strong play would be something you might want to do. Keep in mind that I am more in favor of 2% and 4% instead, just because it is safer to your overall bankroll. I don’t recommend going higher than double your original bet size even if you really like the play. There are no guarantees in life and double your normal unit size is probably high enough.

When dealing with a busy college football Saturday it is also worth considering dividing the day up into sections. There are three main groups of games and you could divide your day into those three parts. The early games can be your first section, the midday games your second section, and the night games your third section. This gives you three different opportunities to make money. If you are struggling early you could choose to double up late, if you are winning early you could cut back a little on the late plays. Dividing the day into sections gives you so many more options to increase your winnings for the day. It is all part of college football money management.

Remember that getting ready for the college football season includes more than just doing your handicapping. Don’t forget that planning out your money management strategy is just as important.

Belmont Stakes Betting Links

2005-06-24T13:17:00.000-07:00