How do bookies make money?
A bookie takes bets from the public on a particular game. I'm going to use football as an example. I'll use New England Patriots and Seattle Seahawks. Seeing that this game is not really equal a bookie uses whats called a spread to even the game up and make both sides an enticing choice to the public. Say the Patriots are the favorites with a spread of -10. This means that if you bet on the Patriots wining they have to win by more than 10 points. If you pick Seattle they either have to win or not lose by more than points. Say we bet $100 on New England. New England wins the game 31-10. We win $100. Now say the score is New England wins27-24. We lose the bet because the Patriots did not win by more than 10 points. A bookie makes his money by charging "juice" which is a 10% fee to the losers. So if ten people bet $100 on a game 5 win the bet and 5 lose, the bookie pays the winners $500(5 people x $100=$500). He then collects $550 from the losers. (5 people x $100=$500 x 10%=$550.) He pockets the $50 dollars and uses the $500 to pay the winners.