How the Sportsbook Review rates Sportsbooks

(SBR) provides up-to-date research, reviews and ratings of online sportsbooks. All of this research is used to compile the Recommended List (which represents the elite, top 1% of all Sportsbooks) and the Rating Guide (which lists all known sportsbooks). In the following pages, you will discover which areas are researched, how those areas are rated and the requirements for being listed on the Recommended List.

This is a behind the scenes guide to how SBR rates a sportsbook.

Who qualifies for consideration on the Recommended List?

Only honest, safe and legally operating sportsbooks
Verified, financially stable sportsbooks
Sportsbooks with the best specials and bonuses for new and existing players
Reputable owners and knowledgeable management
Sportsbooks with NO payout issues or misleading bonuses & promotions
Located and licensed in a gambling friendly country
When making final selections for the Recommended List a high weighting is afforded to those sportsbooks with financial stability, and the best specials and bonuses for new and existing players.

Four Evaluation Categories

There are twenty-two critical areas researched, evaluated and made available for your review. These areas fall under four evaluation categories.

Business Model and Bonus Structure
Company's Operation Model
Software Rating
Financial Stability
Each category is broken down further, in detail, to reveal the SBR rating process.

Research Area #1: Business Models and Bonus Structure

BUSINESS MODELS - The vast majority of bookmaking business models are based on the commission received by the sportsbook. This commission is usually referred to as JUICE. The following is a very basic scheme on how this commission is calculated in the American market:

How Juice is Calculated

The bookmaker offers -110/-110 odds on Team A/Team B to win a specific sporting event. Gambler 1 bets $1,100 to win $1,000 on Team A, Gambler 2 bets $1,100 to win $1,000 on Team B. The bookmaker is hence holding $2,200; out of which he has to pay $2,100 to the winner ($1,100 stakes + $1,000 winnings). The bookmaker earns a commission of $100 out of every $2,200. That is a 4.54% theoretical percentage of hold.

In the Reduced Juice market, this theoretical percentage of hold is significantly decreased for the bookmaker. Following the same premises as above, the theoretical percentages of hold for:

A 14 cent line (-107/-107) is 3.27%
A 10 cent line (-105/-105) is 2.38%
How can these bookmakers offer these discount prices?

Just like Wal-Mart they make money by dealing in a higher volume, based on the lower prices (read Best Reduced Juice Sportsbooks for further information).

Having reviewed how revenue is generated in theory, there are generally 5 different business models in this industry:

The sportsbooks that welcome all types of action. These sportsbooks cater to recreational and professional players all the same; although, their bonus programs and promotions are not intended for the professional bettor. Catering to both types of action requires a large infrastructure and a lot of man power. In this day and time, there are very few books that are currently following this model.
The sportsbooks that offer reduced juice. These sportsbooks offer discount prices and very unique lines most of the time. As explained before, they aim to attract a larger amount of players based on lower prices. Since the theoretical percentage of hold is significantly decreased for these books , the reduced juice sportsbooks do not offer a cash sign-up bonus larger than 10% (if they offer one at all) and they do not offer any form of re-load bonuses or other perks.
The sportsbooks that limit professional syndicated action and arbitrage players. This business model is based on catering exclusively to recreational and/or small players. Since their exposure on the lines is reduced, this model allows the operators to invest greater amounts of money in marketing and retention campaigns, hence offering a better environment for the amateur gambler.
The sportsbooks that offer extremely sharp lines exclusively. This business model offers little or no bonuses at all, but it gives players the highest limits in the industry. This type of book is a perfect fit for professional players with large stakes.
Scam sportsbooks: This is hardly a business model, but a sad reality in this industry. There are many "sportsbooks" out there, that are run by unscrupulous operators whose only intention is to lure the players into depositing funds that will never be seen again. Learn more about this type of rogue operation by visiting our BlackList and Scam Alert Section.
How can you tell between a profitable business model and a risky business model?

Since the amount of factors are infinite, the simple answer is to stick with sportsbooks that are long-established operations. The established sportsbook has been in business a minimum of 2 VERIFIABLE years. Or in the case of a new sportsbook, stick with sportsbooks that are financially backed-up by a major, long-established sportsbook.

BONUS STRUCTURE - A bonus or a promotion is created to attract new business or retain customers. Since the bonus itself is attractive enough to entice a bettor to make a deposit with any given book, these perks are commonly used by scam operations as well. When looking at the bonus and promotion structure, it is difficult to know the difference between a legitimate sportsbook trying to generate new business and a scam sportsbook trying to lure unaware players.

There are infinite factors that influence a sportsbooks Bonus Rating. But a responsible approach is fundamental to running a profitable business model. Every perk given to the players will lower the margin of profits of ANY operation. This is why SBR pays special attention to risky and irresponsible bonus structures.