How to make millions in the pari-mutuel industry – open your own OTB Posted on January 29, 2019 at 11:14:31 AM by StraymarJA
It’s possible to open your own OTB, you don’t even have to leave your home…..
1. Find a state where an individual can open their own OTB that’s not affiliated with a racetrack (there are a few, find one that doesn't require a hotel be part of it too)
2. Apply for Simulcast Provider License (and here’s some tips too)
a. Best if you know heavy-hitters to phone-bet into your OTB (lure them from betting at race-tracks with big rebates)
b. Have to have some dough, must put up a bond ($50k to $500K)
c. Don’t sweat it if you’ve previously been in pari-mutuel industry and had your license revoked in the past, the gaming commission will likely overlook this especially if you have the appearance of an up-standing citizen and have never been locked-up
d. OK to have silent partners of 5% shares or more (just don’t mention it to the gaming commission or put it on the application), be sure any of your silent partners give you the their portion of the initial investment in cash
e. Helps to be a good bull-shitter and ideal opportunity for a professional gambler that has a nice bankroll and lots of connections
3. Upon license approval, find a friend willing to move to that state with $100k check to find OTB location and do all the work setting up and running the OTB (no experience in that is necessary), but they must be willing to work up to 95-hours some weeks, so need someone that is dedicated and good with math sure helps (someone with a 4-year degree and some knowledge of the pari-mutuel industry would be a plus)
a. Hone-in on a city, one with an airport is a plus
b. See a lawyer and open a sub-chapter S corporation for the OTB
c. Open a business banking account and deposit the $100k check
d. Find an accountant, likely you have a relative that will do it for cheap and can do it from their own home
e. Keep in mind you need satellite dishes and decoders to get the signals, best if the OTB is located where dishes can be on the ground (especially if a state where you get lots of snow), a strip mall with a fenced-in retention pond behind it would be a plus
f. 1000 sq-ft strip mall unit is all that’s needed
g. Talk to tote companies for getting equipment and hub deal (can buy or lease betting machines)
h. Talk to the mutuel managers of the tracks you want to carry, you will need contracts with them to get the signal (be sure to tell them you aren’t giving rebates or luring customers from their race-tracks if they ask, it’s not really a rebate it’s an “incentive” LOL
4. Other things to remember about getting OTB ready for business (and keep in mind you can do all of this can be done in 5-weeks and all of this comes out of the initial $100k investment in the operation)
a. Need that high-speed data line for bet transmissions from your OTB to the hub
b. Need to purchase one real big TV for customers to watch races, and 10-12 other smaller TV’s for one wall, small TV’s at tables along other wall.
c. Need tables and chairs, plus desks for the Private part of the OTB
d. Did I mention the security system?
e. Need the neon sign above your strip mall unit
f. Be sure to add one of those units to help remove smoke from the air (gamblers gotta smoke ya know)
g. Need the Public part of OTB out front and Private phone-in office part of operation in the back
h. Need 800-phone lines for your heavy hitters to phone-in bets
i. Likely need mods to add additional restroom to the strip mall location, plus may need some partitioning of unit for the Private operation in back, plus that mutuel teller counter and self-betting terminal area, the contractor for the strip mall location is the best choice for this
j. Need a good copy machine for copying the racing programs for customers – lease one
k. Hire some experienced help if available, if there is a competing OTB in town, lure their best teller to be your mutuel teller for the pubic
l. If there is a competing OTB in town, offer free programs, beverages, and snacks to the public customers – that will put a real hurt on your competition in the area
5. Other pluses that will help grow your bank-account
a. Be sure to give good “incentives” to your best friends or people you know that are great at winning, then when they call-in bets be sure to have your Private phone-in room employees give you a call so you can jump on their picks and win some dough for yourself (you really don’t have to know how to handicap the races, let others do it for you).
b. Encourage your employees in the phone-in area to bet so you can make money off them too, if you hire people for that part of operation that are gamblers themselves you can offer them “incentives” too so they start betting heavier amd you make even more money off them
c. Since you will know how well other are doing with phone-in bets, if someone is really good consistently, just initiate a standard practice if “Joe” calls in bets, the back-room teller plays those same tickets for yourself.
d. Hire some really good horse handicappers and computer programmers
e. If there is in Indian reservation in that state, perhaps you can run their race-book and still operate your Private phone-in bet operation too, you could arrange a contract with them to pay them a smaller commission than you pay the gaming commission (that’s more bucks in your pocket). Here’s a good tip – be sure you and your general manager actually read the contract you sign.
6. If things go south, just file for bankruptcy and you may be able to open up an identical operation under a new name?
Wouldn’t it be a wonderful life making money off your friends and having other people do all the work, while you sit back and collect millions? Then you can go golfing, play high-stakes poker games with your buddies every week, hang out at the clubhouse of your local race track and call-in bets to your own OTB, go to the Super Bowl, etc. It's a Wonderful Life (till the day you meet your Maker I imagine....) Replies: