Becoming a Bookie. NEWBIE?

Curious

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I'm so confused on how a bookie works. Ive searched the internet but I cant find anything to help me. I get the basics of a bookie and what it is but I'm confused on how they make a profit.

Lets say 3 of my friends each place a $20 bet on the Cowboys vs. Redskins game. Lets say the Cowboys are the favorite and 2 of my friends pick the Cowboys and my other friend picks the Redskins. If the Cowboys win how does the bookie pay off the winners? Does he use his own money? Or say the Redskins win, what happens there?

Let's say all 3 of my friends pick the Cowboys and they all win. How does the bookie pay them? Lets say all 3 of my friends pick the underdog, the Redskins, and they all end up winning, how does the bookie pay them in this situation???
Thanks for the answers but can someone explain it to me in the example i gave?? im very confused and new to this
 
The goal of a bookie is to have an equal number of bets on both sides of the games. If he gets that, he wins every time.

Here's an example of the most basic point spread bet: Cowboys are favored by 3 1/2 over the Redskins. You and a friend bet $110 on the Cowboys. If the Cowboys win by 4 points or more, you win. You get $100 plus your original bet back. The bookie found 2 other guys that bet $110 on the Redskins + the points. They lost.

The bookie lost $200 to you and your friend, but he made $220 off the other 2 guys. (He made a 20-dollar profit.) On anything that's considered "even money", you always have to offer the bookie just a little more than what you'll win. That's the 'vig' or the 'juice' for the bookie.

You can see why a bookie will want to spread out the bets evenly. If he does, he'll always make money on every game. The fact is, you and your friends will never be the only guys giving the bookie action. He's got tons of customers.

Gee...but what happens if MOST of his customers end up putting money on Dallas??? Good question! In this case bookies will often "lay off" some of their bets to other bookies so he doesn't have too much risk. Simplified, it's like they make another bet with another bookie to balance their books for that game.

Realistically, many times a bookie might not need to lay off any action. Sometimes there might be games where he actually loses a little money. It just doesn't matter though, because he makes so much anyway that he can afford an occasional hit.

**********************
Regarding your example: It's all the same. He pays your 3 friends out of his own pocket. It doesn't matter to him because 3 other guys down the street had the losing pick, so he's gonna get money from them.

Each of your friends will only get about $18 profit each for their $20 bet. Don't ask why - just read again what I wrote above.
 
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