Pay Per Head
Pay Per Head
Pay Per Head (PPH) is a payment model in which an operator pays a software or service provider a fixed amount for each active player over a period, usually one month.
What is Pay Per Head?
Pay Per Head (PPH) is a payment model in which the owner of a betting site pays the platform, odds, or service provider a fixed amount for each active player. A player is usually defined as a user who placed at least one bet or made a deposit in the billing period. The model is often called PPH billing.
## How it works
The provider supplies a ready-made betting platform: the site, odds feed, cashier, and payment system integrations. The operator does not pay a fixed upfront licence fee for the full software and does not give up a share of winnings. Payments are tied to the number of active players, so costs rise with traffic and retention. Unlike revshare, the provider does not receive a percentage of GGR, and unlike a flat fee, the amount is not fixed regardless of activity.
## Where it is used
PPH is common among small operators and agents who run their own brand on someone else's technology stack, as well as services that sell turnkey websites. The model suits demand testing because costs do not grow when activity is zero. In high-risk verticals it appears in sportsbook and adjacent gambling, where the provider carries margin risk and regulatory requirements.
## What it affects
The cost per player must be lower than that player's average margin, otherwise every active client creates a loss. For this reason, retention, average turnover, and the share of active players in the total base matter when calculating. Low activity combined with high registration favours the operator under PPH, but raises the risk that the platform will be underdeveloped or support will be weak.
## Common mistakes
Operators count only registrations and overlook that the contract may define an active player as someone who placed even a minimal bet. The second mistake is failing to check whether the plan includes odds, support, payouts, and updates, not just the site. The third is leaving bonuses, verification, and payment fees out of the calculation, since the operator bears these separately.
FAQ
How does PPH differ from revshare?
With PPH, the operator pays a fixed amount for each active player. With revshare, it gives the provider a percentage of revenue or GGR, so costs depend on financial results.
Who counts as an active player under PPH?
The definition depends on the contract. Usually it is a player who placed a bet or made a deposit in the billing period, but the terms should be checked before signing.
Is the PPH model advantageous for a newcomer?
It reduces fixed costs and risk at the start, but it requires an accurate per-player margin calculation. Without it, the operator can lose money as traffic grows.