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The online betting business model may seem straightforward. However, you’ll face various challenges and difficulties when starting your first betting business, especially if you intend to do everything alone. Betting businesses need a sleek cross-platform website, payment methods, bonus programs, customer support frameworks, gaming software integrations, etc.
You also need to set up a company and acquire gambling licenses, market the sportsbook and set up some funds for player payouts. A comprehensive plan is vital to ensure every aspect of the business is covered. More importantly, you need to learn how to start a bookie business from scratch and everything it takes to be successful.
Betting businesses are strictly regulated and each jurisdiction has unique laws that govern the activity. As such, you’ll need to ensure the business operations and website is in line with all requirements in the jurisdictions you intend to operate. Many betting shops have sprung up just to get shut down months later, and most go through various instances of rebranding before they find their place in the market.
However, some are off to a great start and go on to attain success. That's what you should be eyeing if you plan to start a betting business.
Sports Betting Business Plan
Here are 7 key aspects you need to consider when drafting a business plan for an online sports betting business.
- Market analysis and budgeting,
- Starting a sports betting company,
- Receiving gambling license,
- Creating a betting website,
- Choosing a betting software provider,
- Payment Systems integrating,
- Marketing and promotion launching.
Market Analysis and Budgeting
Market analysis is the first step in how to start a betting business. You should identify the market you want to operate, which determines the licenses you need to provide betting services in the region. Each license comes with a cap to what products you can offer and defines other regulations that affect the business.
Market research will help your team identify the market, its size, and competition. Then you can set goals based on your business capacity, financial resources, personnel, etc. Betting businesses also need well-thought goals, strategies and budgets.
From the market research, you can strike a balance between your budget, goals, and capabilities. You’ll also have a clear picture of your strengths, weaknesses, competition, and regulations.
Starting a Sports Betting Company
Your betting business should be legal and needs a gambling license from credible commissions in the markets you intend to operate. The licenses are issued to a company, so the first thing you’ll need to do is register a company.
Make sure you register your company in the correct industry to avoid problems in future when applying for a license. Ensure you research the processes involved in how to start a betting company in the jurisdictions you intend to operate.
Receiving Gambling License
The sports betting business license is vital if you are pondering how to start your own betting company. Here are some top gambling licensors you’ll encounter.
Curacao. The Curacao Gaming License gives you the right to provide casino games, sports betting, lotteries, bingo, and poker. You can provide your services globally, except the restriction imposed by Curacao License and Local License requirement.
Malta Gaming Authority. Malta License grants you the right to provide services in the EU, except the Malta License restrictions and Local License requirement. You can provide casino games, eSports, sports betting, lottery, bingo, fantasy games, Bitcoin casinos, and games of skill. The application process takes 12-16 weeks.
UK Gambling Commission. The UKGC license gives you the right to accept players from Great Britain. It is also the most reputable license, so you can accept players from all countries. You can offer arcades, casinos, sports betting, bingo, gaming machines and software, lottery, remote gambling, mobile casinos, etc.
License Application Process:
- Application. Get the license application form and fill it accurately to avoid issues with the licensing commission.
- Business plan. Learn how to make a polished and well-structured business plan in the required format and submit it with the application.
- Fulfilment of requirements. Make sure you fulfil all license requirements, such as providing adequate casino security and a self-exclusion option.
- Operational requirements. Set up the bookie’s operations, such as payment methods, registration, game lobbies, and other frameworks.
- Compliance review. Review all compliance requirements to ensure your business is in line with what the license obliges.
How to Create a Betting Website
You should learn how to make a sports betting website that’ll host the markets (cricket, soccer, football, etc.) you’ll be offering to your customers. There are three main ways to create a website as follows:
- Self-development of a betting website;
- Outsourced bookmaker website development;
- Ready-made solution.
Self-development
When researching how to make a bookie website, you'll have to choose whether to do everything by yourself or with your team. Well, custom development is time-consuming and requires in-depth knowledge of web designing. You’ll need to consider all features and aspects of the website and how to leverage existing gaming technology to provide a captivating, functional, and secure bookie software.
Self-developed websites are extremely challenging and better to be delegated to experienced website developers. Also, it's an extremely continuous process.
Outsourced development
If you don't have the skills or time required to develop a website from scratch, you can outsource the service. Several web developers are ready to help your company build a professional-looking website that's functional enough to start generating profits right away. However, outsourcing web development can result in delays and overreliance on the developer.
It is great for you if you want to learn how to create an online betting site but it may be too time consuming and not suitable for your long-term needs.
Turnkey solution
Turnkey is one of the best answers to the question of how to start your own online sports betting business from scratch. It offers a quick betting platform and ongoing support delivery and costs less than outsourced websites. Turnkey solutions include high-class ready-made sportsbook and casino software you can launch in less than 48 hours.
It is ideal for anyone with a basic web design understanding and who requires little customization to get started. Besides its quick setup, the solution supports all major game providers, feed providers, and payment solutions.
Choosing a betting software provider
Opening a sports betting business will require various applications, odds software and RNGs if you intend to have virtual sports on board. You can learn how to build your betting software, but that's not always feasible. If you use services of outsource web designers, you'll need to find a reputable betting software provider.
Conversely, if you use a ready-made solution like Turnkey, you won’t need to worry about odd software and other integrations. Everything is pre-built and upgrades are done by the provider. If you are looking to start a simple sports betting site that works and accepts real money bets, a ready-made solution will save you more time and money.
Payment Systems Integrating
Payments are essential elements of real money sportsbooks, so you need to think about the banking systems before starting an online betting business. The methods you’ll integrate will depend on the markets you intend to operate on, although some options are accepted everywhere.
If you are developing the website by yourself, you'll have to integrate payment systems from your end. On the other hand, if you have a pre-built system, the payments will come with the suit. All you need to do is to decide which options you want to include on your website. Make sure you review the market and popular payment methods in the region in advance.
Marketing, Promotion and Launching
Learning how to run a sports betting business is just as important as starting it. One of the crucial steps in running a business is marketing. If you need to launch the website and expect players to be eager to sign-up, you should start marketing early.
There are various ways to promote a business, including search engine optimization, direct emails, referral program, social media marketing, etc. Your website should be well-organized and load swiftly. You’ll also need bonuses to attract and retain players, VIP customer support, and other top features that distinguish your site from the rest.
XumaGame is one of the best solutions if you want to receive a successful platform in almost no time. Of course, you'll have to do some marketing by yourself, but you can also take advantage of XumaGame’s Affiliate and Agent Systems that may contribute to the promotion of your website dramatically.
Conclusion
Starting a betting business is easier than it has ever been, thanks to ready made solutions like XumaGame. They help to speed up the website development process, so you can focus on acquiring licenses, permits and certifications. You can also get consultation from support on how to obtain the licenses and set up the betting company.
XumaGame is an easier way to start a bookmaker business with little to no background knowledge about how the industry works. However, it is vital to conduct thorough research before launching a betting site too.
