Online Sports Betting Business – How to Get Started

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Online sports betting is a multi-billion-dollar industry that shows no signs of slowing down. Every year the industry grows, with more markets around the globe legalizing the activity and more betting businesses popping up for a chance to score their piece of this lucrative pie.

If you want to join those companies and start your own sports betting site, there are a few important aspects you need to consider before you commit any capital to this endeavour. For instance, do you want to build your operation from the ground up or are you looking for a more cost-effective solution that is fast to launch, such as a white label sportsbook?

TCS has put together a useful mini-guide to help you discover the fundamentals of how to start a sports betting business in today’s competitive market.

Step 1 – Create Your Business Strategy

Create Your Business Strategy

First things first, you need a solid business plan for the online sportsbook brand you intend to operate. Diving in headfirst without a sound strategy is one of the fastest ways to fail. When creating a business plan, here’s what to consider:

What is your total budget?What software provider will you choose?If you have existing capabilities, how will you leverage them?How will you compete?What will be your company’s positioning?Is a fast launch important to you?Do you need a license?What margins do you expect your operation to deliver?

Creating a realistic strategy is essential and it begins with understanding your budget. You need to know how much capital you need to operate the business you have in mind and how much capital you actually have to work with to get your sportsbook off the ground.

It is also about knowing what sports betting products you want to offer customers as well as other important aspects such as payments, marketing, third-party suppliers, trading strategy, data feeds, etc.

From budgets and costs to customer acquisition targets, margins, and unit economics, every element of your betting business plan needs to be meticulously, accurately, and logically thought out. You need to determine precisely what will be required to operate a fast, secure, smooth, and seamless omnichannel sportsbook.

Step 2 – Choose Your Target Market & Localize

Choose Your Target Market & Localize

Knowing your target market is another major aspect when you’re planning to start an online betting site. You need to determine who your primary audience will be and build your sportsbook to suit that particular market(s). In other words, you must understand the local market and adapt to it by finding the answers to questions like:

What type of online betting experience do your customers like?What do they expect from the experience?What are common gambling trends in the country?What are the top sports/leagues, non-sports betting markets in the country?What is the primary currency used?What is the primary language(s) used?What are the local and most popular payments?How are betting odds typically displayed in the market (e.g. factional odds (British), decimal odds (European), moneyline odds (American), etc.)?What type of license or regulatory requirements do you need to legally operate in that particular market?

Localization is key to success. One of the most important steps of knowing how to start an online gambling business is to know that you do not start out by marketing your brand on a global scale. You need to narrow your competition by localizing your sportsbook and targeting bettors from a specific jurisdiction. Once you’ve found steady success in your primary markets, only then should you think about expanding your reach.

Step 3 – Choose a Reliable Software Provider

Select a reliable and reputable sportsbook software provider. It is important to do your research because not all platforms are created equally.

When it comes to choosing the ideal betting software provider you need to consider:

Regulation requirementsCustomer registrationProduct portfolioPaymentsLocalization potentialRisk managementKYC (Know Your Customer)Responsible gamingBonus systemsMarketingCRM (Customer Relationship Management) systemsData feedsTrading toolsFlexible and customizable front endStrong back office with reporting toolsTechnical customer support and/or consultation services

In essence, you need to think about what your business will need from the platform provider. For instance, do you have an existing iGaming platform and want to add only a sportsbook product? Or do you need a full turnkey iGaming solution to accompany the sportsbook product you’d like?

Knowing what you want and require (a full solution or a sportsbook API that can be quickly integrated into an existing platform) can help you decide which sports betting software solution is best suited to your business goals.

Additionally, think about the type of platform supplier with whom you’d like to partner. Do you want to be able to influence development priorities or are you happy to let another company take the reins?

Understand third-parties involved

Keep in mind that if you do choose to opt for a platform supplier, many of these providers have third-party partners that may provide payment systems, statistics, analytics, data feed, KYC, CRM, Affiliate programs, etc. While this certainly isn’t a disadvantage, just make sure that you learn about who these third-party providers are and their terms and conditions. Always have a complete understanding of all parties involved in your sports betting business.

Can I build my own platform and sportsbook?

Can I build my own platform and sportsbook

The short answer is, yes you can. The advantage of owning your own technology is that you have the freedom to innovate, differentiate from the competition and create a flexible product that works specifically for your operation. That being said, the major downside to building your own sportsbook platform from scratch is that it will take a lot of time, be very expensive, and also carries a great deal of risk.

Unless you have a solid understanding of the industry, its regulations, risks, and technical expertise, purchasing the platform and products you need for a trusted sportsbook software supplier is almost always in your better interests.

TCS makes it easy for you to research and compare premium and reputable sportsbook platform suppliers with our comprehensive sports betting platform reviews.

Step 4 – Choose Products for Your Betting Site

Not all betting sites are the same. Some offer more than just sports betting and include other gambling products as well, such as virtual sports and casino games. You need to decide what content and features will be included in the bookie business you start. Knowing what products you want as well as what products are available can also be useful in helping you find the ideal sportsbook software supplier.

Choose Products for Your Betting Site

With that said, here are some products and features to consider:

Wide range of sports markets – There is a vast array of sports markets. It’s often best to cover the most popular major sporting events and leagues (e.g. football/soccer, horse racing, tennis, golf, baseball, basketball, American football, hocket, cricket, etc.) as well as popular local sports and leagues that appeal to your target market.Non-sports markets – Beyond sports, you can offer other betting markets, including politics, celebrities, reality TV series, awards ceremonies, etc.Live betting – In addition to having an extensive range of pre-match odds and betting, live odds and in-play betting is an absolute must if you want to be competitive.eSports – This form of modern betting continues to gain in popularity, particularly for bettors who fall into the Millennial category. Examples of popular eSports include Starcraft 2, Dota-2, League of Legends (LOL) and Call of Duty.Virtual sports – This is a type of wagering that is made on computer-simulated sports events (e.g. football, horse racing, etc.). The events are very short, with new ones starting every few minutes.Data feed – Delivers betting odds, scores and real-time settlements for all major sports events.Betting features – There are many different types of bet features that can be added to provide bettors with a more thrilling, engaging and easy betting experience. Popular features include cash out & partial cash out, bet building, bet editing, multi-bet type support, speech-based betting, scheduling tools, pools betting, etc.Casino products – Slots, table and card games, and a live casino are commonly offered at bookmarker sites. One of the benefits of having other gambling products is that you can offer cross-product promotions.

Whatever products or features you decide to include with your brand, keep in mind that typically the most successful online sportsbook usually offer a wide range of sports markets with tens of thousands of pre-match and live-match events across an array of sports daily.

Be mobile first

Be mobile first

Nearly half of all bets are placed via mobile phones and this number is only likely to grow in the coming years. As such, it is imperative that you take a mobile-first approach when it comes to betting as a business online if you want to reach the greatest number of customers.

Consider native app development (apps for iOS and Android) when you launch. Even if you do not have apps for your launch, it is worth thinking about adding them at a later time.

Regardless of whether you launch an app immediately or in the future, ensure that your site is 100% mobile compatible. The mobile web version should be fast, easy to navigate as well as have simple and quick tap and bet features. It should also have all the main functionality that is available on the desktop web version.

Step 5 – Obtain A License

Obtain A License

To operate an online sportsbook, you require a legitimate license for your operation. You can either apply for the license you need on your own from the appropriate governing body (e.g. UK Gambling Commission, Malta Gaming Authority, etc.) or you can find a white label sportsbook supplier who provides the license as part of their solution.

Sports betting is legal in many European, North American, South American, African, and Asian countries. For instance, popular markets where the activity is currently legal include:

Europe – United Kingdom, Ireland, Sweden, Denmark, Italy, Russia, etc.North America – United States, Canada, Mexico, Costa Rica, etc.South America – Brazil, Argentina, Peru, Columbia, etc.Africa – South America, Nigeria, Kenya, Ghana, etc.Asia – China, India, etc.Oceania – Australia and New Zealand

Avoid making assumptions about gambling laws

Simply because sports betting is legal within a country does not mean that it is legal in every part of the nation. For instance, in some countries where sports betting is allowed, it is governed by a single regulator (e.g. UK), while in others it is regulated by the country’s individual states/provinces (e.g. USA). There are also countries that have unregulated markets where offshore sports betting is permitted (e.g. Canada).

Every country has its own rules and regulations regarding gambling activities, including regulations that apply specifically to sports betting. Therefore, do not assume that if you already hold an iGaming license for an online casino that this license covers sports betting as well. It is important to gather all the pertinent information about the countries and their states/provinces where you are planning to start your own sportsbook.

Never risk getting into trouble with the law. Always run a fully compliant and responsible gambling operation by ensuring you are partnered with regulated and reputable sportsbook suppliers. It is also a good idea to consult with knowledgeable local professionals (e.g. lawyers) to understand the region’s gambling laws pertaining to betting on sports.

Additionally, keep in mind that a white label solution can be the quickest, cheapest, and most convenient licensing option.

Step 6 – Integrate a Payment Provider

Integrate a Payment Provider

No real money online sportsbook is complete without payment processing. There are essentially two ways that you can acquire the payment processor and gateway that you need:

Independently partner with verified payment systemsObtain a flexible and secure payment system platform from a sportsbook platform supplier

No matter the path you choose to take, it is essential that your payments system features popular and local online payment systems as well as supports multiple currencies. Fraud detection and fast processing of payments (depositing, betting, and withdrawing) is another must.

Examples of popular types of payments include:Credit/Debit Cards – Visa, Mastercard, Maestro, etc.Bank transfers – Trustly, Sofort, etc.eWallets – PayPal, Neteller, Skrill, etc.Prepaid cards – Paysafecard, ecoVoucher, etc.Mobile payments – Apple Pay, Google Pay, Much Better, etc.Cryptocurrencies – Bitcoin, Litecoin, Ethereum, etc.

Step 7 – Build a Strong Team with Exceptional Customer Service

Build a Strong Team with Exceptional Customer Service

Take the time to build a team composed of the best people for the job. Recruit, train and develop a team that will not only ensure a smooth and secure bookie operation but will also offer incredible customer service.

Remember, you will have thousands of competitors, all of whom offer many of or exactly the same products and features that you do. What separates you from the competition is the type of experience you provide your customers.

Localized site features (language, currency, payments, etc.), marketing, promotions, and a quick and speedy user interface only go so far. The other major component of keeping customers happy and returning is providing them with fast, reliable, responsive, knowledgeable, and professional-yet-friendly customer service.

Optimal customer service can be achieved through:

24/7 support (multilingual support if applicable)Multiple communication channels – Live chat, email, telephone, social media, etc.Fast response timesQuick resolutions

Maximize player LTV – Employ CRM

Customer relationship management is a type of technology used for managing your company’s relationships and interactions with customers and potential customers. It collects data on players, tracks interactions and shares this information with your customer support team. This helps your team to create a customized experience for each player to maximize player lifetime value (LTV).

CRM delivers key advantages, such as:

Segmenting players into groupsCreating a tailored experience that best suits the player’s preferences and motivates them to return and spendKnowing which contact communication channel the customer prefersProviding the right customer with the right bonus at the right time

Step 8 – Employ Clever Acquisition and Retention Marketing Strategies

Retention Marketing Strategies

The last step of how to start an online sports betting site is to create a digital marketing strategy, which includes both plans for acquiring new players and – more importantly – retaining the players you have.

There are several ways that you can market your business successfully. Among these include:

Ultimately, your goal should be to devise a marketing strategy that focuses on drawing in new customers to your site, converting these customers into active players and then retaining these players. Maintaining a loyal player base costs less than acquiring new players and, when done effectively, will turn a higher profit in the long run.

Helpful Online Sportsbook Business Tips

Helpful Online Sportsbook Business Tips

With the basics covered on how to start a sports betting business, here are a few helpful tips to keep in mind before you begin your journey toward achieving success:

Know your competitors – Find out who your primary competition is so that you can discover what they do that is effective and so that you can identify and avoid their mistakes. The objective is to do what they do better and, when possible, offer something they don’t have.Give your brand focus – Choose a target market then focus and localize your brand to appeal to this market. You won’t be able to appeal to everyone, so deliver the best to the market you choose.Choose a supplier that suits your needs – Make sure the sportsbook platform supplier, etc. you choose is the right fit for the audience your targeting, and offers an array of sports, markets and live betting. Don’t settle for second best.Anticipate challenges and deal with them – Losing customers, negative reviews, and hackers are only some of the challenges you’re likely to face as an online bookie. Expect these challenges and partner with the appropriate professionals to help you avoid them when possible, improve, and stay ahead of the game.Be ready to adapt – From new technologies and changing laws to the demands of seasoned players and the expectations of a new generation of bettors, the gambling industry is ever-evolving. Long-term survival is dependent on you keeping up with the latest sports betting trends and regulations.Consider the cost of future development – In addition to knowing the size of your initial budget and working within it, you also need to consider budgeting for future further developments of your sportsbook, such as competing in new markets when the opportunity arises.

The Bottom Line

Anyone can learn how to start a bookie business, but operating a long-term, lucrative online sportsbook operation is a different story. If you are serious about achieving success, you need to be prepared to invest plenty of money, time, hard work and market research into this endeavour.

Whether it’s a white-label or turnkey platform you seek or API integration, the right sportsbook platform provider can help you make your dream to succeed a reality. Through our reviews, TCS can assist you in finding the best partner that offers the most ideal solution for your business goals.

Author: blogadmin

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