How To Start An Online Sports Betting Business
There’s rarely a bad time to start a sportsbook. Sports have nearly universal appeal, and betting on them is equally widespread, so many investors decide to open a bookmaker’s office.
But starting an online sportsbook is much more complicated than it seems at first glance.
Whether you are starting a casino/sportsbook platform, follow this step-by-step plan to start your online sports betting business.
1. Choosing The Right Software
Initially, the operator must decide whether to develop his platform or purchase a ready-made solution from a supplier.
To create his platform, an operator would need extensive experience developing and launching an iGaming business, including detailed knowledge of current requirements for online gambling software.
He would need to make a substantial investment of financial and human resources — a full-fledged team of developers, analysts, managers, and other specialists — and it will take at least a year to bring the solution to the market.
Even after a year or more of development, there’s no guarantee that the platform will run smoothly; even a few unforeseen bugs can wreak havoc on an online casino. And if something goes wrong, there will be no one to turn to.
For your first online sportsbook, it is better to choose a complete solution from a reliable supplier. In this case, in addition to a ready-made solution, the operator benefits from the developers’ expertise and:
- Rapid market entry. Platforms like Slotegrator allow you to launch a sportsbook platform in a matter of months, which is much more time-efficient than developing one on your own.
- Economic efficiency. The provider takes on lengthy negotiations on the integration of payment systems, negotiates with data providers, and provides its team of developers, analysts, and other specialists, reducing the overall cost.
- Reliability. The operator entrusts the supplier to ensure the platform runs smoothly by opting for a turnkey solution.
2. Choosing A Software Vendor
To select the right partner, you need to evaluate them in terms of key criteria:
- The solution’s flexibility. The operator must ensure that he is purchasing a platform that can adapt to the business’s needs, not just a script.
- The price/quality ratio. The cheapest solution is rarely the best, but paying through the nose doesn’t guarantee you’re getting the best value for your money.
3. Getting A License
Choosing a licensing jurisdiction might seem complicated, but the choice often comes down to your target market and financial resources.
The application process can be arduous, with long lists of paperwork to fill out — and even a tiny mistake can result in a rejection. It’s time-consuming and bureaucratic, and undergoing it without expert assistance is not recommended.
Slotegrator offers jurisdictional advisory to serve you both in selecting the proper jurisdiction and applying for the license.
4. Finding A Sports Data Provider
You need to select a data provider to offer your players up-to-the-second odds. Slotegrator recommends asking the following questions:
What data does the supplier provide?
Sports bettors have a keen mind for numbers. Using bad data on your site will drive them away immediately. It would be best if you had a data provider you could trust with your reputation.
How does the supplier provide this data?
Different markets expect odds in different formats. Does your supplier provide odds in the correct format?
Does he take over risk management?
It is an essential component of a successful project that allows you to justify decisions before making them. A sports data provider should have a dedicated risk management team.
Does the supplier provide enough opportunities to bet?
Sports bettors like to have plenty of options at their disposal. Therefore, before entering into a partnership with a particular sports data provider, you must ensure that it offers an endless number of events to bet on.
If an operator develops his platform, it’s up to him to choose and integrate a data provider. Then he needs to take into account all the clauses of the contract and prepare for the fact that after signing the contract, he can use the data only after a specific time.
Companies like Slotegrator try to expand its partner network every year and collaborates with key data providers in the global market.
The company takes responsibility for providing sports data and organizes a whole risk management team. This allows operators to focus on strategic planning and not waste time on operational tasks.
5. Choosing Payment Methods To Integrate
Lengthy negotiations with payment solution providers are the norm in the iGaming industry. In addition, the operator must know which deposit and payment methods his target audience needs.
Residents of one country actively use electronic wallets, while others prefer cryptocurrencies, and so on. Slotegrator closely tracks trends in different markets.
If the operator purchases a complex solution, he does not need to worry — the company’s experts will select the most successful combination of payment instruments and integrate them into the platform using Moneygrator.
The solution includes over 35 payment service providers with over 250 payment options, with a single integration.
6. Selecting Sports Betting Events
The choice of sports and events available on the platform will depend on your players’ tastes. For example, traditional football is the most popular sport in Asia and Africa, while Australians love rugby and cricket.
It is most efficient for an operator to offer bets on all major sports — football, basketball, tennis, e-sports, hockey, volleyball, handball, golf, rugby, boxing — and consider the audience’s specific preferences by offering sports that are popular in the country.
7. Designing A Sports Betting Website
The front end is the first thing users see when they visit a bookmaker’s website. Although this is not the main selection criterion for players, you cannot ignore the importance of website design.
The platform should be fast and functional. Simple navigation with easy-to-understand accents, as well as additional sorting and filtering options, have a positive impact on the bettor’s experience.
Illustrations, color combinations, fonts —- the design should fit the niche. The ideal design will meet marketing goals and attract the attention of potential users.
Today, one of the biggest trends in iGaming is mobile devices, so you should pay special attention to the mobile version of the sportsbook. If it is not responsive, fast, and convenient, there is a risk of losing a significant audience segment.
8. Marketing And Bonus Policy
The next step is to get players to come to the site.
To do that, you need to develop a marketing strategy and brand positioning — to summarize your values, analyze your competitors and current market position, and create a unique selling proposition.
You should pay particular attention to your bonus policy. Individual incentives for players will help build audience loyalty.
Sportsbook advertising is always subject to restrictions. Sponsorships and partnerships with sports teams are a common means of advertising, and in some markets, there is still the option of TV advertising.
Aside from that, affiliate marketing and SEO optimization are great ways to help your players find you.
Many sportsbook operators can tell you that the fastest and most cost-effective means of starting an online sportsbook is collaborating with an experienced software provider.