Betting on sports is a lucrative industry that has been around for centuries. However, sports betting has evolved over the last decade into a more online experience, accessible from anywhere.
The advantage of setting up a sports betting site nowadays is the lower overhead costs. You won't have rent, electricity bills or even hired staff (unless you're growing fast). But it will require considerable effort in the start-up process.
Another advantage of online sports betting is that it can be scaled up quickly. Since you are not limited to one location, companies offer betting services all over the world. For example, bet365 Nigeria also operates in many other countries in Africa and Europe. This brings us to the first, most important part of setting up a betting company: regulation.
Every country has its own laws governing online betting. In the US, each of the 50 states has different laws... Undoubtedly, this is the biggest obstacle. Many companies operate in a grey area of legality. There may be physical casinos outlawed in the country, but we shouldn't talk specifically about online gambling yet. Or perhaps there are loopholes in the use of cryptocurrency.
In any case, if a startup has ambitions to become a multinational corporation, it should act as a startup from the start. Unfortunately, we cannot explore specific rules because not only are there too many, but they change regularly. Legitimate betting companies operating in different countries, such as this website , spend a lot of resources on compliance.
In general, plan to get a license right away.
The next step is to choose the right software for iGaming. You'll have to work hard if you try to create your own betting software, because you'll be at serious risk if a problem arises. Customisable software is ideal so that you can create a more unique sports betting experience, but choose a reliable provider so that the website is stable. One of the most important things for users is the markets and bets available, so switching to specific sports submarkets is not always the best option.
One way to take your profitability to the next level is to include casino games. These are fixed odds games that users can play when sports are not being played. Slots in particular have rapidly evolved to become gamified, a bit skill-based, with fully developed stories and characters.
Again, if the iGaming software you choose doesn't provide casino games, it's pretty straightforward. It could be a great way to expand your demographic and attract more women, given that sports betting is predominantly male.
Responsiveness and design
Another great way to stand out is a great website design. Having a seamless, interactive user interface where users can easily find the bets and markets they are looking for will keep them coming back. In addition, a design that works seamlessly on mobile devices, whether through a dedicated app or a mobile website, is likely to double the traffic potential, as most betting is done on mobile devices.
Loyalty and retention
Read also: The 7 best sports betting competitions
Next, how are you going to retain users visiting your site. In addition to great marketing (e.g. social media posts), you'll need to maintain the loyalty of your users. You can do this with loyalty programmes, such as offering free stakes every few weeks to active users, almost like "loyalty card points" in a retail shop. Newsletters and other email retargeting are also effective.
It is also incredibly important to have good customer service. Poor customer service is one of the main reasons why customers leave sports betting sites, because money-related problems (such as blocking accounts when they have $5,000 in their account) are of paramount importance to customers. These are not substances that can be brewed up for a few days.
Finally, payment methods are an important part of a successful sports betting site. Users want security, no fees and speed. If they sign up for a site, it is probably because they want to place a bet straight away rather than wait 3 days for a bank transfer.
In addition to conventional payment methods such as PayPal and MasterCard, it is worth considering cryptocurrency or there are even websites that accept payment from Apple . This will completely change the business landscape, so the decision should be made before the website is developed, but it could open many doors. For example, cryptocurrency could allow users to remain anonymous, which appeals to those who enjoy their own privacy and are concerned about individuals reading their bank statements. Similarly, it can be more efficient with faster transactions.
The final word
Apart from the market research and business planning that any business requires, sports betting websites are no different from any other company. In the long run, sports betting can be very profitable as it is always on the right side of the odds. However, ongoing marketing costs and software for iGaming are some of the biggest costs to consider in your predictions. Casino gambling is also going through a golden era of evolution, especially in the virtual reality sphere, which can be a fantastic value-added product to sell alongside the sportsbook.