The sports betting sector is expanding internationally. Since sports betting became legal in several markets, 2023 has been a pivotal year. At the same time, the revenue from online sports betting has reached $43.55 billion. The worldwide sports betting industry’s income is expected to expand at a staggering 9.94% rate. So now is the greatest time to enter the sports betting market and launch your sports betting business.
Sportsbook software has long been a significant aspect of online casinos, accounting for approximately 40% of their monthly revenue. According to Statista, the worldwide online sports betting market will generate $63.62 billion by the end of 2022. Given the continued growth of the sports betting sector, opening your own sportsbook will be a rewarding venture. Continue reading to learn how to launch a sportsbook and make the most of it.
How can you start your sportsbook business?
There are several possibilities for launching a sportsbook business. You can become a bookie by starting from scratch and doing everything yourself, or by implementing a white label or turnkey solution.
Self-service solution
A self-service sportsbook solution requires you to construct the sportsbook yourself. In the best-case scenario, it gives you complete independence: you own the platform and have the ability to make endless adjustments. This means you may design your own UI/UX for the website, develop a bonus system based on your preferences, and have your own back-office.
On the other side, if you decide to design a self-service sportsbook solution, you will have to spend a large cost for software and web developers. Furthermore, this process may consume a significant amount of your time, and you may discover that it was an unproductive enterprise. If you are not an experienced operator with a solid track record of long-term practice and involvement in the sports betting industry, this solution is not for you.
White label and turnkey sportsbooks
Instead, you might contact a sportsbook solution supplier and request their software for your sports betting platform. You can use the second alternative and obtain the sportsbook software and platform through a white label solution. A white label allows you to design a sportsbook that meets your specific demands. You can also obtain a sportsbook with a turnkey solution, which is configurable and relieves you of much of the labor.
Your sportsbook will require a number of subsystems to function properly. The first goal is to integrate payment methods so that players can deposit money into your online betting platform. Next, you’ll need a strong bonus system that includes effective promotional tools for offering free bets, deposit match bonuses, and other incentives to players. After that, you’ll need to find tools for customer segmentation and trend analysis, such as CRM software and affiliate systems, in order to construct effective retention and acquisition campaigns.
Your sportsbook business will also require professional workers. A business cannot function without the appropriate personnel. You will need a customer service team to assist players with technical issues, marketers to help you promote your online betting site, legal experts to ensure that your sportsbook is compliant with local regulations and does not violate the rules of the given jurisdiction, and a variety of other departments.
We’ve explored the two most successful ways to acquire sportsbook software: turnkey and white label.
However, if you already have a platform, we can provide sportsbook API connectivity. The Sportsbook API is a technology that ensures the simple and rapid integration of the sportsbook into your platform, whether it is an online casino or a sports betting site alone. To learn more about this technology, check out our article on what is sportsbook API.
What are the essential parts of the sportsbook software?
To create your sportsbook, you’ll need sportsbook software and a betting platform, which are both rather complex pieces of software that include risk management and anti-fraud systems, payment systems, bonus systems, and more. Nevertheless, the most important aspects of the sportsbook business are live events, pre-match events, tournaments, and the amount of markets. Let’s talk about these characteristics to better understand what they represent and how they contribute to a high-quality and successful sportsbook.
Live events
The sportsbook’s most essential feature is live events, which allow participants to bet on matches that are going place at the time. Thus, live betting takes place throughout the game.
When making a decision, you must choose a software provider that includes a large number of live events in their sportsbook business solution. Keep in mind that before making a final decision, you should research several sportsbooks from different providers, weigh the advantages and cons of each, and find out how many live events they offer.
Pre-match events
Pre-match festivities are held before to the start of a major match or competition (for example, the World Cup or UEFA Champions League). Unlike live events, players have more time to ponder, develop a preferred strategy, and make a reasoned prediction about the likely outcome.
While live events are the most popular, pre-match events are certainly an important and necessary component of the sportsbook. Your patrons’ choices will vary; some may choose to wager on pre-match events.
Sportsbook tournaments
Sportsbook tournaments are competitions in which individuals wager on a variety of sporting events. Nonetheless, in such events, users do not compete against in-house bookies or traders. Instead, they compete against each other. In typically, the sportsbook competition ends in a few days. In such tournaments, players attempt to predict the outcomes of several games. The winner is the person who correctly predicts the most potential game outcomes.
Amount of markets
Betting markets are another aspect to consider when launching an online sportsbook. There are numerous markets and wagers available to participants. Different sorts of markets can be identified by different names around the world. Furthermore, certain markets that are extremely popular in one country may be unavailable elsewhere.
Furthermore, the quantity of markets, not just the sorts, determines the quality of the sportsbook. In other words, the diversity and amount of markets influence the overall performance of your sportsbook.
What should you consider when choosing a sportsbook business software provider?
Only a few sportsbook providers in the iGaming market provide top-tier sportsbook business solutions to online casino operators. While each service promises to have the greatest and most advanced sportsbook solution, you must carefully select the most appropriate choice that includes the fundamental components we stated above as well as all of the features we will go over below.
Before you begin investigating the numerous sports betting platforms offered by providers, you must identify what is important to you, your goals, and what you want from the provider. Nonetheless, you should examine a few key aspects before making a final decision. We’ve developed a collection of these points and questions to assist you make the proper decisions. The main questions you should ask sportsbook solution providers before selecting one for your online casino are outlined below.
Is the provider experienced in the market you plan to operate in?
What you must look for in sportsbook software are the sports that are most popular in the industry you intend to penetrate. If the supplier does not have the sports that are well-known and popular in your target market, purchasing their sportsbook solution will be a waste of time, money, and effort.
You must ensure that sportsbook business suppliers have real understanding of the markets you intend to explore. This means that they should provide payouts, bonuses, and designs that are tailored to the same market. If you locate such a supplier, you won’t have to go through the time-consuming process of making several adjustments to your sportsbook platform in order to re-adapt it to the needs and trends of the target market.
What type of sports do they provide?
The most popular sports in the iGaming sector include football, tennis, horse racing, and American football. However, these elements alone are insufficient to create a sportsbook that meets both your business and your players’ expectations.
The thing is, sports betting websites are accessible from anywhere. Your gamers come from all over the world, each with their own unique history and preferences. While football is the most appealing option for the ordinary user to wager on, there are players who favor American football, rugby, netball, and other sports. The rule of thumb says that having a variety of options is preferable for the satisfaction of your bettors.
Do they have esports and virtual sports?
Esports is another popular gaming venue. Check the provider’s esports library for a list of games that includes names like League of Legends (150 000 – 200 000 players/viewers live every second), Starcraft (170,000 viewers), Cs:Go (328 000 viewers on average), Call of Duty (77 000 viewers on average), Dota (66 000 viewers on average), Overwatch (12 268 viewers on average), and so on.
Esports is frequently regarded as the future of betting due to its expanding global popularity. By 2022, the global esports audience will have grown to 532 million people watching and playing their favorite games. This figure is expected to rise and reach 640.8 billion by 2025. This is why having esports games in your sportsbook is so important.
Sportsbooks include virtual sports. They are simple and enjoyable to play. A virtual game is computer-generated software that simulates real-world sports. These games are fast, amusing, and produce immediate results. Many gamers prefer to place simple bets and wait for the software to conclude the game and return the final result.
Do they have a team of in-house bookmakers?
The in-house bookies’ staff consists of professionals who evaluate and set market coefficients around the clock. Bookmakers accept and pay out bets on sporting events at predetermined odds that can alter at any time during the live event. So, why would you need in-house bookmakers for your sportsbook business? Because without them, your sportsbook business will not function – no one will define the market coefficients, and relying solely on standard, pre-arranged odds would cause your online sportsbook business to collapse.
Bookmakers do more than simply anticipate the outcome of specific events. They must change the market coefficients in favor of the firm. If that doesn’t happen, it will be nothing but a debacle – a situation in which there are two static categories – losers and winners, and if we’re all on the same page, you don’t want to be the loser.
Are their odds competitive?
Better odds indicate more loyal consumers. They will wager more frequently on your sportsbook platform if they notice that you offer better odds. This is why your odds should be competitive.
To put it simply, suppose the odds that team X will win the match are 1.60, but the odds on your competitor’s betting site are 1.80. If that team wins the match, those who bet on the same outcome on your competitor’s website will win more money than those who bet on your site. This suggests that your sportsbook business provider’s odds are not as competitive as other providers’ market coefficients. If such a situation persists, you will lose customers in the long run, and your gamers will switch to other betting sites.
Needless to say, this is a pretty simplistic depiction, and reality is far more complex. However, it all hinges on how bookmakers set and adjust market coefficients. As a result, be cautious and select a sportsbook solution supplier that offers competitive odds.
What additional features does the sportsbook business has?
Aside from the functions mentioned above, sportsbook software incorporates a variety of other elements. You can operate a sportsbook business without them, but they provide a considerable competitive advantage. These aspects include a bet builder, a bonus system, a payment system, risk management tools, API interface for sportsbooks, and other marketing tools like CRM software. Let’s take a look at each of these products.
Bet Builder
Bet Builder is software that is integrated into a sportsbook and allows customers to build bespoke bets with several markets from the same event. As a result, your bettors will be able to wager on both which player will score and the number of corners in the same game. The essence is that it allows customers to combine many betting markets into a single bet.
Bonus system
A bonus system is a critical component of a sportsbook that helps you retain consumers. Every bonus system is meant to contain basic bonus types, but you should check for the option of customizing setups. In other words, you should be able to develop unique bonus sorts that only you can provide to players. It will dramatically improve your retention rate and promote player loyalty to your sports betting website.
Bonuses, competitions, and leaderboards are excellent motivators for players and can dramatically boost customer acquisition and retention. As a result, you must carefully select the sportsbook supplier who offers the finest solution, including a rich and configurable bonus system and other marketing tools to help you improve the success of your betting site.
Risk management tools
Risk management tools and anti-fraud technologies serve as your sportsbook’s defense walls. Sports betting solution providers must provide a risk management system that detects and manages potential dangers and fraudulent activity.
Fraud prevention and cybersecurity are the most pressing challenges in the iGaming industry. As a result, you should make it a top priority to invest in an anti-fraud system that includes advanced AI techniques. These solutions instantly detect suspected fraud attempts and convey the information to you or your anti-fraud department.
Standalone Back Office
Why would you need a back office for your sportsbook? Because this is the most appropriate and effective way to oversee and manage your sportsbook operations from one location. The back office is the heart of your sportsbook business, providing a consistent foundation that allows you to collect data and administer the software without having to seek information from many sources.
It works well and can save you time and effort by allowing you to run your sportsbook more efficiently. For example, you may manage your website design, place restrictions on a player or group of players, govern bonuses and create special bonus types for loyal players, track your business’s success, and receive regularly updated data.
Licensing
Every online sportsbook operator understands that the international legal environment is complex and constantly changing. You must constantly comply with legal regulations. Sportsbook business operators must obtain licenses to operate in the world’s largest markets.
Several online gambling licenses, such as the Curacao gaming license, Malta gaming license, Isle of Man gaming license, and Kahnawake gaming license, grant legal approval to service worldwide clientele.
Frequently asked questions about Sportsbook Business
How do you get a sportsbook license?
You can conduct your business worldwide with a variety of licenses, including MGA, Curacao, and Kahnawake gaming licenses. There are also several local licenses available that allow you to enter certain markets, such as a UK gaming licence. Nonetheless, at the outset, applying to a state that issues a globally recognized license is always preferable.
What is Sports Betting Software?
It is a complicated piece of software that has numerous features and subsystems. It allows your platform to accept user bets and includes numerous live events, pre-match events, tournaments, and betting markets.
What is a Sportsbook API?
Sportsbook API is a technology that allows you to connect sportsbook software without purchasing an entire platform. Sportsbook API integration is the quickest approach to obtain sports betting software and access sportsbook material.
What is white-label sports betting software?
White label sportsbook is one of the most effective ways to get sportsbook software. It provides you with a sportsbook and a platform that includes all of the systems and services, such as payments, licenses, and sports data.
How do I select a sports betting software provider?
There is a long list of elements to examine when selecting a sports betting software vendor. All of these elements are discussed in the article, but in general, you should choose a supplier that offers a variety of sports, as well as live and pre-match events. They should also offer esports and virtual sports, have competitive odds, and allow for the usage of in-house bookies.
How much money do I need to start a betting company?
Obtaining an overall estimate of how much it will cost to establish your sports betting business is difficult and depends on hundreds of variables that can change at any time. Nonetheless, if we neglect unannounced charges and unplanned expenditures, you may need between $20,000 and $50,000 to operate a successful sportsbook business.