How to start an online sportsbook? (2024 update)

Mar 22, 2024 Artyom Ustinov
Casinos and bookmakers complement each other and form a winning combination in the iGaming arena. Developing the betting industry is easy, but starting a new business from scratch is always difficult as it involves a lot of legal and organizational issues. To get started correctly and easily in the world of online betting, you can use Sportsbook’s solution. By the way…

Each year, the sports betting market is seeing growth, projected to reach $48 billion in 2024 and a staggering $83.5 billion by 2029. There will be an average annual growth rate of 11.65% until 2029. Today, sports betting accounts for about 30-40% of the global iGaming market, so the issue of launching sports betting is particularly acute. We will show you how to set up a betting shop in just a few steps and make the most successful bet of your life.

The work of bookmaker’s offices: answers to the main questions

Before launching an internet-based sports wagering platform, bookmakers can choose between either creating their platform or purchasing a ready-made solution from a provider.

What is the required amount of funds?

You will need anywhere from $5000 to $10000 to launch a Sportsbook as it requires a consistent revenue stream, a valid license, essential expenses, software, and continuous maintenance for the platform to operate effectively. Moreover, the bookmaker must also cover the payouts for the winning bets.

How can an operator ease its dilemma?

Acquiring off-the-shelf sports betting software is a key to effectively starting your own sports betting operator. Instead of creating the software from the ground up, you can implement established solutions from trustworthy providers. What makes it more convenient to utilize a standard solution?

  1. Utilizing cost-effective assets. Operators steer clear of expensive development and upkeep of their in-house team, and dealings with payment systems and data providers.
  2. Immediate deployment. Developing fundamental software for sports betting autonomously can consume a minimum of a year, whereas pre-made integrated solutions can be deployed in a matter of weeks.
  3. Reliability. Acquiring a ready-made solution means not only getting tested software but also a team of specialists, technologies, and a history of success.

Throughout history, humans have always needed food and entertainment, but when you add in the thrill and possibility of winning money, the results are not far behind. Sports betting has been known since ancient times, but since then, it has undergone significant changes and improvements, and modern technologies have made it possible to place bets right from home.

Why is sports betting so popular in the iGaming industry?

  • It’s the net profit of a modern betting company, which accounts for 7-15% of its total revenue.
  • It’s a way to increase initial capital quickly.
  • It’s the future of online gambling that focuses on players and their interests.
  • It’s the convenience and accessibility of online platforms that allow enthusiasts to bet on their favorite sporting events from anywhere in the world.
  • It has a wealth of features, including live events with interactive elements.

In regions where online betting is legalized, the market and innovation in this area are flourishing (Malta, Curaçao, United Kingdom, Greece, Anjouan), while bans and restrictions encourage the use of unregulated platforms and multiply fraud. The level of income and consumer confidence significantly influence online sports betting purchasing behavior, while the digital transformation of the economy and the improvement of online financial transactions contribute to the further development of the sector

Gambling license: key stages and important nuances

The key to entering the realm of iGaming is acquiring a bookmaker’s permit, akin to securing a golden ticket. The cost of this permit fluctuates based on factors such as jurisdiction, market capacity, fiscal regulations, and security protocols. For instance, in the United Kingdom, a license fetches around £6000, whereas in Germany, it amounts to approximately €20000. Curaçao stands out as one of the most cost-effective destinations for acquiring a gambling permit. Meanwhile, in Las Vegas, the initial fee for an operator’s license stands at a hefty $500000, with a renewal costing $250000.

Because of the gigantic penalties, almost every new owner of a betting shop acquires a franchise and operates under the name of another business. This way is legal, transparent, and economically feasible.

The rules have become stricter in the world of iGaming

Starting in 2023, the regulations for supervised betting markets will grow more stringent. This is due to the heightened global recognition of the gambling issue. Authorities are implementing a range of tactics to address the problem, such as

  • The Dutch Gaming Authority (DGA) consistently offers guidance on responsible betting strategies
  • The Alcohol and Gaming Commission of Ontario (AGCO) prohibits the public promotion of perks, complimentary spins, funds, and other enticements through any means conceivable
  • The UK Gambling Commission (UKGC) persists in its efforts to combat illicit money transactions and safeguard susceptible individuals
  • In the United States, Georgia and Vermont are contemplating measures to authorize web-based sports wagering
  • In Brazil, a federal statute concerning internet gambling and wagering has recently gone into effect and is set to expire on December 30, 2023.

The betting and casino market is alive and well, and legalization in it is not slowing down for a minute, literally becoming a trend in 2024. Operators need to know the local laws and the laws of the jurisdiction where they intend to launch their business.

What does a customer value most on a sports betting site?

Adored betting leaves few people indifferent. Statista predicts that by 2028, the online sports betting market will have more than 181 million users. All of them are driven by different preferences:

  • Betting with a focus on live betting. We can say goodbye to the days when betting shops could only offer individual sports such as the Super Bowl in the USA. Now customers are asking for more sports, leagues, props, and alternative odds, and they’re getting them.
  • User-friendly platform interface. Without exception, everyone wants to log in, quickly find what they’re looking for, and place a bet with one click. For online betting to be successful, operators must create a clear and easy-to-navigate website interface.
  • Sports betting websites with a well-designed back office. A big FAIL for a player is an unsuccessful attempt to access their betting account. This is terrible, especially at peak times when the games are about to start. An online bookmaker that promises smooth operations and advanced features without slowdowns is the key to a great betting site.

That’s why SoftGamings Sportsbook solutions come to the rescue for operators. They allow them to become part of an exciting business, scale, attract new players, and retain existing ones. The benefits of such a solution are:

  1. Providing clients with unique tools and services within the back-office to customize their sportsbook product, differentiating it from competitors.
  2. Assisting in conducting effective promotional campaigns with attractive bonuses, all focused on attracting new players.
  3. A rich platform functionality for self-managing risk management, a key factor for success in the industry.
  4. Increasing limits and improving odds, especially during major sports events such as the Super Bowl, and UEFA 2024

With a stable Sportsbook operation, managing odds and offers becomes simple. Ready-made solutions provide operators with all necessary risk management tools: from player profiling to fraud detection and risk parameter configuration. They help maintain balance and reduce the likelihood of unexpected losses. Another important aspect of Sportsbook operations is creating and planning events, right down to setting time frames for accepting bets.

Three steps in setting up Sportsbook

Over the past five years, there has been an explosion in online gambling, and in the coming years, its widespread prevalence will only continue to grow. Some bookmakers have not yet transitioned to real-time betting. The competition here is not high, so it is the perfect time to occupy a space in this niche. What else does an operator need to consider before launching an online betting platform?

  1. Development of unique software. If developing it from scratch, a significant amount of financial investment will be required. It is more efficient to opt for a pre-existing Sportsbook solution and customize it. Franchisees often receive software from licensors. If you plan to operate online, your expenses will be significantly lower as you won’t need to rent a physical space, hire staff, or purchase equipment.
  2. Integration of payment systems. Before launching a full-fledged bookmaking business, it is essential to integrate payment systems into the platform to provide convenient and fast deposits and withdrawals for customers. Digital wallets, cryptocurrencies, and direct bank transfers should be considered.
  3. Sports statistics & odds. Bookmakers receive odds daily from experts, and analysts, or purchase them from third-party companies for analysis of sporting events. To attract new customers, it’s advisable to reduce margins and increase the chances of gaining an edge over competitors.

Successful launch of online betting platform

For a sports betting company to successfully launch and grow, an operator must have a reserve fund to ensure that players are paid out and that there are no issues with the processing of funds. It is beneficial for companies to limit bet sizes to identify their target audience. This way, they can ensure that their business is financially viable. Franchising is also a profitable way to open a betting shop as it saves on licensing costs and is supported by the franchisor.

The experts at SoftGamings offer unique solutions to attract and retain users to the site. We work with the best providers, such as Betradar, to provide you with professional risk management and protect your business. Do not miss out on your profits as the global value of the online gambling industry is expected to grow to $213 billion in the next four years!

Artyom Ustinov

Artyom is Head of White Label & Turnkey Solutions and has been working in complex B2B/B2C sales, as well as business development and management consulting in iGaming for more than 10 years.

Together with the Key Account Management Team, he has helped over 100 start-ups and experienced gaming companies to launch their projects with SoftGamings.

Leave a comment

Your email address will not be published. Required fields are marked *

Latest News & Articles

SoftGamings Hits the Jackpot at SiGMA Americas 2024: A Full House of Gaming Solutions on Display

Apr 11, 2024
SoftGamings is attending SiGMA Americas in São Paulo, Brazil, where we’ll display our industry-leading sportsbook and casino solutions. Book a meeting to learn more.

SoftGamings Welcomes FA CHAI to the Fold

Apr 4, 2024
The SoftGamings platform enriches its range with gaming innovations from FA CHAI, teaming up with 300+ suppliers and offering 10,000+ games.

For those who want to win: UEFA-2024 and SoftGamings Sportsbook solutions

Apr 1, 2024
UEFA 2024 is one of the biggest sporting events of the year. Betting platforms are ready to offer their customers a wide range of betting markets.