How to Open a Sportsbook
Have you ever thought about opening a sports betting business? If you have you are not alone. This is because most gamblers have at some point or another thought about starting a sports betting operation. In this tutorial, we will teach you How to Open a Sportsbook and what you need to do it.
People love to bet on sports. It is a fun way to supports your favorite sports team and make the game more exciting. On top of that, it is also a way to make a bit of money on the side. In fact, 1.6 billion people bet on sports around the world and is a $400 billion industry. Needless to say, it is a very lucrative industry.
So how come more people do not go and start their own sports gambling business? The main reason is lack of information or outdated information making them think they need millions to open a sportsbook. While that may have been true 20 years ago, thanks to the internet, that is no longer the case.
So let’s begin by answering the most popular questions about the sportsbook business.
Sportsbook Myth #1 – Sportsbook make money from players losing their bets. That is untrue and that myth comes from TV and movies portrayal of bookies. Bookmakers make money from charging a commission.
A sportsbook is a type of gambling business that specializes on taking bets from customers (players). They earn money from it be charging a commission (also known as the “vig” or “juice”) for each wager taken. In most cases, the sportsbook owner (the bookie) charges a 10% commission.
However, some sportsbooks may charge as low as 5% depending on the circumstance. Some sportsbooks charge less to attract more players to a specific game or as part of their sportsbook business plan.
The main business of a sportsbook is to take wagers on anything that relates to sports. Therefore, all sportsbooks will take wagers on all major sports like football, soccer, baseball, basketball, horse racing, cricket and hockey. However, betting shops will also offer bets on more regional sports leagues and sports. Of course, they will also take bets on other sports like tennis, golf, boxing, MMA, eSports and many others. As long as there is a market for it, they will offer a line for it!
The traditional bookie and betting shop would only offer sports betting. Today, online sportsbooks have become a one-stop-shop for gamblers. This is because they offer many gambling options not found in the past. This includes casinos, slot machines, live casinos, poker rooms, virtual sports and even lotteries.
Furthermore, today, sportsbooks also offer betting on non-sporting events like TV shows, elections, space invasions, natural disasters and more!
The point is that the bigger their betting handle (the amount people bet), the more money they make. Thus, a successful sportsbook will try t cater to as many people as they can.
How Much Money do you need to Start a Sportsbook?
Sportsbook Myth #2 – You need hundreds of thousands, possibly millions to open a sportsbook. This is a far from the truth as the amount necessary will depend on the type of bookie you want to be. Depending on how you run your business, you can start with only $500.
Some businesses do not need a lot money to start, but with a sportsbook it is not the case. At least, not with today’s technology and the internet. 50 years, ago, you would need a few hundred thousand dollars to start a sports wagering operation. This is because you would have a lot of overhead like a sports betting software, rent, payroll, utilities, etc…
Today, sports betting software are much cheaper. In addition, there are cheaper options like using a while label sportsbook or a sportsbook pay per head. Thus, the startup cost for the infrastructure and software is much lower.
For those looking for hard numbers, it will depend on your sportsbook business plan and how you run your sportsbook. In essence, it will depend on the max wager and max win you allow in your sportsbook. For example,
If you have a $500 max wager limit, with 100 players that make 30 max wagers per week. Thus, you get a weekly sports betting handle of $1,500,0000. In case of a bad week where 65% of the players won, you would need enough money to cover the remaining 15% to stay in the black.
If you have a $25 max wager limit, with 100 players that make 30 max wagers per week. Thus, you get a weekly sports betting handle of $75,000. That is a much more manageable amount of money for a worst-case scenario.
If you take it a step further, with a $25 max wager and 20 players that make 30 max wagers per week you get a $15,000 sports betting handle. Thus, you could open a sportsbook with only a few thousand dollars.
On average, a small sportsbooks’ starting capital is between $5,000 and $10,000.
The Essentials of Starting a Sports Betting Business
Research and Development
Market Research
The first thing to decide is whether you want to have a physical betting shop or an online sportsbook. Once you know what kind of sportsbook you want, it is a matter of doing the proper market research to see if it is feasible or not.
Rules and Regulations
Of course, just because you want to operate in a certain jurisdiction, does not mean you can start immediately. Some countries have specific rules and regulation for gambling companies. Therefore, you will need to research whether it is legal or not to own and operate a gambling service. Or at least, for the target market where you intend to open your betting shop. in your area.
Being informed about everything that happens around your sportsbook is crucial to take action on laws or regulations that could affect your business.
What Kind of Sportsbook Operation Do You Want?
There are several different types of sports wagering operations available. Here are some of the most common ones:
- The Post-Up Sportsbook – This is the most common one. This is where customers need to have the money in cash or in their sportsbook account before they can place a bet.
- The Credit Shop – There is the credit shop where players bet on credit and you settle with them every week.
- The Discount Sportsbook – This is a type of sportsbook that attracts players by charging a low commission for each wager. Normally the commission a sportsbook charges per bet, is 10%. While a bookie might get more customers, his profit margin will be lower. Therefore, bookmakers that use this method hope to make up for it by having a bigger betting volume.
- The Big Bonus Sportsbook – This is the type of sportsbook that offers very generous bonuses to attract new players. However, a bigger bonus means it will take longer before the bookmaker can make a profit from their player.
Sportsbook Essentials to have and Research
What Sportsbook Software to Use
The gambling So if you intend and have decided to do more research on what you need to start your own sportsbook, the initial point is to choose a sports betting software.
In this case, you have Three alternatives:
- Lease or buy the sportsbook software from a gambling software provider.
- Build your own sports betting software. Certainly, this choice will depend on your budget! On average it will cost around $100,000 and more to create one.
- The Bookie Pay Per Head option which simplifies everything from sportsbook software to infrastructure, casino, racebook, and lines management. The cost will range from $2 to $20 per active player.
Essential bookie software Features
Bonuses and Create Promotions – Promotions are important, therefore, you shoold be able to easily create them in your gaming platform.- Sports Betting Odds – The idea software will easily integrate odds from various sources and also lets you edit them.
- Banking Option Integration – You want a software where you can easily add new banking options for your players.
- Reports and Player Risk Management – Reports is how you can tell if your sportsbook is doing well or not. Thus, you want a software that allows you to not just track sportsbook metrics but also has comprehensive player report.
- Gambling Integration – you want a software that allows the easy integration of different types of gambling options. For example, if later you want to add a poker room or new casino games, it should not be a difficult process to do.
Choosing the Right Sports Betting Platform and Gambling App
This sports betting platform and This goes Hand-in-hand with the Sportsbook Software but is often overlooked. This is where players will place their sports wager or play casino games in your sportsbook. Therefore, it is in your best interest to choose a sportsbook software that has an easy-to-use player betting platform.
Essentially, you are looking for one that is nice to look at and shows a clear way to place any type of wagers.
Create a Website that Defines YOUR Ideal Sports Gambling Business
A responsive website that focuses on the players’ experience is imperative for your sportsbook business. Of course, the website needs to be attractive and catch the attention of visitors. Thus, it is a matter of
it the website should in this sense, some qualities to consider for your online betting service could be Attractive, with a user-friendly interface, including all the necessary tools to promote betting!
Ads are your best friend!
To increase your website traffic, a good marketing strategy is a must! Therefore, you will need to take this factor into account in your starting capital.
The Easiest Way Open a Sportsbook – The Pay Per Head Solution
Theoretically, the easiest way would be to just buy an already existing sportsbook! However, that is probably too expensive for most people. Therefore, here is the next easiest way to start a bookie business is with a Bookie Pay Per Head Service.
This is because you only pay between $2 to $20 per active player on a weekly basis. Hence, if you have 50 players and only 10 for them make a bet during a week, you only pay for those that made a wager.
As you have seen, starting your own sportsbook business is very easy! What are you waiting for to start?
Start a Sportsbook business with PricePerPlayer.com today!
