When it comes to starting any business, entrepreneurs are normally attracted by the kind of returns that any venture promises. Sports betting is currently one of the most lucrative businesses, statistics indicate that the market is worth almost $3 trillion with more than $150 billion wagered in one country alone. Starting a sport betting business is a lucrative idea owing to the expected returns and also given that the overhead costs can be brought down if a proper business plan is laid out.
Over the years, betting on sports has evolved. There were days when everything was done at physical shops but now courtesy of technological development, almost everything has moved online. Punters do not have to visit a physical store for them to wager on their favorite teams. Using their mobile devices they can make predictions and everything related to their wagering activities. All this can be done in the comfort of your house.
For those who are looking to start a sports betting business, Aladar Kollar, a renowned gaming expert says it is now easier compared to some years before. He adds, „A mightytips.hu tanulmánya szerint jelentősen csökkentek a fogadóirodák indítási költségei. Ez annak tudható be, hogy kevesebb a kapcsolódó költség. Az embernek nem kell fizetnie bizonyos számlákat, például bérleti díjat, villanyszámlát, vagy akár hatalmas csapatot sem kell alkalmaznia az üzemeltetéshez. Mivel szinte mindent online intéznek, a sportfogadás kezdeti és működési költsége Európában és máshol is jelentősen csökken. ”
Not restricted to a given location
Apart from the relatively low start-up capital that those looking to venture into the sports betting business in Europe may enjoy, there is also the fact that one is not restricted to a given location. With connectivity, there are no boundaries, a sports betting company can offer services in any part of the world.
A good example may be bet 365 in Hungary, the sportsbook operates in many other countries allowing punters to wager on their favorite sports whether one is in the country or outside the borders. For someone starting an online betting business, the fact that you are not restricted by location means you can target a large audience, all that you have to do is ensure that you have met the requirements in the countries where you want to operate.
Sound business plan
Once you are fully convinced that sports betting business model is suitable, embark on the creation of a sound business plan. Like any other venture, sports betting business plan is a systematically designed document that has the following requirements:
- Clearly stated business goals and objectives
- The activities that you want to engage in and the business model you are likely to adopt
- The amount of capital required to start the business
- Revenue projections
- A funding model that will be adopted by your business
If you are not familiar with the preparation of a business plan, you can hire the services of a professional to ensure nothing is missed from the onset.
Funding the business
You may have the best plan, but when it comes to funding, you may have some headwinds. While you may finance the business from your pocket or from savings, sometimes this option may be limited.
This may require you to borrow from financial institutions. Funding from financial institutions will need a good credit rating, so you need to be prepared from the onset, to build your credit rate. If this option is not possible, look for other ways through which you can raise the capital while taking into consideration the interest rates as they may eat at your profit leading to slow growth.
Implementation of the sports betting business plan
With a plan and capital, you can now execute your idea. Given that you are operating on a digital platform, a good platform would be required. The platform needs to be accessible across devices while paying special attention to smartphones. Statistics indicate that the majority of punters access their betting sites from mobile devices, specifically smartphones. Use the services of professional app developers to create a platform that is user-friendly, easily navigable, and safe.
Given that there are several other sportsbooks that you are competing with, you need to stand out. Start by having the best platform where punters get a great betting experience. However, you need to have a proper marketing plan to keep them coming to your betting site. Use several means to attract punters, start by making it easy to find your site. Once you have the traffic, ensure that the conversion rates are high.
To do this, you have to be offering what the punters need. Give offers and bonuses that make it easy to wager for their favorite teams and players. Also, provide payment methods that are convenient for the bettors, ensuring that they deposit easily and get their winnings within a short period of time. Finally, you need to keep track of your business. Monitor the performance regularly and take any corrective measures that may be necessary.
Starting a sport betting business may seem difficult but with a proper plan, you can create a successful venture and enjoy the huge returns that the sector promises.