How to make a profitable business in the world of sports betting

Sports betting is a lucrative industry that has been around for centuries. However, betting on sports has evolved over the past decade, towards a more online experience accessible from anywhere.

The advantage of creating a sports betting site in current times is that there are fewer overheads. You won’t have rent, electricity bills, or even employed staff members (unless you’re growing rapidly). But, there will be significant efforts in the starting up process.

The other benefit of online sports betting is that it can scale quickly. Because you’re not restricted to one location, companies offer betting services around the world. 22bet.uno on Kenya, for example, is also operating in many other countries around African and Europe. This brings us to the first, most important part of creating a sports betting company: regulation.

Regulation

Each country has its own laws surrounding online betting. Within the US, each of the 50 states has its own laws… Undoubtedly, this is the biggest hurdle. Many companies operate within a grey area of legality. Perhaps a country has physical casinos outlawed but is yet to be specific about online gambling. Or perhaps there are loopholes through using crypto. 

Regardless, if a startup has the ambition to scale into a multinational corporation, then it must act like one from the start. Unfortunately, we cannot explore specific regulations because not only are there too many to consider, but they change regularly. Legitimate sports betting companies that operate in multiple countries, like this site, spend lots of resources on compliance.

All in all, plan to get licensed right away.

Software

The next step is to choose the right iGaming software. You will have your work cut out for you if you attempt to create your own betting software, because you will be seriously exposed if there’s an issue. A customizable software is ideal, so you can create a more unique sports betting experience, but choose a trusted provider so that the website is stable. One of the most important thing for users is the markets and bets available, so niching down into specific submarkets of sports isn’t necessarily the way to go.

Casino games

One way to take your profitability to the next level is to include casino games. These are fixed-odds games that users can play during the moments when sports aren’t on. Slot games, in particular, have been evolving rapidly, becoming gamified, slightly skill-based, with fully fleshed-out stories and characters.

Again, unless the iGaming software you have opted for doesn’t provide casino games, it’s somewhat a no-brainer. It can be a great way to expand your demographic towards more females too, considering sports betting is male-dominated.

Responsiveness and design

Another huge way to stand out is through great website design. Having a flawless, interactive UI in which users can easily find the bets and markets they’re looking for is going to keep them coming back. Furthermore, a design that works flawlessly on mobile, either through a dedicated app or mobile website, will likely double traffic potential – seeing as most bets that are placed are done on mobile.

Loyalty and retention

Next up is how you’re going to keep hold of the users that visit your site. Beyond great marketing (i.e. social media boosted posts), you will need to keep your users loyal. This can be done through loyalty programs, such as offering free bets every few weeks for active users, almost like “loyalty card points” in a retail store. Newsletters and other email retargeting is also effective.

Furthermore, it’s incredibly important to have good customer service. Poor customer service is one of the biggest reasons customers leave sports betting websites because problems involving money (i.e. accounts being suspended when they have $5000 in the account) are of utmost priority to customers. They’re not matters that can brew for a few days.

Payment methods

Finally, payment methods are an important part of a successful sports betting site. Users want security, no fees, and speed. If they sign up to a site, it’s likely because they want to place a bet right after – not wait 3 days for a wire transfer to clear.

Beyond conventional payment methods such as PayPal and MasterCard, it’s worth considering Cryptocurrency. This will completely change the landscape of the business, so it should be a decision made prior to the development of a site, but it can open a lot of doors. For example, crypto can allow users to remain anonymous, which is appealing for those that enjoy their own privacy and are worried about entities reading their bank statements. Likewise, it can be more efficient, with faster transactions.

Final Word

Beyond the market research and business planning that any business requires, sports betting websites are like any other company. In the long-term, sportsbetting can be very lucrative due to always being on the right side of the odds. However, on-going marketing costs and iGaming software are some of the biggest costs to include in your forecasts.

Casino games are in a golden era of evolution too, particularly within the VR landscape, which may be a fantastic complementary product to sell alongside sportsbook.

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