The industry of betting services is one of the most massive by turnover of funds in the world. The profitability of bookmakers’ business, according to their own statements, reaches 8–10%, but in reality, it’s likely to be higher.
Starting this business, it’s necessary to understand which level of profitability you are counting on. As opposed to trade, catering and other types of business, the profitability of bookmaker shop isn’t high enough — under 10%. It means that with a turnover of $100.000, an entrepreneur will get $10.000 per month.
The principles of betting shop’s work is simple. Every day the shop proposes ‘a line’ — a list of quotations on sport events. Any outcome of a sports event has its own enrollment that is necessary for counting the sum of wins.
For sure, this type of business has its own seasonality, especially during sporting championships. The majority of bets are made on football matches.
A little bit about the procedure of opening such a business:
You have to get a licence for opening a betting shop because it belongs to gambling. The founder must have experience working in the gambling industry. Otherwise, nobody will give a licence to open a betting shop. That’s why entrepreneurs are often looking for a skilled head and propose him a share from the business.
It’s necessary to enter the market with a certain line of bets (everydays’ quotations) to set your shop apart from the competitors. That’s why the staff of analysts or partnership with a large bookmaker company are required to start. The licence fee for providing every day’s line and software is $300-500 per month.
As soon as a new betting company opens, experienced players are directed to it. Everybody knows that newcomers make a lot of mistakes that means a big chance of making money on a lack of experience. If the entrepreneur’s suggested line is a lot different from the competitor’s proposition, the big sum will be proposed to the entrepreneur in a short term. That’s why the betting company should have a reserve fund and restrict the maximal bets for not burning up in the beginning of working.
The reserve fund has to be replenished in case of a loss and be encashed in case of a win. The size of this fund depends on the amount of bets and turnovers expected by an entrepreneur.
The processes you need to make for opening the betting shop online:
- To register a legal entity or a company
- To take a licence for leading the gambling business
- To buy software for bookmaker company
- To create a web portal for shop
- To prepare back-up funds for paying off a possible backlog of clients
- To choose a method to count bets
- To decide on maximal and minimal bets
- To find well-experienced analysts.
One of the main things is buying software for bookmaker organisations, which has to be really exact and reliable and https://altenar.com/ propose you such type of service. The price of ready-to-use platforms, where are the datas of gamers, history of bets, coefficients in online mode, varies from $50 000.
But making the platform isn’t enough for creating a website. You need extra spendings for access to the platform, processing the site, facilities support etc. For example, if there are live video broadcasts, you have to enter into the contract with copyright holders.
Main rules for not losing all
Before starting your pace into the betting’s world, take care of risk reduction. The experienced players give some suggestions:
- Use your extra funds or other passive supplies. You can’t use all sums that are critical for your affluence because the risks during the earnings in betting are really high. Don’t take the loan money or cash from family income. And don’t make big plans for the expected benefit.
- Learn to control your emotions. For any investor of high-risk assets, it’s important to stay calm and not to get into immediate impulses.
- Educate yourself. For being more professional in forecasting sports events, it’s necessary to be good at sports (from the point of view of information), sports analytics, mathematical aspects of bets. You just need to spend hours on it every day!
- Love what you do. Sports betting is boring for people who are not into a particular sports discipline. If you want to make money, but you’re not interested in the world of sports, you won’t have enough knowledge and motivation for making money on it.