Gambling is the hottest self-starter online business these days, and with so much competition, it is becoming increasingly difficult to succeed at it.
Essential Elements to Consider
But, we are here to help you start a great online sportsbook that is built to last. The first thing though is to define what a great online betting site is so we can then move into how you can build one and become a bookie.
A great betting website will mean different things to different people, but in general, they all share the following qualities.
1 – Outstanding Coverage of Betting Markets with an Emphasis on Live Betting
The internet opened the world for us, and the days of sportsbooks being able to just offer coverage on the 4 major US sports, and prop bets only for championship games are over.
Players are now demanding more sports, more leagues, more props, alternative lines, and especially more live betting coverage.
2 – User-Friendly Betting Interface
Players want to be able to log in, find what they are looking for quickly, and place their wagers without any hassle or having to do a million clicks to submit their bets.
An organized, easy-to-navigate betting interface is crucial to the success of any online sportsbook.
3 – Sites that Never Go Down
There is nothing more frustrating for a player than, trying to access their betting account only to find out the website is offline. This is especially nightmarish at peak times when the games are about to go off.
Having an online sportsbook that delivers on the promise of 99.99% up times, with no slowdowns during busy times is a key factor for having a great betting website.
4 – Focus on Retention
Keeping bettors happy is essential to the survival of any online sportsbook, without clients you don’t have a business. The way to keep your players happy is by providing them with the best betting experience they can hope for, surpassing their expectations every chance you get, and paying them in full and on time when they win.
Now that you know, what you must have in order to build a successful betting brand, we will move into how to achieve this.
In business, there are always at least two ways to get something done, the hard way, and the easy way. Some will argue that the hard way is better because you will gain valuable knowledge, I for one, strongly disagree.
Succeeding in business is hard enough, there is no reason to go out of your way to make things even harder for yourself. Knowledge is a great thing to have, but it should not cost you your savings to obtain it. Learn from others who have traveled the road you are on, save yourself, time, money, and the aggravation.
You can start a great online sportsbook, by registering at www.AcePerHead.com, the leaders in pay per head services. They will provide you with the largest selection of betting markets, wager types, and live betting events, all on the best constructed technical interface that is truly guaranteed to have 99.99% up times. Their betting platform is easy to use, compatible with all mobile devices, and extremely fast and secure. And best of all their services at extremely affordable.
How Do I Start a Sportsbook Legally?
Sports betting is an industry that is on the rise and one that is expected to continue trending upwards over the next decade. By 2028, the sports betting industry is projected to be worth $140 billion.
For those that have kept an eye on this growing trend and who like sports, they may be tempted to get their own slice of the ever-growing pie. But, there is a lot that you need to do before you can start taking bets, such as having the right bookmaker software.
Plus, you need to know if it is even allowed to operate a sportsbook in your jurisdiction. So, how can you do it the right way and legally? This is your guide to starting a sportsbook legally.
Know Your Local Laws
The first thing you need to do is find out the laws for sportsbooks and sports betting in your jurisdiction. There are entire countries in the world that do not allow any form of gambling in a legal matter.
So, you could be shut out before you even really begin or do a lot of work prepping a sportsbook only to find out that you cannot legally operate it where you want to.
This can get a little more complicated if you are from the United States. Not every state has legal sports betting, but some do. Plus, the ones that do have several different systems for the legal way to run it.
Let’s use the state of Florida as an example. At first, sports betting was approved in the state, and you could legally do it online.
However, a case involving a Native American tribe operating a sportsbook from a reservation made the state’s law more complicated. Reservations typically had an exception when it came to gambling laws but where it got tricky was that their sportsbook was mobile.
That meant that anyone who was physically located in the state could bet on a game rather than having to do it on a reservation.
Florida’s law was not initially clear, but for now, it seems like you can only bet on physical tribe land there, whereas, in other states, online sports betting is legal. So, before trying to launch your sportsbook, make sure you have a clear understanding of the laws in your jurisdiction. Otherwise, you risk legal trouble and the chance of your sportsbook getting shut down.
Licensing and Fees
The next thing that you need to prepare for is getting a license to operate a sportsbook in your jurisdiction. Typically, every country will require you to have a license for their specific location to operate a sportsbook legally.
The US is no exception, and it can get even more complicated in certain states. This is because some states only give out a finite number of operating licenses.
One example is Massachusetts being in the process of approving sports betting. In their situation, they would give out about seven mobile sportsbook licenses.
So, this creates an environment where you would be competing with large sportsbook brands for those licenses, and it may decrease the odds of an independent bookie being approved for their sportsbook.
In the case of Massachusetts, they are also asking that sportsbooks who apply already operate in two or more states.
Then, you have to account for the fees that come with getting approved for a license. This varies by state, but in some states, you could end up paying millions of dollars in fees for a license.
These are things that you need to consider going the independent route because not only is licensing highly competitive in some areas, but it can also be very expensive depending on where you want to operate your sportsbook.
If you have the jurisdiction, the licensing, and the fees covered, you can move on to figuring out how you are actually going to operate your sportsbook.
Not everyone is a technical expert in creating an appealing website and a user-friendly interface with the necessary software and hardware for a successful sportsbook.
If you find yourself in this situation, one option you have is to use a pay-per-head system. This is when a bookie hires a third party to be in charge of all of the operations for their sportsbook.
Some of the main services include designing a website, providing the hardware and software needed for the sportsbook to remain in operation, and even offering 24/7 customer support in case any of the bettors have any issues.
So, what is the catch for this system? The only catch is that the bookie has to give a fee to the third party. This is about $10 per head, which means $10 for every bettor that uses the sportsbook to place a bet within a certain time period.
A sportsbook can be overwhelming for one person to manage, so having a pay per head allows you to have a team behind you helping out with your operating needs. This can allow you to focus on other tasks, such as the legal procedure for setting up a sportsbook in a certain area, as well as marketing the sportsbook to get bettors to place bets on it.
The Right Bookmaker Software and Hardware
Along with pay per head, you need to ensure that you have the software and hardware needed to not only keep your sportsbook operating but also meet legal requirements.
An example of this will be if you are operating in the United States, making sure that only people with devices physically located in the state can bet on your sportsbook. This is because, in most states, the law is that a person can only place bets in that state or in a state where the sportsbook is also operating in.
So, you would need to make sure you have the proper technology to track where people are betting from and if they are all doing it under the legal guidelines.
Another example would be filtering out certain games that may not be allowed to be bet on in that jurisdiction. One unique situation with this is New Jersey’s laws on sports betting. In that state, you cannot bet on college games that involve a school from their state, such as Rutgers or Seton Hall.
If you have a sportsbook there, you would need to make sure your technology can filter those games out as options to bet on for legal reasons.
However, having the right technology does not just benefit you legally. As a service to bettors, it increases the chances of them coming back to use your sportsbook if it is user-friendly, does not have glitches, and can place bets smoothly.
Finally, make sure that you have enough money to start a sportsbook and be prepared for any possible expenses that might come up in the first few months.
One important note is that you have to pay everyone that wins on your sportsbook to operate it legally. What this means is that you need to have some funds prepared in case you either have a stretch of lucky bettors, sharp bettors, or a few games that do not go the way that you expected them to.
To be on the safe side, you should have about six months of expenses ready to go before you launch your sportsbook. Luckily, for this industry, your only real expenses on a PPH bookie system are paying the winners, paying the $10 per head fee, and paying your internet bill to make sure you have a stable connection to operate this sportsbook from your own home.
The funds get more complicated if you are in an area where you have to pay for a more expensive license. Some states have quite high fees for this, so you should have the funds or at least a loan prepared for that before you apply.
A lot of businesses tend to shut down because they do not have the proper funds needed to operate. Do not end up like one of those businesses, and be as prepared as you can to handle the expense funds.
Start Your Legal Sports Betting Business
These are five of the most crucial points to get your sportsbook started legally. If you have the funds, the right bookmaker software, and are aware of your local laws and licensing procedure, you should be ready to go in no time.
Are you ready to get started? Create your sportsbook today and get a free six-week trial with our pay-per-head service.