There will always be events for sports fans to stake on. New generation sports fans are not only passionate about their favorite sports, but they are eager to bet on their passion. With PCs and smartphones in everyone’s hands, betting on real sports has never been this easy.
Betting on sports is nothing new. It is a leisure activity that has been around for more than a century. However, recent global development aided other betting verticals such as virtual sports and eSports to gain traction. The growing demand provides an excellent opportunity for entrepreneurs to open new betting sites. Below, we take you through how to be part of the sports betting opportunity in 2022.
Set your goals based on your budget
The online sports betting business is like any other with regards to goals, planning, and investment. Developing a clear objective of what you want to achieve with your brand makes picking the right software providers easier. It also helps when creating the right marketing messages and communicating them to your prospective customer smoother.
Though planning does not produce immediate and tangible results like other steps, it gives your sports betting direction and strategies.
Pick a betting niche
Though tempting to offer all betting services like the top sportsbooks, competing with these international brands may be overwhelming. The best approach for a startup betting site with a limited budget is to focus on a betting vertical.
Instead of spreading your young business and budget thin, they will fare better when you target one of the popular betting niches. For a starter, branding your sportsbook as a one-stop betting site for Football, Tennis, Horse racing, Basketball, eSports, etc., stand out the site and add to the user experience. Being specific when starting improves your chance of breaking even at the initial stage while leaving room for expansion. Of course, the starting niche should be based on the popular sports in your targeted region.
Developed your site based on budget
Next is website development. Any entrepreneur planning to start a sportsbook in 2022 has two options. The first is a completely customized solution. Going in this direction gives you total control of the process and program of the website. Though it is more expensive, the solution is customized for your brand and even better if you plan to expand or add other gambling services.
The other solution is making use of an existing template. A White label solution is a full-fledged software for the betting business that includes payment processing, bonus and loyalty programs, applications, and more. It saves a lot of thousands of dollars in development cost, but at the expense of limited control on the design and functionality of the sportsbook.
Choosing payment services
Effortless transactions are essential to bettors. Therefore, payment system providers need to be thoroughly vetted for both convenience and security of transactions. It is only smart to provide customers with as many tested and trusted options for deposit and withdrawal as possible for extra convenience.
When selecting or compiling the list of payment methods, preference and availability in the targeted region should be paramount. Since cryptocurrency is a generally accepted mode of payment and will be more so in 2022, adding the option to your list of payments is also worthwhile.
Choosing a rate system
Not to be counted as trivial. The importance of picking the proper rate ratio that your audience can understand cannot be overestimated. It hints at the probability and the amount to be won with each bet. Listed below are the most used systems you can pick from based on the targeted region.
- European System: The odd is indicated with a decimal number multiplied by the bet amount. For instance, a winning bet with $100 on 1.4 odd earns the player a $140 payout.
- American System: It has – and + to indicate the odd for favorite and underdog, respectively. For instance, the odds of Team A +130 and Team B -150 mean every $100 bet on team A returns $130 while you need to stake $150 on team B to win $100.
- British system: The odds are fractional. A betting unit of the denominator gives a winning unit of the numerator. For instance, a bet of 1$ on the odd 6/1 will win $6 and a payout of $7.
Other popular odd systems are the Malaysian system, Hong Kong system, and Indonesian system.
Is the Sports betting business profitable?
The quick answer is yes, but the right question is how profitable sports betting is. The business is set up to make money, but a lot depends on your marketing effort and ingenuity. Using a hypothetical scenario where all gamblers have the same 50% chance of winning. All are required to place a bet of $110 for a chance to win $100. For every bet, the player loses $5, and it goes to the book as a rake. If a thousand players bet in a week, $5000 is generated. The sports betting business revenue is a percentage from that, which can be up to 20%.