Whether it was fueled by the opportunity to enjoy the thrills of their favorite sport differently, the state of the world's economy, or the innate desire of men to explore, the significant rise in gambling over the years has been exponential. In the last two decades, the gambling industry has turned from an underworld affair, or the "rich man's hobby" to a billion-dollar industry across the globe. New trends, evolution in technology, investment in sports and recreation have contributed to the rise of gambling everywhere. Not say how a new industry with a large amount of resources has been created, with massive opportunities for large gambling operators and new bookies.
More business people are now investing in opening gambling businesses, from traditional slots machines, to online casinos, and the rise of online sports betting. Opening and operating as a bookie wasn't an easy feat before now due to heavy regulation and scrutiny from the government, but with the help of technology innovation and the Internet, owning a betting operation is now very easy. In this article, we'll explain how to start a bookie business, and the five key steps to take before launching.
What is a bookie business?
A bookie is someone or an organization who manages bets, determines odds, delivery payout and lots more. To run such an intricate operation requires understanding of the game. The main aim of every business is to make profits, which is also correct in the case of bookies, because gambling operations are not a charity event. Maximize profit without being involved in illegal activities that could shut down your operation.
It is also easy now to get more games and market options on your platform for bettors to bet on. More reach, better positioning through advertisements, social media campaigns, influencers and so much more. They are different types of bookie business; the pay per head, or the traditional sportsbook software operations for sportsbooks. They offer different types of options; game management, fund management, data management.
Starting a bookie business involves careful planning, understanding legalities, and setting up robust systems. Looking for how to become a bookie? Here are five essential steps to get you started.
#1 Research and understand the legality
Gambling in general is a heavily regulated industry, with the government imposing heavy sanctions, legal approval and documentation before operations can commence. This was not done out of bad intentions towards the industry but due to the actions of certain actors in the past and how they have soiled the reputation of the industry. But things have changed. With relaxed regulations and less rigorous documentation, anybody can open a sportsbook.
Familiarize yourself with local, state, and federal regulations concerning gambling and betting operations. It also has to be noted about the legality of sports betting in some regions. Some states in the United States consider gambling illegal and, while some have strict rules before you can venture into business. You should research what the law says about being a bookie in your location before investing your money in pursuing it.
The need for compliance measures is important. After getting the right license and documents, you have to set up a department that tracks the activities of your organization. They are to check if your business is on the right side of the law, or if you have derailed from what the law stipulates. Going against the law in your jurisdiction can be fatal to your business, which could land you in jail.
#2 Create a Business Plan/Model
Every successful business has a blueprint. Ordinary as it may sound, being a sportsbook is a business enterprise. It is important to conduct a market survey, to know the pros and cons of the business. Learning from failed bookies and success will surely elevate your position and your decision-making. Understand the demography, pick a target audience. In a heavily religious location where gambling is frowned upon, it might not be a wise decision to set up. Know your competitors. Some of them have been in the game before you, they have their loyal customers. You have to do your SWOT analysis. This will help you to identify your potential opportunities.
A detailed financial plan must be created: the total cost to set up a business, running costs, ongoing expenses, revenue projections, and funding sources. This can be done by employing the right financial experts who are capable of bringing your dreams to life. Understand that the bookie business is a torrential industry. Money can be easily made, and it can be easily lost. Getting the right financial planning to back your business plan will help you to navigate the industry easily.
Bookies are about bets. Bets can be wagered online or offline. Choose the right business model for your business. You can decide to operate online, offline, or both. Also, you have to decide the types of bets you will offer. The odd format is mostly based on location, the type of sporting events and market options that will be available, choose a plan and stick to it. Although the dynamism of the sports betting world is massive, you can always adjust your model from time to time to accommodate more customers.
#3 Technology and Infrastructure Set Up
Due to advancement in technology over the years, the betting industry has also caught the trend. An opportunity to be innovative and dynamic. A prospective bookie should set up the necessary infrastructure and the right technological framework that will seamlessly drive their business to success. Choose reliable betting software. There is a lot of software to choose from. Research extensively about it before committing to one. This betting software will help manage the wagers, payout, and user experience while also helping protect their data.
If you've chosen to operate your business online, you should have your own website. Develop a user-friendly website and mobile app with a strong security framework. You don't want a weak system that could be breached anytime. Your website must be attractive. With users' experience increasing, you want them to always use your site, so you must give them what they won't get elsewhere.
Set up the multiple payment gateways but make sure they are secure. This will help in the process of depositing and withdrawal. Allow different payment platforms from credit /debit cards, bank transfers, cryptocurrencies, and even tokens. In this digital age, customers keep their money in different forms, making it available for them to participate without any issues.
#4 Marketing and Customer Acquisition
No matter how good your website looks, you need actual people to use it, and since you're running a betting site, some level of financial commitment is expected of your customers. Parting with money is not something people do easily. You have to invest in branding, create a brand identity that your customer can easily identify with. A strong name, logo, and slogan.
You might need to get popular faces on board through the aid of an advertisement. Use digital marketing tools and strategies like social media, SEO, PPC, and email campaigns to attract customers. Getting popular faces to advertise your product will also help establish it effortlessly.
Offer users bonuses, promotions, and attractive incentives to entice them to your business. Also, develop more attractive features to keep your competitors' hands off.
#5 Establish Risk Management and Customer Support
The aim of owning a bookie business is to make and implement a risk management system to track, monitor and control potential losses. Running a business that is about increasing people's money must have a back-up plan not to slip into bankruptcy. This can be done by setting betting limits, using data to identify any suspicious activities that could pose potential problems to you.
Provide excellent customer support through multiple channels, such as live chat, email, and phone, to address customer inquiries and issues promptly. Promote responsible gambling practices, bar underage people from participating, create a strong network that could help people struggling with addictions or gambling-related issues. Show them you care about them and not just their money.
Conclusion
Operating a bookie business is a challenge, from planning to execution to sustainability is cumbersome. But nevertheless, it is a lucrative business to invest in, maximum profits can be realized when it is done right. Avoid any shady activities, follow the right legal procedures, create the right customer relations, and develop the right financial model to sustain your business.
