The opening of the bookmaker office is a profitable business today. Various sports competitions are held every day, and sports betting business provides the opportunity to make a good money to the population.
The bookmaker business began to flourish after the casino and other gambling were banned. This business is legal, and the government treats it likely loyal since the regional budgets receive fairly solid tax deductions directly from the owners of such sweepstakes.
This article provides the general overview on the issues related to the betting company startup, considering the relevant business opening stages.
As many people search for any relevant guideline on how to start sport betting company, Bett-Market offers overview supported with the useful consultancy on such business ideas. To launch a bookmaking project, contact Bett-Market and get a support regarding the betting website creation and other options.
The general bookmaking idea has a special feature: you have to open several points at once so that the business becomes profitable. All points cannot become profitable simultaneously.
It is believed that the bookmaking services are one of the most popular industries, especially in European countries, Japan, the United States.
There are significant bookmaker companies that carry out major operations on the market, their world turnover is about 600 billion dollars, what attracts those who want to open a similar business in their country. In the CIS countries, annual turnover can range from 300 to 500 million dollars.
Betting business benefits:
- possibility of rapid initial capital increasing;
- earnings in a short period of time;
- earning in an honest way;
- a wide choice of betting systems.
Besides, bookmaking constitutes not only betting on football matches and other sports but also on different political and musical events. This business is also attractive due to the fact that the fraud is practically excluded here.
While organizing activities to run a casino, remember that there are some risks, while many earnings are shadowed. However, the business opportunity of the betting company is still beneficial and enough attractive to start it.
If we talk about the standard rate, the payment of winnings in the amount of 50% of the bets is the standard rate for one point. The percentage may range, but most bookmakers quote such figures. It is believed that the profitability of the business is about 10%.
The main task is to form and keep further the customer base, involving all the new participants in the game. Most players are men. In Italy, 40% are made by women, but the general trend tends to the men.
The share of the players among the number of citizens is only about 1%, however, an average citizen brings the lion's share of income, while professionals make no more than 0.2% of the total number of players.
If we talk about the game process, usually small bets are to be made. A big game is the matter of professionals. But this business allows getting a big win.
Bookmaking is not a lottery business, the winning strategy is built solely on the analysis of the sports competitions results. The most popular sports are football, basketball, hockey, tennis.
When beginning accepting bets for Formula 1, the number of players is not so great. Operators say that boxing is predictable. There are also more interesting options: the bets can be made for the results of political elections, for receiving famous awards as Grammy or Eurovision.
Usually, the work is arranged in the following way: the coefficients are proposed for each outcome of a particular event. The number of players does not affect the outcome of the game.
In some cases, the office may incur a loss. The winnings are paid out of the following calculation: the player's bet is multiplied by a certain coefficient. Then money is to be paid.
The most important thing is to calculate the coefficient providing the minimum required profit for the company. This is the biggest challenge.
The office can daily offer a large number of events. Options for bets further increase the opportunities of choice. Therefore, you need to understand well the sports specifics and understand the trends of world sports.
In general, the activities of the bookmaker office are similar to the work of the exchange. A list of quotations for the different events of the sporting life is presented, a coefficient is provided for each result with the relevant calculation for a win.
Therefore, everyone can estimate an amount provided by winnings in advance. The coefficients are calculated by the analysts. Usually, the beginners start with the small bets to master the business.
The bookmaker business cannot be considered as a seasonal activity, however the winter and summer holidays in football, European championships are of great importance.
As ¾ of the total number of bets are made on football matches, the rest of the time presupposes a drop in activity. Payments are usually made after the match finals within an hour, and then in the next days.
You have to get a permission or a license. Without the relevant experience of working in the gambling business, the organizer would face difficulties in arranging the office.
If you have not any relevant experience, you can involve a director or a business partner. The license must be available for each item. The license is issued for a period of 5 years.
To become a prominent figure on the playing field, you need to come out with the certain quotations. Coefficients should attract the customers, so the experienced bookmakers always succeed.
There are two main possible ways to start a bookmaking business:
- Opening a bookmaker department in the office, engaging a staff of analysts, three or four specialists with the monthly payment of 1000 dollars.
- Leasing a line, if having good relations with an organization, which provides quotations. The software will cost 300 - 500 dollars a month.
Bookmaker offices today are familiar to almost everyone. It is necessary to clearly understand that this is a kind of industry that has deep roots, its own rules of the game and some ‘underflows’, which you need to know about before you plunge into this type of activity.
Since the ancient times, sports events have been gathering crowds of fans, some of them were betting on a particular participant. Since then, lovers of gambling are trying to get more and make a profit from their hobbies.
The bookmaker business is based mainly on the ability to assess the situation associated with a certain event, which attracts the gamers to make their bets on. The main operating link is the analyst department.
The competent specialists who can correctly calculate the relevant coefficients are really valued. The work of these people is to gather information, build a clear strategy and form a sports line.
The main principle is making a profit. In the case of an unmistakable work of the analytical department, the bookmaker will have good dividends. There are many systems that work successfully. Using some of them, you can multiply your investments several times.
You will be required to have an impressive package of documents and meet the serious financial requirements.
As you understand, these requirements are almost impossible for many entrepreneurs. Therefore, the easiest way is to fit into the license of any existing large bookmaker company and open a branch of the bookmaker office.
Becoming a partner of an established organization, you will protect yourself from all sorts of problems associated with opening your own business.
In order to get the maximum profit from the company, you need to try to find a promoted market with the minimal competition. If this is not possible, then you have to be prepared for opening at least 5 - 6 bets accepting points to achieve the proper profitability.
The participants of this market segment themselves claim that the profits from the bookmaker's business are equal approximately to 20%. If assessing the profitability of this business according to the most conservative estimates, then the amount can be equal to 12-15%.
In fact, bookmakers have up to 40% of a turnover made by small bets. Thus, draw conclusions on how soon you can return the money invested and start earning.
There are two common strategies to be based on:
- The higher the coefficient, the lower the profit of the office;
- The higher the coefficient, the more people will bet on football matches etc. exactly at your office.
In order to open a bookmaker's office, you need 5,000 to 15,000 dollars. This includes rent for a room, repair costs, purchasing the necessary office equipment and Internet connection. In this case, you can expect to receive a profit of 1000 - 1500 dollars per month from 15,000 dollars turnover.
In your business plan, you need to be prepared for the fact that you will not make a profit immediately. The payback for this project is approximately 1 year. Perhaps, you will be able to return the invested money much faster, since the demand for betting has recently increased by 10 - 15%.
In order to protect the business from the bankruptcy, at first, you need to use the services of analytical agents, who will follow the whole process and provide the relevant advice.
The bookmaking startuppers particularly require such king of qualified assistance, since the crowds of professional players can rush to the inexperienced competitors to extract the maximum profit out of them.
As in any other business, you can face some difficulties and problems that hamper the effective operation of your office. Besides, attacks of the experienced competitors may pose potential some risk.
All players are conditionally divided into 2 categories: pros and amateurs. The latter are a source of bookmakers’ income, as they make bets at random, on the chance, without following a certain line and with no clear plan of actions, so the winnings are rather small.
The professionals act very subtly. Their tactics may not even be entirely legitimate. You should be aware of such clients. Having the necessary information, they can put huge sums and damage your enterprise.
Fighting such people is very difficult and sometimes even impossible. In this case, it is very important to have an experienced bookmaker who can properly identify and calculate potential damage.
To open an office in order to accept bets, you can take any room with an area of 20 sq.m. The area should be selected in a way to place at least one workplace with a table and a computer.
You can start with a room having an area of not more than 10 sq. m. The equipment may include only a table, a chair, a computer, a printer, a cash register and the Internet access.
A bookmaker office can be placed even in a small space of 5 m2. All that is needed to conduct this kind of activity is a workplace for the manager and a good monitor with a computer for tracking different bets and competitions.
Opening such office on a separate site, you need to consider the requirements of the law. Sweepstakes and bookmakers cannot be situated in the healthcare, educational, sanatorium-resort institutions. Such offices cannot be also located in temporary or residential buildings.
To conclude an agreement with a licensee company, you are required to provide LLC registration certificate, a lease agreement, and different official guarantees of compliance with the legal requirements.
If you want to limit yourself to only one manager to accept the bets, this would not be easy, it is better to hire two employees for shift work. Their wages can average between 600 to 700 dollars. As for the wages, do not try to cut corners on them, otherwise, your subordinates would not show the required performance.
Going to a higher level, you have to acquire an own staff of sports analysts in order to determine the bookmaker line with the highest possible precision. Thus, your odds will be even more attractive to your gambling customers.
Analysts can be attracted out of the competitors’ staff or requalify the professional privateers who are well versed in many sports. If you want to create your own analytical service, you have to negotiate each of them individually, as there are no fixed quotes for this segment of the market.
By the way, you need to consider that 60% of all bets accounts for the football matches, about 20% for tennis matches. The other sports do not attract even 10% of players.
The minimum staff number shall include a cashier and a manager accepting bets. The optimum number of employees is 3 - 5 persons.
The average figures to be used when starting your own business can range from 5000 to 15,000 dollars. It all depends on your vision and the availability of funds. The minimum amount includes expenses for premises, cost of office equipment, cable equipment, cash register, advertising, staff salaries, repair of rent etc.
Fixed expenses and equipment
Instead of arranging a staff of analysts, the small branches of bookmaker offices prefer to buy the special software. There are a great number of different proposals, although they differ little among themselves. However, the coefficients for sports events are often adapted from the others.
Thus, you cannot attract customers with possible profits. As a rule, the betting lines owners work for the total turnover percentage of about 20% per month. Still, you need to have a computer, monitors and a TV.
The approximate financial calculation
- Registration of the enterprise, collection and preparation of all necessary documents: about 150 dollars.
- Rental of premises from 25 square meters: up to 240 dollars. The price can vary depending on the location.
- Repair and decoration work: about 800 dollars.
- The necessary equipment: about 1000 dollars.
- Obtaining a license: about 3000 dollars.
- Advertising: about 300 dollars.
Advertising is relevant on the profile websites, stadiums, in all kinds of sports bars, at racetracks, as well as in other places where it should bring results. All possible costs for advertising may depend on their scale and on the advertising prices themselves.
Bookmaker business can be launched even with a small startup capital if opening an office using an affiliate program. You can also open an office on the Internet.
Many people consider this type of business to be seasonal, and there is a grain of truth here. A bookmaker office has the biggest odds to receive profits when the world championships are held. However, if the company has its own permanent customer base, then it does not depend on any seasonality.
If you can find the strength and raise the necessary funds for opening a bookmaker office, you can expect good profits in the short term.
Contact Bett-Market and get a relevant consultancy on all issues related to opening the bookmaker company.
The turnkey solution on the sports betting website development and other options offered for sale are available for the Bett-Market customers.
