How to Start a Sportsbook

The starting point in launching your sportsbook is choosing the sports betting software. Experienced operators with a vast knowledge of how the iGaming industry works usually decide to build the sportsbook from scratch. This includes all aspects of the business, from working with a team of developers to design the site and run the back office to implementing the odds, stats, payment methods, and all other features.

In-house solutions warrant substantial financial resources and time. For in-house sportsbook software to go live, it takes about a year or more.

On the other hand, there are white-label and turnkey solutions that most operators go for. These are pre-made systems with all the basic functionalities every sportsbook needs and numerous customisation options.

The white-label solution is the fastest option and, at the same time, the most affordable one. The pre-built features include integrated CMS systems, advanced reporting, payment processing services, support for different languages and currencies, and round-the-clock customer support.

Turnkey solutions also give you access to thousands of pre-game and live events you can offer to bettors, as well as multiple other features, such as loyalty systems, sports bonuses with free bets, CRM and CMS systems, and 24/7 technical support.

The turnkey solution offers a broader range of customisation options than the white-label option, such as custom odds and lines, widget customisation, banner design, and many more tweaks regarding front-end design and back-end development. Conversely, the white-label solution is faster to roll out, hence its more limited customisation opportunities.

Data providers are essential for sportsbooks since there can’t be any sports betting without them and their odds. You need to ink a deal with trusted and reputable data providers in order to avoid the risks of having miscalculated odds or delays that can lead to severe losses.

Suppose you opt for the turnkey or white-label solutions from SoftGamings. In that case, you will gain access to licensed and recognised data providers, such as BetRadar, Betconstruct, Digitain, and SBTech — the absolute leaders in the field.

However, should you decide to build a sportsbook from the ground up, there are a few things to consider. First is the reliability of the data provider, including the forms and methods of data delivery. You must also ensure that the data is suitable for your business and that all the documentation is transparent and in order.

Data providers also offer risk management tools that allow you to successfully identify and manage potential risks, which abound in this business. The risk management team handles things such as pricing, risk parameters, detection of fraud and misuse, building customers’ profiles, and much more.

The front-end design occupies a prominent position in the launch procedure — after all, it is the first thing bettors notice when they enter a site. The rule of thumb is that it should be fast and intuitive. A user-friendly interface with simple navigation is the way to go because players want to find all the functionalities and buttons in a blink of an eye. They will likely leave if it takes too long to get around the site.

Moreover, the colour scheme, slogans, banners, and the dominant theme of the sportsbook play a significant part as well. Anything eye-catching but not too ostentatious will do the trick.

The sportsbook must also be mobile-friendly. More than 70% of bettors use their mobile devices to place bets on the go, so a sports betting site that is laggy and not intuitive or optimised for Android and iOS devices will likely face a shortage of traffic.

Payment processors are an essential building block of every sportsbook. Gambling platforms need a variety of payment service providers (PSPs) including e-wallets, debit/credit cards, e-checks, prepaid methods, and cryptocurrencies. The more options you have to offer, the better.

These PSPs must support virtually all fiat money and cryptocurrencies to expand the sportsbook’s reach in specific markets and territories.

To gain traction in an oversaturated market such as iGaming, up-and-coming sportsbooks need to be licensed and regulated from day one. Users want to know that they are betting in a safe environment. Owners are, therefore, prompted to obtain licensing from reputable jurisdictions such as the Malta Gaming Authority, Curaçao e-Gaming, the United Kingdom Gambling Commission, and many others that license sites on a global scale.

Security systems need to be top-notch as well. Anything less than 128-bit SSL encryption and impenetrable firewalls won’t cut it.

In addition, sportsbooks that have their software verified by independent testing agencies such as iTechLabs, eCOGRA, and others will give players the sense of security they need.

To run a sportsbook that generates profit, you need to get players to bet on your platform. One of the ways to do it is by offering wagering opportunities on all sports, starting with:

The more sports you offer, the better. Including niche markets such as darts, politics, and entertainment can also be what tips the scale in your favour. SoftGamings’s sports betting solutions powered by BetRadar, SBTech, and BetConstruct offer close to 400,000 events per year on more than 60 sports, plus 200,000 live events on 20+ sports, ensuring the variety the punters are after.

Aspiring sportsbooks need clear advertising strategies to position themselves in the market. You must analyse the competition to find out what your unique selling proposition can be. Also, marketing efforts need to be directed towards building a recognisable brand with clear values that appeal to bettors globally, such as fairness, safety, stability, and entertainment.

Attracting traffic to your site is the ultimate goal. To do so, you need to run special bonuses and promotions, including tournaments, welcome bonuses, reload, cashback, free bets, and many other deals.

Finally, it pays to partner with affiliate marketers to promote your product and help it gain the attention of bettors. These companies employ various tactics such as SEO, PPC, and content marketing to spread the word about your sportsbook.

The cost of launching an online sportsbook depends on multiple factors, such as the solution you choose, the design, the features you wish to include, and more. On average, a third of the total cost goes to the implementation of the software, whereas the licensing costs go anywhere between 10%–20% of the budget. Marketing endeavours consume around 30% of the expenses.

Once the initial development phase is complete, the costs only go towards the maintenance of the product and are significantly lower. Other operating expenses include management, licensing fees, and royalties paid to the software developers.