The online bookmaking industry offers a lucrative opportunity for those who want to combine their passion for sports and business. Because of that, we have seen considerable global growth in the market. If you're going to become a bookie as a full-time career, you need to know the basics and implement effective strategies. This article will help you give an overview of the essential steps and best practices needed to establish and succeed in your bookmaking journey.
As a bookie, you will handle bets on various events, predominantly sports. You are responsible for setting odds, it means determining the probability of different outcomes and setting the odds accordingly. You must research the events, participants, and other influencing factors. Familiarity with key betting terms is also part of the bookie essentials.
Launching a sports betting business requires a solid understanding of key terms. Here is some of the essential terminology:
Odds
The probability of an event occurring, expressed in various formats such as fractional, decimal, or moneyline.
Moneyline
A bet on which team will win a game outright, without any point spread.
Juice (Vig or Vigorish)
The bookmaker's commission on a bet, typically built into the odds.
Bankroll
The total amount of money a bettor or bookmaker has available for betting.
Handle
The total amount of money wagered on a particular event or set of events.
Push
When a bet ends in a tie, and no money is won or lost. The bettor's stake is usually returned.
Layoff
A strategy used by bookmakers to reduce risk by placing bets with other bookies to balance their actions and limit potential losses.
Sharp
A professional or highly skilled bettor who consistently wins.
Future
A wager placed on an event that will occur in the future, such as betting on the winner of a championship before the season starts.
Book Balance
Managing the book's exposure to guarantee balanced betting across all outcomes to minimise risk.
Action
The total amount of money wagered on a specific game or event.
Start with an examination of your target market. This research helps in understanding the specific regulatory requirements, including the necessary licences, which are important for offering your betting services legally.
This research helps identify trends, define clear objectives that are in line with your business's operational capacity, financial resources, and workforce. Develop a strategic plan that outlines your goals and the financial roadmap needed to achieve them. It also guarantees that your business remains compliant with the relevant regulations.
You need to ensure you can operate legally where you are and what registrations, licences, or permits you need. This process can be complex and expensive, but it is essential for maintaining credibility and avoiding legal issues. Each licence comes with its own set of limitations, affecting the range of products you can provide and the regulatory framework you must follow. As of 2024, sports betting is regulated in various regions, including:
United States: Legal in over 30 states with varying regulations.
Europe: Regulated markets in the UK, Italy, Spain, France, and recent reforms in Germany.
Latin America: Regulated in Brazil, Colombia, and Argentina.
Africa: Legal in countries like South Africa, Kenya, and Nigeria.
Asia: Regulated in the Philippines and India, with varying legality in other areas.
Among other things, the years have seen online sportsbook activity steadily increase — especially as technology advances. From this experience, the sports community has had the time to study its audience and take note of exactly what makes it tick. Not to oversimplify it, it comes down to three things.
Offering attractive and competitive odds is key to attracting and retaining bettors. Maintain a balance between offering enticing odds and getting profitability to attract new customers and retaining existing ones. Regularly analyse competitors’ odds and commission rates to identify opportunities.
You can also tailor sharper odds to less experienced bettors by segmenting your players, adjusting odds dynamically based on some factors such as demand, betting volume, and market trends, and offering incentives such as free bets. While profitability is a key objective, offering competitive odds is also essential for long-term success.
Building good relationships with customers through exceptional services is also key to long-term success. Remember this industry is driven by financial transactions, so you want customers to feel secure when placing bets on your platform.
One way to build that trust is through excellent customer support. Providing professional and transparent support can also lead to organic word-of-mouth promotion. Given the importance of sports betting, here are some customer support strategies we recommend:
You need to implement a good marketing strategy to attract and retain customers. Use social media, email marketing, and blogs to increase your visibility. Highlight promotions, bonuses and unique features to differentiate yourself from competitors and engage with your audience. Don’t forget to announce your new features and developments, what is available for your users and where they can bet. Be on top and inform what sports are coming depending on the season you were and highlight the opportunities they have to bet.
Part of succeeding in every industry is adopting proven strategies. You can adapt them to your plan.
Implement Risk Management: No matter the outcome of an event, the bookie always makes a profit. You will need to balance your book, which means setting betting limits and monitoring betting patterns. To minimise potential losses, adjust odds so you are not exposed to a particular outcome. For instance, if too much money is on one side, you might make the odds less favourable for that side, or better for the other, to distribute the betting volume more evenly. One strategy you can apply in your beginnings is keeping your wagers limits and your weekly limits low until you build your reputation and the clients prove they can pay on time.
Build a Strong Website: Your online presence is your presentation card, so it is key to invest in a user-friendly platform. Add features that improve the betting experience, such as live betting options, to allow users to place wagers in real-time, and mobile compatibility to offer a good experience on different devices. Offering different payment methods can also facilitate attracting and retaining bettors. Make sure to implement security measures to protect user data and transactions.
Offer Promotions: To compete with other bookies, offer incentives such as free bets, bonuses, referrals or rewards and loyalty programs. You can also give free plays for those who pay on time. Encourage timely payments by offering rewards for prompt transactions.
Make Partnerships: In the beginning, you don’t have to do everything. You can partner with another bookie and share experiences, so long as you’re not competing in the same market. In the meantime, observe and try to accumulate as much knowledge about the industry as you can — knowledge which is most of the time freely available if you know where to look. Later on, some more advanced methods will have to kick in, such as sponsorships, affiliate marketing, media and content partnerships, data sharing, strategic alliances, and the list goes on.
The next step in running your business is finding the right platform. Identify development companies and providers that can create tailored solutions for your needs. Look for providers that offer innovative business strategies to help promote your platform to a leading position.
Invest in reliable software for sports betting that offers different functionalities such as odds setting, risk management, analytics and reports, in-play betting, licensing and customer management features.
Once you've selected your provider, you need to allocate your requirements. Decide whether a custom sports betting platform, which offers a unique approach, or a ready-to-launch platform, which provides a quicker market entry with standard features, is best for your business.
Payment systems are a key consideration that needs to be managed before launching your platform. The choice of payment methods will depend on the markets you plan to target, though some options have universal acceptance.
If you're handling the website development, you'll need to integrate these payment systems manually. On the other hand, if you're using a pre-built platform, payment options may be included, and your task will be to select the ones you wish to offer on your site. It's important to research and understand the preferred payment methods in your target region well in advance.
Offer a variety of payment methods, including credit/debit cards, e-wallets, and cryptocurrencies to reach different customer preferences. But the most important, pay on time. If you pay fast, you can easily build a reputation and your players will be confident with you, they will trust your service and will wager more. Once you pay fast when they win, you can be confident they will pay when they lose.
Effective marketing is elemental for attracting players to your platform and is a key component of running a successful bookie business. Here are some strategies to help promote your operation:
Verify that your website is user-friendly and fast-loading. As we said before, to attract and keep players, offer bonuses, provide outstanding customer service, and include high-quality features that will position your platform at the top of the market.
Gamingtec is an international brand that develops full turnkey B2B software solutions for the iGaming industry.
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