Which is your best sportsbook? Would you like to know how to start a sportsbook just like your favorite betting platform?
If you have wagered before or love sports, you must have come across a sportsbook you deemed perfect. From the moment you saw it, you loved its layout, its offering, user-friendliness, and everything that a good bookie entails.
The good news is, you can also have a similar sportsbook featuring your needs and style. Below, we take a look at five easy steps on how to start a sportsbook.
Understand the Industry and Requirements for Starting a Sportsbook
The first thing you need to do when learning how to start a sportsbook is to understand the industry. If you love sports, you are a step closer to understanding the betting market. But, being a sports fan is not enough.
You need to learn the ins and outs of the business. Considering that you want to offer bets on sports, read sports news, analyze statistics, and understand bettors’ minds.
At this point, you can place your first bet if you have never done it before. Analyze your emotions and why you wagered on one team over the other. This information should help you understand why bettors place bets the way they do.
Another thing you should find out about is your target clients. This will help you offer your clients the best product and services. For example, if you are targeting American players, you know you have to offer bets on American football, basketball, baseball, and tennis.
You can even talk to other bookies and players to understand the industry better. While at it, you will learn about the requirements of the business.
For example, you might learn that clients look for licensing information before placing a bet with a sportsbook. So, you might want to apply for one from your local gambling regulator or from an offshore jurisdiction.
Another thing you need to do here is to find out whether you have what it takes to start a sports book. Here are some questions to guide you determine the answer:
- How much do you know about the sports you want to offer wagers on?
- Do you have the funds?
- Will you have a website and sportsbook software?
- Do you have management and customer acquisition skills?
Ideally, this is your initial stage on how to start a sportsbook. You need to understand the market and identify the requirements for starting one. You can even create a plan to guide you through launching your bookmaker.
Enroll Gamblers and Confirm You Have Funds to Support Your Clients
The other step on how to start a sportsbook is recruiting clients and finding funds to pay their winnings. The first part of it is easy because bettors are already there. The hard part is convincing them that you are the best bookie they should wager with.
The good thing is, everyone has some close friends and family. These are your ride-or-die people who would do anything to see you prosper.
So, they will not have any problem being the first to create a player account at your bookie. If you have a welcome package for your clients, finding clients will be easier. In fact, clients will find you to take advantage of the welcome offer and other promotions you might have.
However, if you do not have money for promotions, you can ask your friends to refer their friends and family to your account. Another way you can acquire new clients is by attending sports events in colleges, local sports events, and bars.
For example, if you know a local joint that shows sports games, you can start hanging out there. You will meet many potential clients willing to place a bet with someone that hangs out with them.
Once you find new clients, ensure you have enough funds to pay their winnings. Usually, you can pay winners with the lost wagered money in a game. But, this is not always the truth.
Sometimes, you can have an unbalanced book, needing you to get money from your pocket to pay out winnings. Although this does not happen often, it is essential to have funds to pay clients on time to retain your good reputation for payouts.
Therefore, look at the maximum you can afford to pay your clients if they all won the same game. Then, have a bankroll of the same amount. Alternatively, you can ask other bookies or your pay per head provider to suggest the size of the ideal bankroll compared to the number of your clients.
You also need money to pay for your price per head service, internet provider, and other related services. That way, you do not have to worry about raising the money from the small profit you will make during the initial days of your business.
Find a Pay Per Head Solution
You need a sportsbook website and software to start a betting business. The best way to get a website and sportsbook software are from a pay per head solution provider. For example, Power Pay Per Head has been providing these products to bookies for the past 16 years.
The site also provides all other requirements a sportsbook needs to run. For example, you need sports betting markets. The site will provide you with over 15 sports betting markets, including soccer, tennis, cricket, darts, basketball, American football, tennis, Olympics, and others.
With a wide range of betting markets, your clients can find something to wager on throughout the year. This means more money for you.
Another thing that a pay per head provider can offer you is customer service. One requirement that a licenser asks from a bookie is customer service. While this might not affect you directly, your clients will want to know whether you offer customer support before signing up with you.
Fortunately, a pay per head provider can give you access to its call center at no added cost. This means that you can rest whenever you want because you do not have to be on call 24/7, responding to customer queries.
Using a pay per head solution has several advantages. For example, you do not have to apply for a license. Instead, you can operate under the provider’s license.
Another advantage is the provision of bookmaking tools, player management tools, and risk management tools. Moreover, the provider can run the sportsbook on your behalf.
Test the Sports Book Platform
Once you get the sportsbook website and software, you can test them. Use this time to understand the website and learn how to use the software. While at it, confirm whether the products will appeal to clients, help you run your bookie, and make more money.
Every pay per head provider has specific terms for how you can test its product. For example, you might need to deposit some funds that will cover the pay per head fee once the trial period is over.
Another site might allow you to create player accounts for like five gamblers. Whichever the case, use the trial period to learn how you can benefit from partnering with the pay per head provider. Remember to ask for the real product.
In other words, ask your provider to give you the same website and software you would use if you were paying for it. Also, consider a brand that is not asking for an upfront amount to test their platform.
Decide Whether You Want To Launch As a Credit or Post-Pay Bookie
The last part on how to start a sportsbook is deciding whether to launch as a post-pay or credit bookie. Most sportsbooks are post-pay. This means they require a player to deposit funds before they can wager.
If you are dealing with strangers as your clients, the best way to offer your services is by using the post-pay concept. That way, you do not have to worry about losing money.
But, you can still launch as a credit bookie. Most bookies make their wealth by offering bets on credit. Look at it this way: how much do you spend when using cash or credit card in a grocery store?
People tend to spend more on credit than on cash. Similarly, bettors are likely to wager more on credit than cash. The good thing is, you can decide how much credit to give a client.
For example, if a client pays his debt on time, you can increase their credit limit. With player management tools and reports, you can decide who qualifies for credit or not.
Once you decide whether to become a post-pay or credit bookie, you can launch your sports book. This involves something like clicking the launch button and creating player accounts. Ideally, make your sportsbook available to your clients.
Start a Sportsbook With Power Pay Per Head
There you have it, five easy steps on how to start a sportsbook. Do you need more information on starting a bookie, or are you ready to venture into the industry? If you have more questions, read the Power Pay Per Head blog, containing the wealthiest information on starting and running a bookie.
If you have no questions, you can launch your sportsbook today. Call Power Pay Per Head at 855-492-6007 and ask for logins to your sportsbook website and start taking action.