Setting up an online betting company
According to our data, betting is entertainment for most users.
It makes watching the competition more interesting. About 25% of all punters bet with their friends, so sports betting sites can actively grow by attracting friends through an affiliate program.
Usually, sports betting sites earn between 2% and 4%. The lower the percentage of earnings and the more interesting the software interface, the more users will use your platform. According to research, the average wager in Europe is between $50 and $70.
What functions a website should have
User panel functions:
- Login. Possibility to register and authorise in several ways: login and password, email and password, integration with social media accounts.
- Choice of bets. Easy and quick selection of the sport, team, player and event to bet on at the moment. The set of these things must differ according to the sport. It is important to be able to bet on the result of a certain player, not only on the team as a whole.
- Broadcasting of the game/match. The possibility to watch the match in real time on the website or via the app of the website. Enhances the user experience and allows more business models to earn money.
- Betting help. A simple guide with clear examples (screenshots + videos) of how to bet and , how to deposit and withdraw. There should also be a system of tooltips to help the user when working with the interface for the first time.
- Team/player information. Users should be able to find out information about each team and individual players in the selected sport. This should be concise information about results, achievements, weaknesses and strengths.
- Match schedule. A calendar of future events will help users plan their betting activity. The schedule must be contextual: if a user selects football betting, a schedule of football matches must be available next to it.
- Selection of the type of betting. The selection should depend on the particular sport and users' requests (see, for instance, Betting Sites in India)
- Communicating with other members. The players should have the possibility to communicate in real time to discuss bets, events, predictions and other things. This can be realized in the form of chat rooms, forums and groups in social networks.
- Results of bets. The sum of win or loss on all made bets plus the history of bets by types of sports and types of bets.
- Payment system. The possibility in one or two clicks to enter or withdraw money from the system. Payment gateways must be integrated with the website and mobile app.
- Support multiple languages. The more of them, the greater the coverage of the audience.
- Match Summary. Detailed match statistics on the team as a whole and individual players. Allows users to analyse the performance of each player and make their own predictions for the next games based on it.
The functions of the admin panel:
- Login to the system. Several administrator roles are needed - for the owner and hired staff. The latter should have limited rights, which should be enough to maintain and moderate the site, but not enough to steal money, delete or change important settings, and the like.
- User management. The ability to monitor and manage user accounts via the monitoring panel, which gives access to all user data: profile details, betting type, amounts, results, etc.
- Input data from bookmakers. Information about the status of matches, teams, players and bets on them. Usually the bookmakers aggregate the betting data in order to give more exact data concerning the bets and the winnings.
- Management of winnings and payments. Manual monitoring and control of winnings is needed to detect fraud, detect failures and resolve disputes.
As a gambling service provider, your company must apply for a licence in your chosen jurisdiction. Review by government authorities will take anywhere from a few months to a year (depending on the country). The following must be taken into consideration when selecting a jurisdiction:
- The reputation of the state (attitude towards rates, corruption, sustainability of the regime);
- the licence requirements for the legal entity and the share capital;
- cost and duration of the licensing procedure;
- Taxes and other fiscal deductions.
Most Internet gambling companies choose the following jurisdictions:
- Curacao. There is no division into types of games bookmakers, casinos and slots. They all receive the same type of licence. There are no strict requirements for applicants, which simplifies and speeds up the process. The tax rate is 2%, which is lower than in other countries. Overall, this is an excellent option, as the Curacao authorities aim to issue permits as quickly as possible in order to increase tax revenues in this way.
- Costa Rica. A stable country that is happy to hand out betting licenses, but with two conditions: the first is that locals must not use its services, which is achieved by blocking all IP addresses in the country; the second is that your company must have a physical presence in the country. The cost of a licence is $12,000 a year. There are no tax and exchange control.
- Isle of Man. All types of gambling entertainment can be registered. The cost of the license depends on the structure of the company and the type of form, the minimum - 50 thousand dollars. If the company's revenue is less than 20 million dollars, the tax deduction is equal to 1.5%.
It is desirable to host servers (or use the services of hosting companies) in the country of registration. In this way, there will be fewer problems with jurisdiction and the laws on the protection of users' rights and personal information.
How to choose a payment service provider
To run a betting business you need to make an agreement with several payment system providers, so that players can easily and quickly deposit and withdraw money from your platform. It is recommended to provide users with as many payment options as possible for convenience. At the same time you should bet on payment services that understand the conditions of specific regions and adapt their services to those conditions.