With more states legalizing it each year, online betting is rapidly becoming one of the most popular and lucrative pastimes to hit the internet in years. For any entrepreneur looking to launch a successful and profitable enterprise, taking this road is well worth considering. However, there are several important considerations to keep in mind before you jump into this arena.

The benefits of running an online sports betting business.

No doubt about it, Americans love sports. When they aren’t actively participating in games themselves, they seem to love nothing better than watching the professionals play. Millions of fans intensify the fun by electing to stake money on the outcomes.

Now that placing bets online is legal in many states, it’s time to look into the benefits of running an online betting operation. They include the following.

• Online betting is easy and fun.
• It doesn’t necessarily require expertise or a large financial outlay.
• Since the enterprise is operated online, it is scalable and can be successfully run from anywhere.
• There is the potential for expansion since online betting attracts a growing audience that can even be global if desired.
• You can avoid working with bookmakers simply by investing in a sports betting exchange that pits users against each other.

Considering these advantages, it is no wonder that the industry is expected to grow by a massive $135.08 billion by 2024.

How to start your own sports betting business online.

As with any new enterprise, it is crucial that you plan carefully and conduct thorough research before opening your virtual doors. At minimum, follow the tips outlined below. 

• Establish a partnership with a third-party service provider. Make sure they demonstrate a comprehensive understanding of the sports betting market and industry, the jurisdictions offering sports betting licenses, how to launch a sports betting site in your jurisdiction of choice, knowledge of ongoing costs and connections with other betting service providers.
• Narrow down your target audience. Consider factors such as level of betting experience desired, age, income, geographic location, and personal interests.
• Decide where you will be licensed and incorporated. This is usually based on where your customers are located. Sports betting is already beloved in Italy, the UK, Australia, and Canada, and its popularity is skyrocketing in Scandinavia, Russia, and France.
• Determine how online betting will take place. Options include browser-based gambling, a mobile app or an in-browser app. You will also need to figure out whether to invest in optimizing your website and/or app for mobile phone users or if you will opt simply to attract desktop and laptop computer users.
• Come up with a plan to advertise and market your website. Even a superlative online presence will be useless if no one knows it exists.
• Settle on what sports your customers can bet on based on the games they prefer. You might also opt to offer betting on fantasy sports, eSports, and even non-sports outcomes such as political races. Making the right decisions can enable you to provide what your customers want while perhaps even supplying something your competitors do not yet feature.
• Based on the sporting event types you support, determine what types of bets you will have on your site. Options include handicap, point spread, moneyline, futures, prop bets, progressive parlays, full cover bets, reverse bets, and more. To do this, you will need to become knowledgeable about all betting types and terminologies.
• Write a business plan. This blueprint is what you will present to investors, banks, regulating authorities, licensors, and service providers. It should include components such as: executive summary, business overview, operations plan, market analysis, the products and services you will offer, sales and marketing, description of your management team, a summary of your financial plan, and information about the third-party providers you will partner with.
• Recognize that you will have ongoing costs that will continue after your initial startup. These will include things like fees for auditing and accounting, company renewal, service providers, license renewal, payment processing, employee compensation, rent and utilities, equipment, IT support and payment gateway hosting, “high-risk” payment processing, web design and development, and insurance for your business and staff.
• Market your website and apps through as many channels as possible. These should include social media, email campaigns, press releases, banner ads on other sites, event sponsorships, content marketing, affiliate marketing, and multimedia strategies.
• Incorporate your company in your jurisdiction of choice. In order to do so, you will need to provide proof of identity and address, company purpose, and other documentation.
• Get a gaming license. Many companies are opting to go with offshore company formation, which is generally faster and more cost-effective. Documentation you will need usually includes proof of identity, source of funds, proof of address, your business plan, target customer demographics, company paperwork, and resumes of your employees.
• Find a high-risk payment processor. Although it will involve longer application wait times and higher fees, online betting and gaming is always considered risky by providers. It is advisable to find a reputable processor that allows you to offer numerous payment choices to your customers, including cryptocurrency, direct transfer, ewallets, and credit and debit cards. Before you commit to a particular processing company, be sure it is a reputable firm with expertise in online betting. Remember that cheaper is not always better, and only select an option that provides high-quality support and customer service.
• Recruit and hire your team. Your staff should include managers for IT, operations, human resources, risk and compliance, marketing, and finance. Depending on the size of your operation, you will also want to bring supervisors and general staff on board who are also experienced in these areas.
• Hire your customer service team. You should be equipped to communicate with your clients via numerous channels: social media, email, phone, and webchat. Representatives must be fluent in the languages your guests speak and available around the clock. Providing accessibility and maximum transparency to customers is the best way to address problems and prevent escalation.

As you can see, opening your online sports betting enterprise is a multi-step process that is not for the faint of heart. However, as long as you devote time, hard work, and careful research to the process, you have a good chance of embarking on a highly satisfying journey. Considering how popular online gaming is poised to become, it might be the perfect time to bet on yourself.