So you want to start a sports betting company? Congratulations! You’re on the right track. We hope you’re prepared to dive in and build a successful business. Despite the numerous challenges that come with operating in an ever-evolving legal landscape, where each sport’s governing body regulates betting activity in their specific areas, the opportunity to engage in high-quality bookmaking on the world’s biggest games remains attractive.
Before you begin building your business, however, it’s important to ask yourself some tough questions. Are you prepared to commit the time and resources needed for the long-term success of your company? What type of person do you want to see running your business? Where do you see yourself in five years? Are you ready to make some big-time investments to grow your business?
If you answered yes to these questions, then congratulations! You’re ready to become a successful sports betting company owner. Below, we’re going to walk you through the steps to take before you begin moving around furniture to set up shop.
Step 1: Decide Why You Want To Be In The Sports Betting Business In The First Place
Do you have a burning desire to make money from a lawful activity that you believe is profitable? If so, then congratulations! You’ve found the right place. The U.S. sports wagering industry is currently valued at over $14 billion per year and is growing at an annual rate of about 4%.
The U.S. sports wagering industry is categorized as a “grey area” in terms of legality, as sports betting is technically illegal on a federal level, though several states have legalized it. However, due to the decentralized structure of the industry and the fact that most bookmakers are based outside of the United States, it is highly likely that your business will not be affected by federal bans on sports wagering. Instead, if you want to be a successful sports betting company owner, you’ll have to learn to thrive in the U.S. market while also complying with all local laws and regulations.
Step 2: Research The Sports You Desire To Bet On
Like any other business endeavor, the first thing you need to do to be able to produce a good product is to learn about the market you’re serving. In the case of sports betting, it’s important to determine the sports you want to offer and the most advantageous ones from a business perspective.
To do this, you need to become an expert in the world of sports. Fortunately for you, we’ve got an entire section of our website devoted to exploring the various sports and their corresponding odds. In the left-hand column, you’ll see a section labeled “sportsbooks”. Here, you can access a comprehensive list of all the major sports along with their odds. By clicking on any of the major sports, you’ll be taken to a page that includes all the pertinent information, including the current line and odds for that sport.
Step 3: Identify The People You Need To Be Working With
As a first-time business owner, you might be prone to overestimating your business’s ability to function on its own. After all, you’re the only one who knows what you’re doing. However, the sheer volume of work that comes with operating a business, along with the fact that you’ll need experienced help, should remind you that this is not a solo operation.
To be successful, you’ll need to identify individuals who can contribute value and expertise to your company. For example, you’ll need accountants, bookies, and legal experts to help you obtain a license and set up shop. Though you might not initially think of them as “team players”, these individuals, along with other key personnel, will be integral in helping you build and run your business.
Step 4: Obtain A Sports Licence
To lawfully engage in wagering on sports in the United States, you’ll need to apply for and secure a “sports wagering operating license” from the state in which you plan on operating. To get started, you can use our comprehensive guide to obtaining a wagering license, which includes helpful information about the process and requirements. When applying for a wagering license, you’ll need to provide documentation of your business plan and how you intend to operate, along with a financial statement. In addition, you’ll need to undergo background checks and drug tests, as well as demonstrate that you have the necessary insurance coverage.
Step 5: Research The Legal And Regulatory Landscape
In addition to needing a license to operate a sports wagering business in the U.S., you’ll also need to familiarize yourself with the legal and regulatory frameworks surrounding sports betting. Since states, not the federal government, regulate sports wagering, each state has its laws concerning what constitutes a “legal wager” and what types of payments can be made resulting from these wagers. Some states also have specific restrictions, such as a cap on the wagering totals that can be made by an individual.
Due to the ever-changing nature of the legal and regulatory landscapes associated with sports betting, it’s important to keep abreast of the most recent developments so that you don’t find yourself operating in an environment where your business is no longer legally permitted to exist. For example, in 2018, the state of New Jersey became the first to fully legalize and regulate sports wagering, which essentially made it a legal requirement for any business, operating within the state, to obtain a license. This also meant that all employees, including those working off-site, were required to be licensed in New Jersey. The new regulations also limited sports wagering to four major sports – football, basketball, baseball, and hockey – while also prohibiting wagering on greyhound races or jai alai.
As a first-time business owner, it’s important to remember that navigating and interpreting the complex laws surrounding your industry can be quite the challenge. For this reason, it’s advisable to seek the counsel of an experienced attorney who can provide the best possible representation and advice concerning your business’s legal situation. Furthermore, due to ongoing legal challenges, changes in personnel, and shifting tides of public opinion, it is advisable to re-evaluate the legal and regulatory implications of your business plan and the strength of your team, on a regular basis.
Step 6: Design And Maintain A Customer-Centric Operation
To successfully operate a sports wagering company, you need to create a customer-centric environment, one that is focused on providing the best possible service to clients and retaining existing customers, while also attracting new ones. A key aspect to creating a successful customer experience is by building a solid brand identity and engaging with customers through various platforms, including social media.
Since the majority of clients visiting your website will be looking to place wagers, you can leverage this opportunity by integrating a wagering form (most businesses use an online betting platform, such as bet365 or bookmaker.com) into your website. Having this integration means that when a person visits your website and decides to make a wager, the information needed, including the amount being wagered, will already be filled in, which saves you considerably time and effort in the long run.
How To Start A Sports Betting Company: A Step-By-Step Guide
In the last section of our site, we’ve compiled a comprehensive guide that contains the information you need to take the first step towards building a successful sports betting company. In it, we’ve covered everything from obtaining required documentation to setting up shop and obtaining a wagering license to the various processes associated with operating a business.
If you’ve been waiting to take this step, then congratulations! In another four to six weeks, you’ll be able to dive in and build your company.