How to Start a Sportsbook?

Sports betting businesses are on the rise. Many leading names in iGaming have observed that combining casinos and sportsbooks significantly boosts project performance and user engagement.

Casinos enhance betting businesses, and sportsbooks complement casinos, creating a winning combination in the iGaming arena.

Why is now an ideal time to become a bookie? The market size is growing each year, with forecasts predicting the online gambling market will surpass $110 billion by 2026. Notably, sports betting accounts for about 30-40% of the market, making it a substantial segment.

With aligned interests and favorable statistics, the only question left is: how do you start a sportsbook? We provide the answer in our new high-level roadmap for those planning to launch a successful sportsbook.

Sportsbook Software Selection

Once the decision to start a sportsbook has been made, it's time to choose professional software. Bookmakers have two basic options: 

• To develop their own platform

• To buy a complete solution from a supplier

• 
  

Creating Your Own Sportsbook Platform

Operators who choose to develop from scratch must have exceptional experience in operating an iGaming business and a thorough understanding of online gambling software requirements.

When operators create their own solution, they are responsible for all aspects of running a sports betting business, including assembling a full team of developers, managers, risk analysts, and more.

Developing an in-house solution is a significant financial and resource investment, which does not always guarantee the expected results. Bringing the solution to market typically requires at least a year of preparation, if not more, depending on the circumstances.

Purchasing a Turnkey Solution

If an operator possesses a strong background in iGaming, platform development can be a good way to scale the business. However, for the first sportsbook, it is better to choose a proven sports betting solution from a reliable provider.

 The easiest and least expensive way to gain expertise in operating a sportsbook is to use an off-the-shelf solution.

Why is it beneficial?

1. Cost-effective. Operators avoid costly development and maintenance of separate teams as well as long and expensive negotiations with payment systems and data providers.

2. Fast launch. The time to market for the kodedice Sportsbook, for example, the count goes to weeks. The creation of the sports betting software core can take at least a year, without factoring in other preparations.

3. Reliable. Choosing an off-the-shelf solution means you are buying more than software; you are getting a team, a history of excellence, and vetted technical know-how.

Therefore, before becoming a bookie, choosing a reliable software supplier is crucial. How can you choose the right partner?

• Check the solution customisation. Ensure that you are not just sold a template solution, but a flexible platform that can adapt to your needs.

• Consider the access to supporting services. A player support service, designers, risk management team, technical specialists – these people are directly responsible for your reputation in the market. It's handy when the supplier takes care of this.

• Mind the price-to-value ratio. Choosing an off-the-shelf solution saves the operator a lot of money and time, so it makes sense not to select the cheapest solution, which could lead to overpayments and reputational damage in the future. 

  
  

Finding a Data Provider

Sportsbooks cannot operate without data providers – no odds, no wagers. It is crucial to select a reliable sports data supplier who can help online bookmakers capture market share and avoid costly risks.

Choosing a data provider for sports always involves risks. If you decide to become a bookie without prior experience and choose a non-professional provider, you may face incorrectly calculated odds or delayed calculations, leading to financial and reputational losses

How to choose the right sports data provider?

• Data integrity and accuracy. Here you risk not only time and money for data verification, but also the trust of bettors if wrongful information gets to the platform.

• Methods and formats for delivering data. Most data providers offer a variety of formats and ways of implementing this data –⁠ choose the one that is right for the platform and business as a whole. Make sure the documentation is clear and transparent – it will determine how easy and cost-effective the integration itself will be.

• Risk management. The tool enables operators to identify and manage potential risks. This is an essential component of a successful business and helps to make decision-making processes transparent and supported by facts. Unless the data provider has a risk management team and solution, the operator will have to form their own.

• An opportunity to stand out. Audiences value data exclusivity. There is the option of generating unique sports data yourself, but this will add to the product's price, as will the development time and support efforts. This is why choosing a provider that gives you exclusive sports data for your bookie business is reasonable. Exclusive events and data will allow you to make an offer your players won't refuse.

• 
  

If a bookmaker starts a sportsbook from scratch, the integration with a data provider is the operator's responsibility (often a fee-based service).

The contract is usually filled with caveats, which can be confusing even for experienced operators and can lead to significant costs. After signing the deal, operators often find that it takes time before the data from the provider can actually be used.

The Kodedice Sportsbook collaborates with several data providers, including e-sports providers. We have a strong risk management team and take full responsibility for data quality. This allows our clients to focus on growing their businesses without being distracted by operational duties.

Website Design

Modern iGaming cannot overlook the importance of web design, as the front-office is the first thing players notice when they enter a sportsbook.

Players have different priorities: some seek the availability of certain events and crypto betting, while others look for unique bonuses. Although design alone isn't the primary criterion, a poorly designed website can drive players to switch bookmakers.

What kind of design works best for a betting platform? It should be fast, intuitive, and functional. A user-friendly interface means simple and intuitive navigation with clear accents.

If a bettor struggles to find the "register" button or the bonus section, they will quickly leave the site. Sorting and filtering options enhance the bettor's experience.

Second, the design should be relevant to the niche. Color combinations, illustrations, and an appropriate font for the company name and slogan contribute to the overall look and feel of the iGaming project.

Third, ensure the site meets business and marketing objectives, and is eye-catching and engaging. When bettors visit the site, the actions they seek—registration, betting, current events—should be clear and properly highlighted.

Finally, and most importantly, focus on mobile versions. The majority of players (75%) use smartphones for gambling. A user-friendly and well-adapted mobile website is crucial for bookmakers, as important sporting events can catch bettors away from their computers. Today, lacking a mobile version means missing out on a large segment of your audience.

Whether developing a solution from scratch or choosing an off-the-shelf solution, consider these criteria. If you opt for an off-the-shelf solution, choose one where the design can be customized to meet your needs.

We offer custom-designed solutions based on statistical analysis, research, and experience. Operators can also implement their own designs via an API. The Kodedice team is always willing to go the extra mile to make the website design stand out.

Legal Setup and Payment Integrations 

One of the major stumbling blocks to becoming a bookie is setting up the legal infrastructure. Traditionally for all iGaming businesses, the issue of choosing a jurisdiction and licence becomes the most difficult and expensive part. 

It depends directly on the operator’s business objectives, the audience, and the countries the business is targeting.

Obtaining a licence on your own requires:

• A professional team with strong legal expertise and background in iGaming

• Time (getting a licence may take from one month to a year)

There are similar challenges with payments here: lengthy and exhausting negotiations with payment service providers (PSPs) can be common.

A few integrated systems are insufficient: to ensure a good player experience, it's crucial to offer a variety of payment options, including e-wallets and cryptocurrencies. Players should have the flexibility to choose how they deposit and withdraw their funds.

Additionally, to operate a sportsbook, operators must identify which payment systems their target audience will require. This depends directly on the markets the sportsbook aims to serve. Such details are vital for players and demand the operator's attention and involvement.

Investing in a team and navigating long bureaucratic procedures deprives bookmakers of their most valuable resource: the ability to quickly enter the market and test their strategies.

In many cases, it is more advantageous to opt for a white label sportsbook solution that includes a set of licenses and payment methods, thereby delegating the legal complexities to your solution provider.

Complete off-the-shelf solutions come with legal infrastructure and support from lawyers, saving bookmakers both time and money.

For operators with an existing license looking to enhance their platform, a sophisticated sportsbook integration can be a wise move. It simplifies the process of offering a broader range of betting options to players, enriching their experience and adapting to evolving iGaming market trends—all while avoiding the need for additional licensing.

Sports Events and Sports Variety

Probably the only instance in which ‘the more the better’ rule works without fail. To be more specific, in order to start a successful sportsbook, it is necessary to offer betting on all the top sports. Current examples include: 

• Football 

• Tennis 

• Basketball

• Ice hockey

• Volleyball

• Handball

• Golf

• Rugby

• Boxing (MMA)

• e-sports

For those looking to become a bookie, the last point requires special attention. Leading esports events such as The International for Dota 2 and the Majors for CS:GO draw hundreds of thousands of views. Offering esports events and thematically-related bonuses will pull in a good number of fans, boosting sportsbook traffic.

Overheads

The costs will vary significantly depending on whether bookmakers opt to develop a product from scratch or rent an off-the-shelf solution. Typically, a white label solution includes a range of services such as the software itself, initial setup, and technical support.

Those interested in developing their own product will need to rely entirely on their own resources and expert team, necessitating substantial investment in hiring and training.

Since providing a precise and universal estimate for starting a sportsbook is challenging, we offer a generalized cost comparison between an off-the-shelf solution and custom development.

Developing Marketing and Bonus Policies

The previous steps made your sportsbook a very attractive proposition but you still need to get your players onboard. Hence, it's time to start creating a marketing strategy, particularly positioning. This step includes: 

• The positioning statement (a brief statement of the brand's values)

• A critical analysis of competitors and the current market position

• The development of a unique selling proposition 

In order to handle both external and internal marketing effectively, a business needs a  fully experienced marketing department. Managing PR, SEO, tournaments, and bonus policies requires a very experienced team. 

The team behind the Kodedice Sportsbook excels in shaping a brand’s strategy, continuously enhancing, updating, and complementing your market presence. However, attracting traffic to the project remains the operator's responsibility.

Anyone who has ever placed a bet on a sports event knows how rewarding bonuses are for players. Therefore, the bonus policy of the sportsbook significantly influences bettors' choice of a betting site. Pay attention to the types of bonuses you offer, organize themed tournaments, and find ways to integrate individual rewards into your players’ sports betting journeys.

A friendly reminder: while bonuses create good engagement, don't forget about the powerful anti-fraud team behind the sportsbook. Naturally, the larger the brand, the more bonus hunters and other scammers it attracts. Fraudsters also pay increased attention to newly launched projects.

To avoid losing money and reputation to fraud, choose a software provider with strong expertise and experience.

Almost last but not least is marketing promotion. With a fast, stylish, functional website and a well-constructed bonus system, bookmakers already have a solid foundation for promotion. To make the market aware of your new sportsbook, you'll need more media exposure initially. This usually involves planning announcements, interviews, press releases on major iGaming forums, reviews, and news platforms.

In addition to SEO, banners, contextual advertising, and affiliate marketing should also be utilized. This is the core of iGaming. Sportsbook promotion involves certain subtleties and continuous restrictions from search engines, making affiliates increasingly influential each year. Choose a software provider that integrates with affiliate marketing solutions and fully leverages them.

Starting a Sportsbook: Key Takeaways

1. The chances are that any successful iGaming brand you can think of combines both casino and sportsbook services with a single seamless wallet for both. This winning combination better covers the needs of the audience, so always consider the brand expansion perspective when launching your sportsbook. 

2. Having already touched on the team many times, mentioning it again is also not superfluous. It takes a lot of investment and sustained expertise to construct a complete team from scratch. Instead, trust a strong ready-made team and gain experience from them. The operator decides which tasks can be handled by their team and which should be delegated.

3. Consider ways to develop your brand from the very beginning. Invest in VIP support, gamification, and AI tools. kodedice values innovation and high-quality customer service. The brand’s product portfolio offers customers the benefit of a one-stop solution in terms of software, payments, marketing tools, and support.

   
   

Explore the Sports Betting Industry

Opening a sportsbook is a serious endeavor that requires time, research, and preparation. The success of a sportsbook is not determined by the website or the bonuses, but by the competency of the team supporting it.

Bookmakers' experience indicates that partnering with a full-service team skilled in all aspects of iGaming brand management is the best way to start a sportsbook. Our Sportsbook team is ready to support you on your journey.