Three development approaches:
Completely customized solution. The cost of this option can be found on the example of Bet365. The site is registered in Gibraltar, so the registration was paid 30 thousand dollars, 100 thousand dollars a year is spent on taxes (the site has many licenses, and not just for sports betting). Website development cost 80−100 thousand dollars (+ the same amount per mobile application). Several million dollars was spent on promotion.
Thus, the development of a site like Bet365 will cost from 300 thousand to 3 million dollars. Focusing on a small niche will reduce marketing costs, but this will have almost no impact on the cost of developing a website. As an advantage of this way, it is worth noting that you will fully control the process and will be the owner of the program code.
Using White Label. Their price ranges from 10 to 350 thousand dollars. The cost of expensive options includes the site itself (a template with a limited ability to customize the design and functionality), application, payment processing and promotion. So you will only develop a design and general guidance. In return, you will have to pay a certain percentage of gross income or profit. In general, this is the best option to run your site if you have a limited budget.
Become a Licensee Licensee. The most budgetary approach to meet the amount of from 5 to 60 thousand dollars. Speaking in essence, you will work under someone else’s license as an agent to attract customers in exchange for a certain commission on their expenses. That is, you will be engaged in marketing and traffic to another site.
No matter which path you choose, make sure the software meets the following requirements:
- secure multi-currency currency gateways;
- there is customer support and customer relationship management system (CRM);
- you understand how the betting system works;
- large coverage of various types of rates;
- software licensed.
In which country to get a license
Building a sports-based business on the Internet is not an easy task, requiring a lot of money and a corresponding license.
Such a license can be obtained not everywhere, since in some countries such a business is prohibited, while there are countries where not only entrepreneurs are punished for online betting, but also players. These are mainly countries of the Middle East and Asia. In Europe, bets are completely banned only in Poland.
The ratio of countries to online sports betting
Learn about the relationship of a particular country to online betting on the «Simon’s Guide to Online Gambling Legal Status and Laws
» page. It is periodically updated, and there is an interactive map. In the US, attitudes towards online betting are determined by individual state laws.
To find out about current legislation and the latest news on this issue, please visit gamblingcompliance.com
. An interactive map is also present.
As a provider of gambling services, your company must apply for a license
in the selected jurisdiction. Consideration of the issue by public authorities will take from several months to a year (depending on the country).
When choosing jurisdiction, consider the following:
- state reputation (attitude to rates, corruption, stability of the regime);
- licensing requirements for legal entities and authorized capital;
- the cost and duration of the procedure for obtaining a license;
- taxes and other fiscal charges.
Most online gambling companies choose the following jurisdictions:
- Curacao. There are no divisions into types of bookmakers, casinos and game slots. All of them receive one type of license. 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. In general, this is a great option, as the authorities of Curacao seek to issue permits as quickly as possible, in order to increase tax revenues.
- Costa Rica. A stable country, which is happy to hand out licenses to conduct a betting business, but with two conditions: first, local residents should not use its services, which is achieved by blocking all IP addresses of the country; the second is the physical presence of your company in the country. The cost of the license is 12 thousand dollars a year. There are no tax liabilities or exchange controls.
- Isle of Man. Registration of all types of gambling entertainment is possible. The cost of the license depends on the structure of the company and the type of the form, the minimum is 50 thousand dollars. If the company's revenue is less than $ 20 million, tax deductions are 1.5%.
It is advisable to place servers (or use the services of hosting companies) in the country of registration. So there will be fewer problems with jurisdiction and laws protecting the rights and personal information of users.
How to choose a payment service provider
To start a betting business,
you must enter into an agreement with several payment system providers so that players can easily and quickly deposit and withdraw money from your platform. For convenience, it is recommended to provide users with as many payment options as possible. At the same time, it is necessary to make a bet on payment services that understand the conditions of specific regions and adapt their services to these conditions. In the table you will find a comparison of the three most popular payment systems.
You can use these services or others. The choice should depend on the preferences of your target group and availability in the selected region. Now it is also worthwhile to connect I/O with the help of popular cryptocurrencies.
What features should the site have
User panel features:
- Login. The ability to register and authorize in several ways: login and password, email and password, integration with accounts in social networks.
- Choosing a bet. Simple and quick selection of the sport, team, player, events, which you can bet on at the moment. A set of such things should differ depending on the sport. It is important to realize the ability to bet on the result of a specific player, and not just the team as a whole.
- Broadcasting game / matches. The ability to watch the match in real time on the site or through the application site. Increases user experience and allows you to use more business models for earnings.
- Bid Help. A simple guide with illustrative examples (screenshots + video), how to bet and how to enter and withdraw money. Also, a tooltip system should be developed to assist the user in 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 chosen sport. It must be concise information about the results, achievements, weaknesses and strengths.
- Match schedule. A calendar of future events will help users plan their activity at rates. The schedule must be contextual: if the user selects football bets, then the football matches schedule must be next.
- Choice of bet type. The set should depend on the specific sport and user requests.
- Communication with other participants. Players should be able to communicate in real time to discuss bets, events, predictions, and more. It can be implemented in the form of chat, forums and groups in social networks.
- Bid Results. The amount of winning or losing on all the bets made, plus the history of bets on sports and types of bets.
- Payment system. The ability in one or two clicks to enter or withdraw money from the system. Payment gateways must be integrated with the site and mobile application.
- Multi-language support. The more of them, the greater the reach of the audience.
- Match Summary. Detailed match statistics for the team as whole and individual players. It will give users the opportunity to analyze the effectiveness of each player and make a forecast based on it for the next games.