In our last tutorial on how to start an Online Gaming Operation, we went over the preparation and research. Therefore, you should have enough data to make a clear and concise decisions about where to setup your gaming operation. However, you are only part of the way there. The next step in Starting an Online Gaming Operation is about building a strong foundation.
Building an online gambling business is not something that can be done overnight. Even after your business is up and running, it will not mean you are successful. This is because a successful sportsbook business is one where you and your clients are both happy with it. In order to achieve these goals, more preparations are in order.
Now that the research part is over, let’s go into the paperwork territory. Ok, not necessarily paperwork but more into the bureaucracy and management of starting your operation. Yes, we are talking about obtaining a gambling license, the banking aspect of your sportsbook and the budget.
Starting an Online Gaming Operation – A Strong Foundation
Depending on the type of operation you intend on running and where will dictate the use of a gaming license. For example, if you chose to have a white label sportsbook operation, then it should already come with one. This is because when you use a white label sports betting solution, you become one of their licensees.
Therefore, obtaining one is not necessary in some cases. Furthermore, if you intend to operate in a country without any jurisdiction, one is also not necessary.
Just keep in mind that having a gambling license is a good thing. This is because it helps to bring players because they have more confidence in your business. However, it can be expensive running between $30,000 per year and ore depending on where you get it.
Some popular places to obtain a gaming license are in Curacao, Philippines, Malta, Alderney, Isle of Man, and Gibraltar. It takes a few months to a year to obtain a gaming license, depending on the country. Before choosing a specific jurisdiction, please be aware of the requirements, costs and taxes.
The next step is to figure out how you will receive deposits and give payouts. If you intend on being a college bookie, you probably can just deal with cash. The same apply if you intend on having a small business with people you know. However, if you are looking to open a larger business, then you will need some kind of banking management system.
How difficult finding the right banking options for your online sportsbooks will depend on the jurisdiction you are in. In general, as long as you have some kind of business license, it will not be a problem. However, the main question is what banking options you want to offer and the cost.
For example, if you want to be able to process credit cards, the fees are somewhat high for gaming businesses. On the other hand, there are many alternatives such as cryptocurrencies which are less expensive and easier to setup. Choose wisely.
Budget for your Sportsbook
The next part is the budget for opening a sportsbook and how much money you need to be a bookie. This will depend what kind of operation you will operate and is a simple matter of calculations. Our Sportsbook Revenue calculator can help with these calculations.
Of course, by using our Sportsbook pay per head services, the budget you need will be much smaller!