EVERYTHING YOU NEED TO KNOW TO RUN A SPORTSBOOK IN ORDER TO BECOME A BOOKIE

Are you interested in opening your own sportsbook? You're in luck if so! We will provide you with advice on how to get started in this blog post. It is crucial to keep in mind that managing a sportsbook is challenging because there are numerous factors you must consider. But with the proper preparation and execution, anyone may succeed in this industry. Let's begin, then.

Describe a sportsbook,

A sportsbook is a service that allows customers to wager on the results of sporting events. The results of games, the number of points earned in a game, the winner of a certain matchup, and other propositions are all subject to wagering.

In general, the sportsbook earns profit by taking a cut of winning wagers, but it frequently also provides other multiple bet types, such as Point Spread, Money Line, Under/Over, and others.

Let's examine whether you should open your own sportsbook now that we understand what one is.

Even if you're not a die-hard sports enthusiast, there are a few major reasons it would be worthwhile to create a sportsbook app. For starters, sports wagering is a significant market and there is undoubtedly a lot of money to be gained there. But in addition to the possibility for profit, there are also other solid reasons to build a sportsbook app and issues you should be aware of.

One reason is that many sports fans have a fierce loyalty to their teams and adore nothing more than making bets on them to win. It would be easy and simple for them to do this if they had a sportsbook app, which is fantastic news for you as the bookmaker.

Starting a sportsbook can be a wonderful way to interact with your consumers and entice them to use your app repeatedly, which is another important factor to consider. If you provide favorable odds and spreads, bettors will keep coming back to put wagers. And if you include some more features like statistics, leaderboards, and sports news, your app will be even more appealing to users. The secret is to always consider adaptations and to make sure that your business stands out and can draw customers in.

Doesn't everything sound wonderful? Sportsbooks are a dangerous industry with a lot of laws, therefore it's difficult. If you go about building a sportsbook the wrong way, you can end up losing a lot of money and creating a product that the government might decide to block or that isn't competitive.

How to create your sportsbook, then?

We'll repeat it several times today: if you're thinking about developing a sportsbook app, only custom solutions should be taken into account. There are, of course, other ways to create such a product, and we'll introduce them to you in due course. Please keep in mind that each of the aforementioned solutions has benefits and cons that you should consider carefully before beginning to invest in a product.

Why operating your sportsbook under a white label is a bad idea?

Running your sportsbook under a white label is not the greatest option for a few factors.

The flexibility to modify your sportsbook to meet your unique requirements and preferences may be constrained by white labeling. The features and functionality offered by the site, as well as its overall appearance and feel, can be outside of your control. Due to this, it may be challenging to design a user experience that will entice users to return. Whitelabel sportsbook providers often offer a wide range of customization possibilities, but you should be aware that they frequently offer a collection of ready-to-use templates and the ability to alter the site's CSS. If you want to change things or need some degree of adaptability.

Additionally, working with a third-party provider can be time-consuming and stressful. To get things done, a lot of back-and-forth communication is frequently required, which can significantly slow down the process.

Last but not least, white labeling typically has higher costs and lower profit margins. This is so that they can apply a fixed monthly operations fee in addition to receiving a portion of the revenue in exchange for their services.

Develop your sportsbook with a custom solution

The most advantageous solution when it comes to developing your own sportsbook is to create the UI from scratch. Why is that so? Let us explain.

Advantages:

  • you’re in control of the product,
  • you can introduce any changes at any stage of the development process,
  • you’re not limited to the functionality of the product.

In other words, by choosing a custom solution, you can be absolutely sure that the final product fits your needs 100%. You won’t have to look for any workaround solutions just because something is missing or doesn’t work as it was supposed to.

Of course, building a sportsbook from scratch requires significant time and effort. 

As it is impossible to create every little part of the sportsbook in a timely manner because of the complexity, you have to be aware of a set of integrations to data providers, odds providers, payment gateways, KYC verification suppliers, risk management systems, etc. 

In this way, you receive a solution that provides you with services that you really need, on the basis of which you can build virtually any kind of bet type or feature you desire. 

You can replace a provider whose price is too high with another one quickly, or you can consider replacing the provider with a sub-product of your own. The most prominent advantage is the speed of change. 

You’d be able to build your product in an agile way, not waiting for your provider for months to develop an update for you, plus if your idea is unique and makes a difference on the market, you’d be sure that the provider won’t sell it to your competitors. The IP is yours.

How to run a sportsbook –  common mistakes

Now that we’ve talked about some of the advantages of running your own sportsbook, let’s take a look at some of the most common mistakes bookies make with their sports book products.

#1 No customization included

The first mistake is not to include any customization in the product. This can be a big mistake, especially if you’re targeting a specific market. Remember – if you want to be able to adapt to any market, custom sportsbook solutions are the way to go.

Without or with very limited customization options, your sportsbook will potentially look and feel like any other gambling site out there – and it makes a big turn-off for potential customers looking for a more personal and unique experience, not only custom odds or markets.

Include customization in your product so that you can offer your users a gambling experience that is tailored to their needs and preferences.

#2 No filtering or favorites options

The second mistake is not including any filtering options in the product. If you’re running a sportsbook that covers multiple sports and events, you can’t expect everyone to be interested in everything. That’s why it’s important to give your users the ability to filter the content and only see what they’re interested in.

By including filtering options, you can make sure that your users always have a good experience with your product – and that they keep coming back for more.

Without filtering options, your users will have to scroll through a long list of events and bets to find what they’re looking for. This can be very time-consuming but also frustrating, and it will only make them less likely to use your product in the future.

#3 Limited offer

The third mistake is to offer a limited legal sports betting product with no integrations. If you’re running a sportsbook, you should make sure that it’s integrated with as many different providers as possible. This will give your users the ability to use your product in a variety of different ways – and it will also make it more valuable to them.

For example, if you are to advertise your app as an ultimate football betting app yet you only offer four or five leagues to bet on, your potential customers will be turned off by the lack of options.

On the other hand, if you’re running a sportsbook that is fully integrated with all the major providers, your users will be able to use it to bet on any sport or event they want. And that’s exactly what they’re looking for.

#4 Poor UX and design

The fourth mistake is to have a poor UX and design. Remember – your sportsbook is a product just like any other, and it needs to be designed with the user in mind. If your product is difficult to use or understand, your users will quickly get frustrated and they’ll look for something else.

Make sure that your sportsbook has a good UX and design so that your users can always find what they’re looking for. You want them to keep using your app, so make it as easy and enjoyable to use as possible.

Pay attention to elements such as:

  • the navigation
  • the layout
  • the betslip
  • the typography
  • the color scheme
  • the icons and illustrations

All of these elements play a role in the overall UX and design of your product. Make sure that they’re all up to par so that your users have a good experience with your sportsbook.

#5 No advanced rewards and bonuses system

The fifth mistake is not to include a reward system in your product. A reward system is a great way to motivate your users to keep using your product. It can also be used to encourage them to invite their friends and family to join in on the fun. Offering rewards can be one of the quickest ways to actually drive traffic and scale your sportsbook business – as nothing works better than word of mouth.

Including a reward system in your product will show your users that you’re invested in their experience – and that you want them to be your loyal users and spread the word about your product.

There are a few different types of rewards systems that you can use:

  • discounts (second bet 50% off, for example)
  • free bets (if a particular user tends to be a loyal one, you can send them some free bet opportunities from time to time)
  • VIP memberships (access to more detailed statistics, for example)
  • bet without a risk/cashback (offering bets with cashback in the case of a loss) 
  • start bonus (upon signing up, special offers or bets)
  • deposit bonus (a user deposits a certain amount and gets a bonus on top of that)
  • occasional bonus (e.g. if a particular user’s favorite team plays a match, the user can receive a special betting offer)

Choose the one that you think will work best for your product – and make sure to include it in your sportsbook. Try to come up with a system that works well for your product and your users, and that will give them an incentive to keep using your sportsbook.

#6 Poor performance

With running a sportsbook, there are going to be times when you will have to eat some losses. This is part of the business and you need to understand that before getting into it. However, if your bookie operation is consistently losing money, then something is wrong. You need to take a close look at what’s going on and see where you can make some changes.

It’s important to offer a product that is high quality and well-performing. If your sportsbook is constantly crashing or if the odds are always off, your users will quickly get frustrated and they’ll look for something else. Make sure that your sportsbook is running smoothly and without issues on most of the available devices so that your users can always count on it.

#7 Complicated registration and verification process of new users

The seventh mistake is to have a complicated registration and verification process for new users. If your potential customers have to go through a long and complicated process just to create an account, they’re going to get frustrated and they’ll look for something else. Make sure that your registration and verification process is quick and easy so that your users can start using your product as soon as possible.

The registration and verification process is one of the most important parts of your sportsbook. You want to ensure that it’s easy for your users to sign up and start using your product straight away. Sometimes it is a matter of one unnecessary field in your registration form that can make all the difference. So, keep it simple and easy for your users – and they’ll be sure to appreciate it.

Be aware that verification appears differently in this kind of app than in other apps or solutions. Users should be able to attach documents without hassle (many different documents may be required to complete the registration process), and these documents are stored with uttermost security. 

If even one step in your sportsbook does not meet that criteria, users may choose a solution offered by your competitors instead. Integration with a modern and trusted KYC provider should be high on your list of priorities when building a sportsbook app, then!  

#7 Laggy statistics

The eighth mistake is to offer outdated statistics and results on your sportsbook. Here we refer to a delay of a few seconds. If the delay is longer, the worse. If your users are constantly seeing old data, they will be sure to use other products that offer more up-to-date information. Make sure that your integration with stats and odds providers is always as performant as it’s only possible so that your users can always rely on your product.

This is especially important if you’re running a live betting sportsbook. You can potentially loose on a delay. Just imagine that you’d allow somebody to make a bed on something that has just happened. A typical platform provider would block such an attempt but you could never be sure and a multi-layer validation would have to be implemented to secure your business. On the other hand, If your sportsbook is constantly lagging behind, you keep refusing bets, your users will quickly get frustrated and they’ll look for something else.

#8 Lack of trackers in your sportsbook app

Trackers can make or break your sportsbook app. They give insights and important information needed for placing the right bet at the right time, so users appreciate both basic and advanced trackers in-app. 

The most popular trackers include:

  • changing odds
  • popular events
  • scores and courses of sports events (including injuries or substitutions)
  • rate lists
  • bonus lists
  • history of bets and scores

Not only do they make betting easier, but they also make it more effective. 

A lack of trackers on your online sports betting site can cost you, users, in long run. 

Players who have more information about the games become more analytical risk-takers, which is good for each bookmaker as they can generate more bets and spend more money in your app or on your betting site.