What do businesses consider before launching a sports betting site in 2024?
The rapidly growing gambling industry has become a magnet for businessmen who want to invest in a profitable business. “To launch your iGaming website, you need to understand market trends, regularly analyze competitors, meet player requests, and be aware of new technologies,” says the BetB2B expert.
In 2022, Statista reported that the worldwide iGaming industry reached a worth of US$63.53 billion. Predictions suggest this number will surge to US$184.28 billion by 2032, marking a remarkable 190 percent growth within a decade. Additionally, the global market value for sports betting and lottery sectors was estimated at US$235 billion during the same year.
Due to the lucrative nature and accessible administration of iGaming websites worldwide, an increasing number of entrepreneurs are venturing into the gambling industry by launching their projects.
Market research
Choosing a market to work on is one of the most important tasks, the solution of which affects all aspects of the iGaming business.
The global betting and gambling market can be divided into the following regions:
- Europe (Germany, UK, France, Italy, Russia, Turkey, etc.)
- Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria and South Africa)
- Asian-Pacific area (China, Japan, Korea, India, Australia, Indonesia, Thailand, Philippines, Malaysia and Vietnam)
- North America (United States, Canada, and Mexico)
- South America (Brazil, Argentina, Colombia, etc.)
It is necessary to determine which market the project will be aimed at, which options will be prioritized, and which audience the website will be aimed at.
Prior to initiating any planning, it’s imperative to conduct a thorough analysis of player needs and revenue forecasts from both casinos and bookmakers. This comprehensive examination will provide valuable insights into whether to establish an online casino, a sportsbook, or perhaps a synergistic blend of both ventures.
Definition of Target audience and Player preferences
“By delving into these aspects, you can adeptly customize your business to stand out and effectively cater to the demands of your target audience,” notes an analyst at BetB2B.
To gain an in-depth understanding, it is recommended to study the following aspects:
- Demographic features – the average age of the target audience gender.
- Economics – GDP will establish the financial capabilities of the target market. Based on this, it’s possible to make a better estimation of the project’s direction.
- Technological capabilities – assessing the level of development of this criterion will help to understand how accessible online games will be in a particular region.
- Payment preferences – common payment methods, choice of cryptocurrencies.
- Culture: preference in sports, attitude towards gambling, and openness to this area of the population.
- casino games and betting – specific content that matches target markets and the inclinations of potential players.
Regarding age groups, the majority of players are young people aged 21-25. In percentage terms, youth in this age group account for 80%. Gambling fans are mostly men—59%, although women are no less passionate about online casinos—their number is 45%.
The market anticipates a surge in the player base, which is expected to reach 243.2 million individuals. IGaming player penetration is forecasted to rise from 2.5% in 2024 to 3% by 2028. Projections suggest an average revenue of $550 per player.
From a cultural point of view, each country is individual. In Africa, the gambling industry has been widespread for many years. Mobile games and blackjack are often preferred here.
In Asia, gamblers are more interested in skill-based games, depending on the country. Britain prefers slots and chooses football for sports forecasts. There is also a tradition of betting on horse races, just like in Ireland. There are many more differences between different regions that need to be considered.
Licensing
Obtaining a license is a key stage that determines the launch of the project. If we talk about Europe, several jurisdictions offer licenses.
- Curacao. Gambling and betting is a key economic sector. Licenses began to be issued here back in 1996. The license covers all forms of gambling and betting business.
- Cyprus. iGaming licenses are issued by the Ministry of Finance.
- Gibraltar. Issues licenses for online gambling and betting since 1998. It is one of the leading jurisdictions for iGaming.
- Isle Of Man. The license is issued by the Gambling Supervision Commission. One of the most expensive licenses to operate within.
- Malta. The largest iGaming jurisdiction in the EU. Licenses are issued by the Lotteries and Gaming Authority (LGA)
Also, for activities in the iGaming industry in the world, popular jurisdictions for licensing are Panama, Alderney, Antigua and Barbuda, Belize, Costa Rica, and Kahnawake.
When choosing a jurisdiction and license, it is important to consider
- experience
- types of games
- expenses
- license term
- license cost
- license renewal
- tax fees
All of this can significantly impact the project budget.
BetB2B: Checklist of steps for opening a betting business
The list touches on critical launch moments that will help you figure out what steps you need to go through on the way to creating a gambling website.
- Market research and planning. In-depth research, trend analysis, identification of target audience and competitors. Utilizing this data, a comprehensive business plan can be formulated, including clear objectives and financial projections.
- Compliance with legal and regulatory requirements. Research of local legislation for betting operators.
- Stable financing. Securing financing through personal investments, debt funds, and other options that will cover expenses.
- Website and mobile application development. It is important that in the world of advanced technologies, players have access to games not only on PCs but also on mobile devices.
- Choosing a ready-made platform — choosing a reliable software supplier with the necessary package of solutions, including a high degree of security, innovative technologies, tools for data collection, and other components.
- Marketing strategy — search engine optimization, traditional advertising, social media marketing, display advertising, reviews, bonuses, etc.
- Quality support— support service through various communication channels.
BetB2B: iGaming Software Provider
Software is an important element in the development of a successful sports betting project. Choosing a partner is key, so you should prioritize experience, reliability, and compliance. “The software provider must have an extensive betting portfolio, including all the main components,” BetB2B says, based on its own experience.
A high-quality platform provider will be filled with the following functions:
1. Bets. Large portfolio of sports. Convenient selection of events and sports on which players can bet. Various betting options: on the result, on specific events during the game, etc.
2. Information about teams. It is important to provide players with complete information about teams, players, results, and achievements.
3. Schedule of matches and tournaments by sports. Such information will enable players to plan their bets.
4. Live matches. Players should be able to easily follow matches in real-time on any device. Such broadcasts provide an opportunity to engage players.
5. Betting results. The history of betting activity is important information for every player.
6. Hints. It is important to accompany the player while betting. Give him simple tips on how to place bets. Especially for new players.
7. Community. The ability to communicate with other players and share experiences strengthens attachment to the brand.
8. Payment system. A quality betting platform always offers a wide range of payment options. This is important for international brands that operate in several geographies. The payment system should include both local payment methods and modern crypto solutions.
9. Multilingual functionality is highly sought after in betting platform providers as it enables them to showcase their interface in various local languages, thereby unlocking numerous opportunities for engagement and accessibility across diverse markets.
10. Safe environment. Problems that website owners may encounter are fraudulent interventions and security vulnerabilities. iGaming is constantly evolving, and technological advances help deal with scammers and hackers, whose skills and technologies, unfortunately, are also constantly improving.
“It is important to understand that a reliable software provider strengthens its product, integrates modern tools into it, such as artificial intelligence, analytical functions, etc., which will prevent the influence of fraud attempts”, says the BetB2B expert.
Article provided by BetB2B – iGaming platform provider
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