Sportsbook

Launching your horse racing sportsbook might sound too difficult, but actually, it is very doable. Even though the process of becoming a bookie is difficult, if you do it carefully and step by step, you’ll be able to launch your very own profitable business.

Sportsbooks work by taking a bet as well as commission from the sports bookie. The small fee is taken by the bookie from people’s winnings, and it is a system that ensures a guaranteed sum of money for the bookie at the cost of a punter’s bet.

What is a Bookmaker?

Sportsbook or bookmaker is a term we use that refers to an establishment that accepts and pays off bets on horse racing for example. In some cases, in addition to wagering, bettors can also ask the bookie to lend them money.

The bookies need to constantly adjust the odds accordingly to maintain balance in the books so that there is an equal number of bettors on wins and losses.

How Much Money Do You Need to Get Started?

Well, since bookmakers exist based on the margin and win/loss ratio of their bets, maintaining a steady cash flow is the most important thing in the business. This usually suggests starting with a larger sum of money, just to keep your business running.

However, not everyone can invest hundreds of thousands of dollars into a new business, and fortunately, you don’t need that much when starting your horse racing sportsbook.

A sportsbook also has a lot of expenses, such as utility payroll, software, rent, and so on. However, paying all the winning wagers is the bookie’s primary responsibility. However, they are using the money from all the losing wagers to pay out the winning wagers.

Starting a small horse racing sportsbook, where a lot of casual players will bet, doesn’t require a big lump of money. Depending on your clientele, a $10,000 initial investment should be enough to get you covered for the first couple of months.

How to Start Your Own Horse Racing Sportsbook

Before digging deeper into this idea, your first step should be to find out whether or not starting a betting business is. Some countries have specific laws regarding sportsbooks and casinos, and some types might be legal and others not so much.

Also, you should bear in mind that it takes time to build a successful business like this. Famous sportsbooks like TwinSpires have grown by making partnerships with great events in the industry, like the Kentucky Derby, but they are doing it for years and years.

Nonetheless, after you’ve established that it is legal to open a sportsbook, it is time to get to business and create your business plan.

Set Your Lines

The most important thing when starting a horse racing sportsbook is setting the right lines. You’ve got two options here:

  • You can set the lines yourself (which is difficult are requires expertise)
  • You can copy the lines from another already acknowledged bookie

Fortunately, nowadays it is fairly easy to get access to tons of bookie sites and compare their betting lines.

Choose Your Commission

Deciding how much to charge is another important step in the business. The amount to charge a vig depends on the sport in question. Since we are talking about horse racing, a 100% to 110% ratio is typical.

Find a Sports Betting Platform

To ensure that your business operates smoothly without any software mistakes or bugs, you need to partner with an established software developing company.

There are many sports betting platforms to choose from, and you have to pick one that satisfies your and your customer's needs.

When choosing a platform for horse racing betting, you need to keep an eye on a few different things, such as:

  • Included bet types
  • Various payment methods
  • High-level security and secrecy
  • Easy-to-navigate User Interface
  • Professional Customer support
  • Multi-language support

Additionally, the platform also needs to meet your business needs, such as:

  • Having a risk management tool
  • Marketing tools panel
  • Comprehensive reporting tool
  • Easy-to-manage backend

Apply for a Gaming License

Since sports betting is regulated by the government, in most cases you’ll need to obtain a gambling license, especially if you decide to enable online betting. You need to take a look at how your country regulates the gambling scene and where you can obtain your license.

Publish a Website and Start Attracting Customers

After you’ve finished all of the steps above, it is time to create your sportsbook website. Even if you are launching only physical betting shops, you’ll need a website to promote your services.

If you think that the hard part is over, we are sad to inform you that the hard process hasn’t even started yet. Attracting new customers to sports betting websites is incredibly difficult since you have to compete with other companies that are investing millions in marketing and have years of experience in the industry.

However, it is not impossible especially if your goal is to open a small sportsbook that operates on a local scale.