How profitable is a sports betting website
Lifelong dream or crazy idea? Open a betting shop
Many of us have spent a lot of time in betting shops and feel right at home there. Some go a step further and want to join Open a betting office. Is it guaranteed to make money with sports betting like this? But finding instructions for it is not that easy.
We asked around and spoke to many stakeholders. Is it fun running a betting shop? Is it a crazy idea or is running a betting shop a job like any other? And what earnings can be earned by arranging sports betting in a betting office?
Do you really need a franchise chain? Which brand should you use? Is Tipico the measure of all things, maybe Bet3000 or should one rather work with smaller providers like Wettenleip?
If you read on, you know: How to open a sports betting branch with fun and business success.
Running a betting shop: No fun
If you really want to run a betting studio, you have to be clear about one thing: Such entrepreneurial activity is no fun, but must be taken very seriously. The work and financial effort that one has to put into such a project should not be taken lightly.
Business success is only possible if you are willing to work hard and have a lot of staying power. This is especially true when opening a betting office. You don't just do it on the side. This requires business models and all that stuff: make investments, calculate profit margins, analyze risks.
The legal development: are betting shops allowed?
The risk analysis includes the questions whether sports bets are allowed in the betting shop and how the law will develop in the future. Because these are topics that are not that easy. In fact, they are complex and definitely not to be ignored.
It has happened in the past that over-motivated regulatory agencies wanted to close betting shops because of alleged illegality. In fact, the only nationwide license to organize sports betting is currently owned by the state provider Oddset. At the same time, a law regulating private betting providers has existed since 2012. The problem with this is: in all these years, the authorities have not got it on the chain to issue the appropriate licenses.
The reputable providers with the EU license of the MGA are currently operating both online and in cities. The Malta Gaming Authority has developed into the first address for international operators in recent years. The betting providers refer to the free movement of services within the EU. This opinion is also confirmed by the courts, since Germany does not have its own regulation for the Internet. At the moment, sports betting from private providers is also allowed.
The future is difficult to predict. German politicians are currently planning nationwide regulation from July 2021. We do not know whether the ladies and gentlemen will finally get this baked. But if there are valid approvals for the whole of Germany, then it can happen that an EU license is no longer sufficient.
This is definitely a scenario that you should keep in mind as an operator of a betting shop. In any case, you should always be prepared and, if necessary, have a plan B in your pocket. But we do think that it can still be worthwhile to open a betting office.
A business model is needed
If you want to start a business, you definitely have to have a plan first. This includes a concrete idea of how you can attract people to your store, how many costs you will have to pay, how much sales you will make and how much profit will be left at the end of the day.
These are all things that are not that easy to calculate. But you also have to take care of the necessary paperwork. The authorities are not making it easy for us to start our own business. If you want to open a betting office, it gets even more difficult.
According to the current state of affairs, the legislator regards betting shops like a game library. Although they are different institutions, they have one thing in common: Many municipalities want to drive them out of their cityscape. You have to be prepared for the fact that the response to the opening of a betting shop will not only be positive.
In any case, you need a business license. Then you should also take out certain types of insurance, such as legal protection insurance and public liability insurance.
Also, you have to contact the franchise you want to work with. The betting provider carries out a background check, you definitely need a clean certificate of good conduct. A negative Schufa entry is also a killer from the start. Once the contract with the franchise is in place, work can begin.
The legal form
As the operator of a betting office, you don't act as a bookmaker yourself, but as a betting broker. A shop for the brokerage of sports betting can have the corporate form of a GmbH, which stands for a company with limited liability. However, a GmbH costs 12,500 euros in minimum investment or requires 25,000 share capital. But you are not liable with your private assets if the business goes down the drain.
With a GbR you don't have to have these immense costs, you can easily have the company entered in the commercial register with two people. However, with this legal form, you have to throw your own money into the crisis in order to pay any outstanding bills.
Which legal form is the best depends on the planned business and your own living conditions. You can quickly stop by the management consultant to find the perfect solution. By the way, they can also help a little with the authorities.
The choice of location
Choosing the right location is a special point, because there are a few things to consider when it comes to this topic. Considerations that should definitely be included are:
- How much is shop rent in the area? A decisive cost factor is the shop rent, which you have to deduct every month. If it is too high, it becomes more difficult to work profitably.
- What kind of area are we in? Inner cities offer many potential customers, but rents are high. In upscale neighborhoods, people have no interest in hanging out in the betting shop, and in areas with high social housing, people have little money to bet. You have to find the right mix and think outside the box. The connection with the means of transport is also important.
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