How to Start a Sportsbook Business? All You Need to Know About Running a Sportsbook to Become a Bookie

Are you looking to start your own sportsbook? If so, you’ve come to the right place. In this blog post, we will give you tips on how to get started. Although running a sportsbook is not a small feat, the right planning and execution make this venture a lot easier. So, let’s dive into the instructions on how to start a sports betting business and become a successful sportsbook operator.

What Is a Sportsbook?

A sportsbook is a service where people can bet on the outcome of sporting events. Bettors can place wagers on the outcome of games, how many points will be scored in a game, who will win a particular matchup and other events. Generally speaking, the sportsbook makes its money by taking a commission on multiple types of bets, like Point Spread, Money Line, Under/Over, and others.

Now that we know what a sportsbook is, let’s take a look at another closely related term.

What Is a Bookmaker?

A bookmaker (also known as a Bookie) is an individual who facilitates gambling on sporting events by setting the odds and accepting bets. So while the terms ‘sportsbook’ and ‘bookmaker’ are often used interchangeably, they mean completely different things. The term bookie refers to an individual while the sports betting platform where these bets are placed is known as the sportsbook.

What to Consider Before Creating Your Sportsbook?

There are a few key reasons why it can be worth creating a sportsbook app, even if you’re not a die-hard sports fan. For one thing, sports betting is a major industry, and there’s obviously a lot of money to be made there. Many sports fans are extremely passionate about their teams and love nothing more than placing a bet on their team to win. Having a sportsbook app would give them the ability to do this quickly and easily, and this is great news for you as the bookie.

It all sounds great, isn’t it? It’s a challenge, though, as sportsbook is a risky business with a lot of regulations. If you approach creating a sportsbook in the wrong way, you could end up losing a lot of money and developing a product that could be blocked by the government, or not competitive. You need a solid knowledge of the sports betting market as well as the legal or regulatory framework that guides the sports betting industry.

Sports Betting Market Overview

Thanks to recent regulatory changes and advancements in mobile betting, the sports betting market has been quite prosperous in recent years. According to recent statistics, the global sports betting market was valued at $102.4 billion in 2024 and is expected to grow at a cumulative annual growth rate of 10%. Based on these market trends, the industry will be worth up to $265.5 billion by 2034. The number of users in the online sports betting market is also expected to hit up to 182.5m by 2029.

Knowing the state of the online gambling market especially as it relates to your specific location is an important step to take before venturing into the bookmaking business. Knowing the market will also help differentiate your bookie business from others. If you offer good odds and spreads, people will keep returning to place bets, earning you a good slice of profits within the market.

Legal & Regulatory Aspects

There are many different regulations that you need to be aware of before starting a sportsbook business. While the gambling laws in most locations are generally favorable towards sports betting, there are still things such as age restrictions, tax laws, and limits to how much players can bet based on the anti-money laundering policies of your country’s government. 

Data protection laws such as the General Data Protection Regulation (GDPR) also apply to online betting platforms. Depending on the country, you may also be forced to implement so-called Responsible Gambling measures, for example, daily limits, self-exclusion, dedicated warnings, time counters, and other features that would prevent the bettors from being addicted to what you offer.

Why Running Your Sportsbook as a White Label Is Not the Best Solution?

If you’re thinking about building a sportsbook app, we strongly advise you to consider custom solutions. However, there are more methods of developing such a product. One option is to run your sportsbook as a white-label solution. Yet, although it promises convenience, there are a few reasons why running your sportsbook as a white label is not the best solution. 

White labeling can limit your ability to customize your sportsbook to fit your specific needs and preferences. You may not have control over the look and feel of the site, or over the sportsbook features and functionality that are available. This can make it difficult to create an engaging user experience that will keep customers coming back.

Also, dealing with a third-party provider can be frustrating and time-consuming. A lot of back-and-forth communication is often required in order to get things done, and this can slow down the process considerably.

Finally, white labeling usually results in higher costs and lower profit margins. This is because the third-party provider takes a cut of the revenue in exchange for providing their services, plus they apply a fixed monthly operational fee. 

Why Running Your Sportsbook as a Turnkey Is Not the Best Solution?

First, you should know that this option can be quite expensive. Secondly, you are essentially outsourcing your bookmaking business to another company which can be risky. Finally, you may not have as much control over your business as you would if you were running it yourself.

Sports betting is a very competitive industry and margins are already razor-thin. So, any additional costs associated with running a sportsbook can eat into profits quite significantly. This is why many experienced operators choose to run their own bookmaking operations rather than go the turnkey route.

Technology is the backbone of any sportsbook operation, so you’ll want to make sure that you have full control over it. When you use a turnkey solution, you’re essentially renting someone else’s software and hardware, which means that they could make changes that could adversely affect your business. For example, they could raise prices or change the terms of service. This could leave you in a bind if you’re not able to find another provider quickly.

Please note that once you pick a white-label or turnkey solution it is hard to decouple from the provider of choice. You’d be connected to the provider for years, waiting for new features for months, or you’ll even see a feature you were not expecting on your sportsbook. 

How to Start a Sportsbook – Step-by-step Guide

The most advantageous solution when it comes to developing your sportsbook is to create the UI from scratch. 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. 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. Of course, building a sportsbook from scratch requires significant time and effort. Here’s a summary of the basic steps to follow.

#1 Research the Market

The first step to starting any business is always going to be researching the industry and market trends. This applies to running a successful sportsbook. You need to understand the ins and outs of the online betting business before you can even start a sportsbook.

#2 Verify Your Budget

This is an important step because it will determine how big or small you can make your sportsbook. If you have a limited budget, then you need to be realistic about what you can and can’t do. In such a case, you should consider doing just a few sports at the very beginning, or limit some potentially costly features such as live betting, a custom bet slip, etc.

#3 Define Requirements

When you have a clear understanding of the industry and you know your budget, you can start to define the requirements for your sportsbook. This includes things like what software you need, what payment methods you want to offer, and what betting markets you want to cover.

It’s completely normal to feel overwhelmed at this stage. There are a lot of factors to consider and it can be tough to know where to start. That’s why it is crucial to collaborate with experienced sports betting software developers like CrustLab’s team that can help you set up your sportsbook and get it running smoothly.

#4 Specify the Development Technology

This includes things like the programming language you want to use, the server environment, and the database. You need to make sure that you choose a technology that is scalable so that your sportsbook can grow as your user base grows. The technology should be reliable and secure so that you can protect your users’ data.

#5 Analyze Your Competitors

Let’s face it – there are a lot of sportsbooks out there. And, if you want to be successful, you need to know what your competitors are doing. This can make all the difference in defining your unique selling proposition. This doesn’t mean that you should copy them, but you should be aware of the features they offer and how they operate. This way, you can find ways to improve upon their offerings.

#6 Define Business Logic and Differentiators

After you’ve chosen your development technology, you need to start defining the business logic for your sportsbook. You also need to start thinking about how you’re going to differentiate your sportsbook from the competition. What can you offer that they don’t have? How can you make your sportsbook stand out?

In this step, you should verify what kind of betting lines you want to offer, how odds are calculated, and how payouts are processed – this is the core logic of sports betting businesses. Next, you must decide which betting markets you will cover and which ones you don’t – you may want to specialize in a particular sport or offer a wider range of markets.

Finally, identify what features you want to offer and how they will benefit your users. This can help you attract more users and keep them coming back. You could run a reward program that will incentivize users and keep them on your platform or offer daily bonuses. The possibilities are limitless, and we can advise you on which ones work best.

#7 Verify Law Regulations

This step is important to make sure that your sportsbook is compliant with all relevant legal requirements and regulations. Building a sportsbook app without knowing the law is a slippery slope, as it could lead to legal issues down the road.

If you think of entering, for instance, the Brazilian market, you should deeply investigate how to start a sportsbook in Brazil, reading all relevant information on the topic. It’s important to consult your business plan with a lawyer to make sure that your sportsbook is compliant with all relevant laws and regulations. Getting a valid license is an important requirement to operate a bookmaker in most places. The specific legal requirements will vary depending on the jurisdiction in which you’re operating.

#8 Consider Users’ Needs

No matter how good your sportsbook is, it won’t be successful if you don’t have any users. This is why it’s important to focus on acquiring and retaining users from the start – but also on providing them the best user experience. You can do that by:

• Offering a wide range of markets and competitive odds to increase their chance of getting wagers and winning more money
• Providing a user-friendly betting platform that’s easy to navigate
• Offering attractive bonuses and promotions
• Delivering excellent customer service
• Facilitating registration and log-in processes
• Offering rewards for using your app to make up for losing wagerers
• Improving the platform based on their feedback

All of these factors will help you formulate a user-focused marketing strategy that will attract and retain players.

How to Run a Sportsbook – Common Mistakes

Now that we’ve talked about the steps for starting a sportsbook, let’s take a look at some of the most common mistakes bookies make with their sportsbook products and how to avoid them.

#1 No Customization Included

Not customizing your product can be a big mistake, especially if you’re targeting a specific market or niche. 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 online gambling site out there. And it makes a big turn-off for potential customers looking for a more personal and unique experience. This goes beyond creating only custom odds or markets. You should include unique features that allow you to offer your users an online gambling experience that is tailored to their needs and preferences.

#2 No Filtering or Favorites Options

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 keep coming back for more.

#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. In addition to the betting options, your betting platform should also be integrated with various payment methods to provide convenience to players.

For example, if your positioning statement advertises your brand as the 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. 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 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. It also helps if your site has multi-language support, currency conversion, multiple payment options, and other features that make it more convenient to use.

#5 No Advanced Rewards and Bonuses System

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 marketing.

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 reward 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)

#6 Poor Performance

As an experienced bookmaker, you should offer a product that is of high quality and optimal performance. If your sportsbook is constantly crashing or if the odds are always off, your users will quickly get frustrated and are unlikely to place more bets. 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

If your potential customers have to go through a long and complicated process just to create an account, it paints a negative picture of what their experience will be when they eventually register. You should ensure that the registration and verification process is quick and easy so that your users can start using your product as soon as possible.

Be aware that verification is an essential part of running a sportsbook as it is a legal requirement in all jurisdictions. Users should be able to attach documents without hassle, and these documents should be stored with the highest level of security possible. Integration with a modern and trusted KYC provider should be high on your list of priorities when building a sportsbook app.   

#7 Laggy Statistics

If your users are constantly seeing old data or no data at all, it will surely negatively affect their betting experience. Make sure that your integration with stats and data providers is always as performant as possible so that your users can find reliable stats and data on your platform. This is especially important if you’re running a live betting sportsbook where people can potentially lose due to a delay in data.

#8 Lack of Trackers

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 score

A lack of trackers from reliable data providers on your online sports betting site can cost you users in the long run. Players who have more information about the games can carry out critical analysis before they place bets, which is particularly beneficial for the bookmaker.

How to Find a Sportsbook App Provider

If you’ve made it this far, you’re obviously serious about starting an online sportsbook. The next step is to find a sportsbook app provider that can help you turn your dream into reality. What do you need to know before you choose your sportsbook provider?

What Features Do You Want the App to Have?

Make a list of all the features you want your sportsbook app to have. This will help you narrow down your options and find a provider that can offer what you’re looking for.

How Much Do You Want to Spend on Development Costs?

The cost of developing a sportsbook app will vary depending on the features you want and the service provider you choose. With that said, you should expect to spend between $50,000 and even $500,000 on development costs. Note that picking the best app provider isn’t about finding the cheapest option. Prioritize quality service over saving costs.

Does the Developer Have Experience in Creating Sportsbook Apps Specifically?

When you’re looking for a sportsbook app provider, it’s important to choose one that has experience in creating sportsbook apps. This might seem like an obvious point, but it’s one that’s often overlooked. Creating a sportsbook app is a complex process, so involving someone with experience is crucial. They’ll know how to navigate the regulatory landscape, design a user-friendly interface, and integrate the necessary features.

Start Your Sportsbook with CrustLab

If you’re serious about running a sportsbook, then you need to partner with CrustLab. We have years of experience in developing sportsbook apps and can help you navigate the iGaming development landscape. Check some of our case studies:

• BetMakers – next-generation online betting platform – Creation of a next-generation multi-tenant horse racing betting system hosted by one of the biggest players in the betting industry. The number of weekly sessions per user increased by 241% since the system was first deployed.
• BETFAN – sportsbook web & mobile UI – Implementation of a new web and mobile custom frontend for one of the most prominent Polish legal bookmakers.
• Pick24 – social betting mobile apps development – Development of social betting iOS and Android mobile applications for simulated gambling. Integrated with the LSports API.
• DreamPicks – online sports betting platform MVP design – Complete design project of the MVP version for an online sports betting platform intended for the US market delivered in less than three months.

With a solid understanding of the latest technologies, risks, and challenges, we can help you achieve your sportsbook development goals, every step of the way. Contact us today to find out how to make a betting website.