There has been an explosion in the popularity of online sports betting sites in the last few years. Always a successful sector, changes in laws in a number of countries – especially in the US – have resulted in more sportsbooks appearing and more customers signing up to place their bets on their favorites.
This might suggest that thinking about a sports betting startup would be a waste of time. Surely in such a competitive market, there wouldn’t be room to be profitable and succeed. But there are actually countless opportunities in this industry for those who are willing to think outside the box.
It is true that much of the industry is taken up by very successful and large betting operators. The excellent Bovada betting site is just one example of a major player that is doing extremely well.
However, in this article, we will explore how new startups can also live alongside these betting giants – and what kinds of areas might be particularly open for new ideas.
How To Start a Betting Business?
Niche Targeting
The first thing to realize about the potential for being successful in the sports betting industry with a new startup is to not think you can go up against the big boys.
In many countries, the most successful operators have been around for decades, since sports betting in high street shops was legalized. Even in places like the US, the market is dominated by the kinds of names that have been associated with casinos in the past.
It is therefore crucial to think about how your startup can live and breathe alongside these behemoths. Think about the kinds of people who have not already shown interest in sports betting or the areas of betting that have not already been exploited. That is where the opportunity still lies.
Concentrate on Latest Tech
Sports betting firms are some of the most consistently successful across all industries. One of the reasons for that is that they are more than happy to try new things.
Early adopters are usually related with tech companies but sportsbooks and betting sites have traditionally been some of the first to try new technology to attract even more customers.
Augmented reality (AR) and virtual reality (VR) have been used by a number of sports-related businesses, including sportsbooks, to offer a more immersive experience to users. If you have some experience in these kinds of industries, there are opportunities to become a leading light in that area. The same applies to data analytics and machine learning.
Responsibility and Sustainability
Although sports betting operators have a reputation for being incredibly successful and profitable, it is fair to say that responsibility has not always been as closely aligned with their business models. This has changed in recent years but there is still a lot that can be done by smaller startups in this area.
Because profit has always been the main priority, there have sometimes been deficiencies when it comes to responsible practices. New startups can be the ones to promote those ideas and also bring the industry into the future of more sustainable success, as environmental issues become ever more important.
New (Old) Ways of Betting
A few years ago, the rise in popularity of esports spawned a number of esports-only sportsbooks. During the lockdowns, the lack of sports forced sportsbooks to look elsewhere for betting opportunities and esports betting became particularly popular.
These betting sites realized that the traditional operators didn’t know enough about the culture to offer real gamers a chance to bet on tournaments and events and moved in.
Offering new ways of betting could be a growth area of the market. There are some sportsbooks offering the chance to bet against friends and family or other people rather than the sportsbook itself. This is a somewhat old-fashioned way of betting but a new startup can turn it into something new for younger generations.
New Audiences
Those new generations of sports bettors are the ones that startups can really target. Established betting firms may have large tech divisions but a startup can really hone in on the individual needs of users and use their own specialist knowledge to offer a much more relatable product.
Even just targeting different audiences can be a game changer. In the past, it has generally been men that betting firms have looked to as their natural customers.
But that way of thinking halves the potential customer base immediately. Thinking about more inclusive sports betting experiences could be a startup’s USP.
Sportsbook Adjacent Projects
Alongside identifying niche markets and targets, there is a whole host of opportunities available to people willing to work with the big players in the game, as opposed to competing against them. These betting giants may have a lot of talent at their disposal but if you can prove that your startup is more competent, alliances can be formed.
If you are concentrating on the details, there is no need to figure out how you can offer a better service than one of the big betting firms.
Use your expertise and specialist knowledge to provide that service for them and benefit from the market share they already enjoy. Teamwork makes the dream work, after all!
Find Your Place
The most important lesson from this article should be that there are plenty of places within the sports betting industry for new startups. Just because it seems saturated and over-subscribed, doesn’t mean that there is not something you can offer.
Sports betting is a billion-dollar industry now and becoming even more part of the mainstream across the world. If you are able to find a place for your startup, you could become extremely successful as well.
