The sports betting industry is one of the many industries in Nigeria that bring in millions every day. Nigeria has a large population of young sports fans. If you want to start a sports betting business, you should realize that there are several options.
It is undeniable that sports betting generates a large profit. This is shown by the abundance of betting establishments. In reality, sports betting is starting to take over Nigeria’s streets and crossroads. The best part is that no matter how many stores there are, there is always a crowd trying their luck.
Another fact about sports betting is that the betting companies usually win. This business has grown exponentially in the last five years, and now is the time to get in on the action. Sports betting is a game of chance. Some wins and some losses. Many keep trying their luck because they know they can win thousands or million of naira for as little as N100. So finding consumers for your new business will not be tough.
How Does Sports Betting Work?
A punter is a person who places a bet. A punter bets on the outcome of a game. If the forecast is correct, the sports betting company pays the punter the stipulated amount, if not, the punter loses his money. It’s a win or loss game. Sports betting is a lottery.
So, let’s look at how to start a sports betting business in Nigeria.
Register with CAC
To start a business in Nigeria, you must register it with the Corporate Affairs Commission (CAC). You can usually register as a sole proprietor or a limited liability company. Starting a small business in Nigeria is best done as a business name, then later as a limited liability company. But you can’t register a business name for sports betting.
It must be registered as a limited liability company with a minimum share capital of N5 Million. Hence, starting a sports betting business requires a lot of funds. So, go to CAC’s portal and register your firm. However, due to the nature of the sports betting industry, you should hire a pro.
Obtain The Licenses
Gaming is a highly regulated industry in Nigeria, therefore get the licenses before you start. Nigeria has various regulators to get approval from. The NIPC, NOTAP, and the Special Control Unit against Money Laundering are the most important (SCUML). Moreover, some operators must get a Capital Importation Certificate, a Tax Identification Number, and register for Value Added Tax (VAT).
You must also apply for a license with the Nigerian National Lottery Commission. But if you work for a registered and licensed company, you won’t need all the licenses.
Select A Betting Company
This is for people who cannot afford to start their own sports betting company. Franchise registration with an existing betting company reduces startup costs. A franchise allows you to benefit from the company’s established reputation. You may utilize their name, logo, and software. All you need to do is pay a franchise fee.
Find the best betting business for you based on their commission rates. For example, Bet9ja gives weekly 10% commission on sales.
Here are some popular betting businesses to join:
Online and mobile sports betting are also available. Starting in 2006, its user-friendly layout and great customer assistance have made it a favorite among many. The list is not exhaustive. You can do your homework and choose the one you feel most comfortable with.
Open A Shop
A physical address is one of the prerequisites for obtaining a sports betting license in Nigeria. So, hire a good office where you can conduct business. People will also be hesitant to trust you with their money if you lack a physical presence. Agents, like bookies and promoters can rent office space. It is also advised to rent a huge workplace that can accommodate several people.
Purchase The Necessary Equipment
After acquiring a shop, buy the essential equipment. Computers, UPS, printers, TVs, furniture, and monitors are the fundamental equipment. All of these are vital to your sporting business’s success. You don’t need to buy new equipment to start. However, newer models last longer and come with a warranty. You should also include internet costs in your budget.
Get Betting Software
This is the most crucial decision in your sports betting business. All betting software transactions will be regulated by the betting software. So choose a reputable software provider carefully. Check reviews before buying.
Create A Website
Having a website is vital for any sports betting business because it is where you will announce daily victories. Also, your website is the best place to learn about your sports betting company’s operations. Also, your website acts as a conduit between you and your clients. Everything you wish to tell your customers and the public goes on your website.
Select A Payment Provider
Sports betting is an internet business that requires an online payment gateway to facilitate payments. It’s easier when customers can pay with their cards quickly and simply. Secure your payment gateway since an unsecured payment gateway invites attacks and discourages potential consumers.
Rent Other Shops
If you are beginning from scratch, having only one location is not profitable. Open branches in different places to reach a larger audience. You can also try franchising your store to those who want to manage it but lack the initial funding. Even though sports betting is an online business, many prefer to place their wagers in person.
You would agree that the competition is fierce in the sports betting market. So, if you’re a rookie, you’ll need to promote aggressively. Your marketing plan must be solid. A successful campaign will cost a lot of money. A TV/Radio commercial is one approach to promote your sports betting business. Use social media, handbills, posters, newspapers, and online ads.