The forerunners of bookmakers (BC) are betting shops that have existed since the times of Ancient Rome. The first places where bets were made were the hippodromes. Totalizator rates are summed up, a certain percentage is deducted from them in favor of the organizers, the rest of the amount is divided between the players who guessed the correct result of the competition. Since the 19th century, the scope of activity of sweepstakes has expanded to many other sports. However, from time to time in different countries, the gambling business was banned. Bookmaking emerged as an alternative to sweepstakes because it did not require a single cash drawer, making it harder to pursue.
The concept of franchising
In the legislation of the Russian Federation (CC), among the types of contracts, there is an option dedicated to the relationship of commercial concession. In Western civil law it is called franchise agreement.
According to contracts of this type, the franchisor gives the franchisee the right to use his trademark, trade secrets, commercial designation, and other exclusive rights for a certain fee. The user, in turn, gives an obligation to adhere to the recommendations of the franchisor in the scope of the contract. The parties to the agreement can be any business entities.
Betting business today
A bookmaker is a professional debater on the results of various sports, cultural, political, financial and other events. He must be able to predict these results, take bets, pay out predetermined winnings to winners.
Every day, the bookmaker's office collects a list of quotes offers for competitions of various kinds. It's called "line". Each event is assigned certain coefficient. The bettor knows in advance what his winnings will be if he guesses correctly. It is paid immediately after the end of the competition.
Most often, bets are made on the results of football, basketball, hockey matches, winners in races, and boxing. Among non-sporting events, it is popular to bet on the results of the Oscar, Grammy, and Eurovision awards.
Reasonable customers of bookmakers play on "forks". For example, it has been noticed that the odds for bets on the team of one's own country are always lower, and on the team of the opposing country - higher. Betting in the bookmakers of both countries-opponents in each match, such players always have at least a small, but winning.
There are other secrets experienced players, which the trained eye of an office employee immediately reveals: they try to be inconspicuous, they usually play for exotic sports for us, not for winning, but for secondary indicators. Once they win, they leave immediately.
Another category of clients that pose some danger to the bookmaker are athletes. They are professionally versed in their types of competitions, so they are more likely to guess the result.
But 90% of players are not so smart and usually lose. Because it’s not so much the office that plays against them, but mathematics.
A professional bookmaker honestly pays well-deserved winnings to customers. But the system is built in such a way that in the end, according to the theory of probability, the office turns out to be profitable.
Among them, the most common are:
- students playing in noisy companies. For them, it is not the winning that matters, but the process itself;
- pensioners - bet on "our" small amounts. In case of loss, they are satisfied at least with their patriotism;
- Caucasians - bet only on LIVE competitions, which are shown on TV. They lose constantly, while they believe that they were deceived by the bookmaker;
- guest workers. Always choose high odds and lose;
- gambling addicts who have been deprived of the right by the evil government to spend their money on slot machines. Now, in revenge, they come to bookmakers and also leave everything here to the penny;
- random people - they heard something about the opportunity to get fabulously rich in one day and came to try it. They bet on those participants in the competition, about whom they heard something on TV. Having lost once, they calm down and leave;
- other categories of office regulars - beggars, gopniks, etc. - are mainly busy redistributing winnings using their own methods. They do not bring profit to the institution, but they spoil its image, scare away honest customers who sincerely and voluntarily give their money to the office. Getting rid of them is the job of a bouncer.
Features of franchising in the field of fast food:
Franchise bookmaker "Chance"
"Chance" is a developed network of poker clubs, bookmakers from the company ROSBET. The lump sum is $5,000. The same amount will be the initial investment of the franchisee. Royalties are paid in the amount of 20% of the income received.
"First Betting Company (PBK)"
A young company from the Trio group. He is mainly engaged in the preparation of documents for the opening of acceptance points for rates by partners. The associated betting company "Leader" is also engaged in accepting bets online. More specific information, judging by the statement on the official website, the company provides only individuals who are individually interested in cooperation.
conclusions
Franchises of eminent bookmakers attract the attention of not only beginners, but also experienced market players. After the conclusion of the contract, the franchisee becomes part of a large family, where the proposed business recipes are repeatedly tested on colleagues from other regions. Unlike an independent enterprise, they do not have to remain alone and defenseless in an ocean of business full of risks and problems.
Starting a business under a well-known brand, the franchisee already has an established circle of customers loyal to the brand by the time the business is opened. Therefore, his path to success will naturally pass along the "green corridor".
The franchisor not only transfers his rights and documentation to the franchisee, but also teaches how to use them, taking into account the specifics of the business.
Franchisees have the best conditions for the supply of the necessary components of the business on favorable terms. In bookmaking, this advantage lies mainly in obtaining unique specialized computer programs, V online version– thoughtful website templates developed by specialists.
At the same time, franchisees must constantly follow the restrictions and rules that the contract with the franchisor imposes on them. Sometimes this leads to obstacles for further development business. Withdrawal from the contract or opening of a competing company on certain time or in a particular territory may be prohibited by the franchise agreement.
The listed restrictions must be taken into account when starting to work on franchising a bookmaker's office. At the same time, it is obvious that there are much more pluses than minuses.
Betting shop franchise: concept of franchising + essence of business + legal grounds for doing it + advantages and disadvantages + 6 types of franchises + 7 reasons to work according to the franchising scheme + instructions for cooperation with the bookmaker.
Since the ban on casinos was introduced in Russia, halls with " one-armed bandits» and specialized gaming clubs, gamblers began to look for an alternative among legal options, and found it in bookmakers and sweepstakes.
Due to the growing popularity of this business, many entrepreneurs have changed their occupation to such a profitable direction, which has generated great competition. So for those who want to join them the best way there will be a bookmaker's franchise.
There are many nuances in this direction, which we will consider in this article. But let's talk about everything in order.
Franchising concept
Franchising is understood as the lease of a brand, a type of market relations in which one entity, called the franchisor, transfers the right to another entity, called the franchisee, to organize their own business using its business system.
Franchising can also be called a form of licensing. The franchisor has his own benefit from such cooperation, the franchisee pays him money (royalties) for obtaining a business model. The business agreement between both parties is regulated by a onerous contract, the object of which, in fact, is the franchise.
Those. subject of the contract.
Franchise can be:
- commercial designation,
- technology,
- methodology for conducting a particular business activity, etc.
Royalty is considered a mandatory clause of the contract. A franchise fee may be a one-time fee or a fixed rate fee.
An important section of the document is also the requirements for using a franchise. In Russian law, franchising is regulated in accordance with Art. 1027 of the Civil Code with a commercial concession agreement.
Franchisors are such well-known companies as McDonald's, Subway, 1C, Lukoil, Zara, etc.
1. The essence of the betting business.
The principle of operation of bookmakers is as follows:
- People put money on certain results of tournaments, events.
- The office makes its predictions, assigning a previously calculated coefficient to each event, so that in case of victory, a person knows the amount of remuneration due to him.
- Every day, the bookmaker organization accepts bets from people.
- In case the expectations of the players are realized, she pays them the money, but if they lose, the amount of money they placed will be appropriated by the bookmaker.
To start a betting business, you need to be intellectually savvy, or attract specialists who are responsible for two main tasks:
- The first is to calculate the probability of an event occurring, such as what the outcome of a football match will be or how the game will end.
Correct calculations can only be made through a huge database, special algorithms that each bookmaker keeps secret.
- The second task will be to calculate the theoretical yield. It is calculated taking into account the conditionality and riskiness of the transaction, forecasts of events. This determines the margin, which means the profit of bookmakers.
Bookmakers must constantly monitor everything that happens in the world of sports, culture, etc. Only careful analysis allows them to determine the coefficient that will bring profit, regardless of the outcome of the event itself.
They use probability theory, statistics and expert commentary for analysis. All bookmakers have their own systems by which they calculate odds.
Bookmaker business is possible under the following conditions:
2. Legal grounds for the betting business.
Bookmakers (bookmakers, betting shops)- These are organizations with a complex structure that receive income by processing and calculating bets on sports, political and other events. Their activity is classified as a gambling business.
And, as you know, since 2009, the Russian Government has vetoed the gaming business (the exception is just the same bookmakers and sweepstakes). The gambling entertainment industry is allowed in zones specially created for this, of which there are 5 in the country.
This rule does not apply to the activities of bookmakers, which is important for their founders. A bookmaker is defined as a legal entity that organizes a club in which bets are made and bets are made.
Russian legislation considers the betting business as betting. In other words, bookmakers create conditions for transactions that are a priori risky, because. their outcome cannot be determined, but can be predicted and depends on the outcome of the event.
Some restrictions are imposed on the activities of bookmakers:
If you are not familiar with all the nuances of the betting business and do not have a large start-up capital, you will need an experienced partner who will help you, working for a share of the profits.
To overcome all these difficulties, including a high financial threshold, as well as to become part of the business, you need a bookmaker franchise. In this case, the franchisor may be located in other cities or even countries.
The franchisee who has the rights to the brand is called by the same name, uses the brand software for sports betting, an original business paradigm that allows it to dominate the market.
Advantages and disadvantages of a franchise for opening a bookmaker
Franchising involves getting a business model set up for a franchise. When entrepreneurs decide to buy a betting franchise, they get the rights to the trademark (with all the accompanying components: appearance etc.), the tools needed for the job.
They can promote and. However, in addition to the rights to use the brand, entrepreneurs acquire knowledge that helps them to successfully work in this direction.
Ongoing support is also included. When you decide to buy or franchise a bookmaker, you become a branch manager, which is considered a separate legal entity and has its own license.
1) What are the benefits of buying a franchise?
If a person is going to buy a franchise, he gets a number of advantages:
Use of a proven and reliable business model.
Employee training.
All useful knowledge how to create a betting business can be successfully obtained during master classes, lectures and trainings.
Before opening a betting franchise office, you need to master certain skills. The franchisor will make sure that everything works out for you, because the reputation of his brand is at stake.
Analytical and consulting services.
Rapid business development.
Getting the software.
There are several versions of the software covering various betting offices, as well as private betting clubs.
The developer carries out adjustments and changes for a specific market, is responsible for the creation of special designs and further maintenance. The franchisee has all rights to the software.
Brand recognition.
Territorial segregation of business.
The buyer will not have to compete with betting offices that have a common franchise.
Opportunity to familiarize yourself with the industry before acquiring a franchise.
You can choose the most suitable franchisor that will meet all your expectations.
In addition, a betting "script" will be provided. However, the biggest advantage is that you are not alone in this business, every assistance will be provided. It is also helpful to buy a betting franchise because that is how you can protect yourself from the financial risks that come with being highly competitive in the market.
An aspiring entrepreneur will certainly have many problems: finding a place, obtaining a license, developing software, finding initial capital, and so on. A young bookie is bound to make a huge number of mistakes. And an experienced bookmaker will help him avoid them.
2) What disadvantages should be prepared for?
However, along with the benefits, the franchise owner will come across a number of negatives. This is the possibility of severe restrictions, the need to follow the rules established by the first party.
You will have to face a different contingent. Socially unadapted persons often appear in the office, who, due to their ignorance, will blame the betting organization for their loss, thereby undermining its reputation.
Often there are difficulties in finding a suitable premises for a betting establishment. It must be placed in places with a large flow of people, mostly males, since, according to statistics, bets are most often made by men.
What are the types of franchises?
Franchises are classified according to such criteria as the scope of rights and obligations, the nature of the relationship that develops between the franchisor and the franchisee. A person who intends to run a bookmaker or any other type of franchise business should know character traits of every kind.
Conventionally, the following franchise options are distinguished:
- Franchise golden- also called a master franchise, because. on its basis, the recipient can decide on his own how to develop his business. And he will also be able to legally sell this franchise to other entrepreneurs in order to expand the business.
Franchise standard type (classic).
It is characterized by the presence of total control over the activities of the franchisee, the need for periodic reporting to the franchisor.
Working according to this scheme, you can pay money in the form of regular deductions (royalties) or give a lump sum. The classic franchise is rarely practiced in Russia, as entrepreneurs do not welcome strict limits.
The franchise is free.
It gives its recipient greater freedom of action, independence in accepting important decisions, is attractive due to adequate royalty rates, which is why it is very popular in the Russian Federation.
Turnkey franchise (silver).
Such a franchise offers favorable conditions for the person acquiring it, since he already has at his disposal completely ready business.
The franchise owner must create a branch himself, decide everything organizational issues, establish the process and only after that conclude an agreement with the franchisee. Subsequently, he takes % of the profit and does not burden the partner with his interference in the matter.
Import substitution franchise.
Its essence lies in the fact that an entrepreneur, adopting a foreign business model, manufactures goods in his homeland, provides services similar to brands.
Franchising for rent.
It has many similarities with silver franchising. Those. the franchisee, in fact, becomes a manager, limited in actions, since the franchisor retains property rights.
The choice of a particular franchise is based on the amount of capital investment, the ambitions of its recipient, his experience in entrepreneurial activity.
Is it worth opening a bookmaker franchise: an analysis of the current situation in the industry
Offices where they make bets have a good income, in any case, more than underground clubs slot machines and lotteries. On average, the margin of betting organizations in Russia is 8%.
Opening a bookmaker franchise is attractive for the following reasons:
- The costs of establishing a betting business are affordable compared to other areas of business. There is no need to rent or buy a large space. It is quite comfortable to sit in 16-20 square meters. m.
You will also need money to buy a computer, peripherals, cash register and its installation, maintenance, large screen to broadcast events.
It would be nice to buy furniture (several tables and chairs or sofas). Then people will be able to place bets and watch sports on the spot.
- The composition of the staff consists of at least 1 person who accepts bets and acts as a cashier.
- Franchise betting shops are usually characterized by high profitability and have a cash turnover of at least 40%, since the services are in great demand.
- The betting business is seeing a steady increase in the influx of customers. Perhaps the bulk of the clientele is not ready to do high stakes but she does it on a regular basis.
- The contract regulates the location of each office. Due to such a territorial division, you should not worry about competition between betting offices operating under a common franchise.
- It is possible to organize an office in the network. In this case, the cost of renting the premises and its equipment will disappear, it will only be necessary to direct resources to promote the web platform and maintain the program.
- There is no need to hire qualified analysts and the maintenance of the department, because analytical assistance will be provided by the franchise seller.
If we talk about the gaming market in general, then over the past few years, almost 30 offices have opened in Russia (with or without a franchise), as evidenced by the register of the Federal Tax Service.
These betting establishments have formed 2 self-regulatory organizations (SROs):
- "The first SRO of bookmakers", which accounts for 68.6% of the market.
- "Association of bookmakers", whose share is 31.4%.
The money volume of the betting and betting market exceeds 1.5 billion dollars a year:
Land-based betting shops in 2016 increased in number to 6,040 in January alone:
A comforting picture can be seen in the online betting market, where revenue growth is predicted:
How does a franchise build cooperation with a bookmaker?
To organize a franchise betting office, you need to do right choice regarding the franchisor.
To do this, you need to use a pragmatic approach, and rely on such factors:
- period of operation of the bookmaker's office,
- amount of royalties/lump sum,
- providing all kinds of support
- business growth rates.
After conducting a preliminary check, weighing all the pros and cons, you need to establish contacts with the selected bookmaker, individually discuss all the nuances, the requirements that she and you put forward. If a consensus is reached, the contract is signed.
Then new owner franchise pays a fee for it and proceeds to search for premises for a betting branch, register an individual entrepreneur / LLC, and obtain a license. If he buys a franchise from an Internet office, the launch will occur in the coming days, and the need for premises will disappear.
When the analysis of the market in the region of your residence has been carried out, the necessary area has been found, it is time to promote and promote the object. This shouldn't be a problem because the franchiser is helping with that.
You go through each stage of the launch together, and the central bookmaker provides recommendations and support, is responsible for the implementation of analytical functions.
Even before opening, the franchise owner must provide the tools required for the job and figure out what kind of finance the project needs. Only after that you can confidently talk about the beginning of a full and close cooperation with the betting organization.
Even at the stage of signing the contract, you will have to discuss with the bookmaker which franchise to choose, in what format your office will already work. For example, teaching staff, a branch offline or online. But don't let the names scare you - the essence of the activity will remain the same.
Get ready to invest.
The initial capital is spent on:
- registration, obtaining a license and other documentation - about 200 thousand rubles;
- rent - from 20 thousand rubles;
- equipment, furniture - 80-100 thousand rubles;
- preparation of the premises - 25-50 thousand rubles;
- launch of an advertising campaign - 20-30 thousand rubles.
In addition to these and other costs, money will be needed to form a reserve fund. At the initial stage, such a situation may arise when the player will have to pay a large amount of winnings. Many franchise owners note the creation of a reserve fund as one of the main conditions for the further work of the betting branch.
Since the profit of each bookmaker is formed from the results of miscalculating bets, it is recommended that the junior partner who has acquired the franchise independently investigate this issue, regardless of the advice of the franchisor.
Catalog of leading bookmakers with current franchise offers
Today, in the gambling industry, the major players offering to purchase a franchise are:
- Marathon;
- Zenith;
- League of rates;
- Chance.
These betting companies help franchisees in the initial stages. Each office for those who want to start a franchise business has its own tempting conditions and advantages. Let's spend short review to make your choice easier.
No. 1. Fonbet.
Fonbet is a betting organization with 15 years of experience, during which it has gained a good reputation and credibility. This bookmaker network includes over 500 offices, "scattered" in all corners of the country.
The company is highly acclaimed for not only favorable conditions franchise, but also a wide variety of bets on more than 800 types sports competitions and games. Fonbet does not require royalties or lump-sum payments. The cost of the franchise is 5 thousand dollars.
Buying a franchise from this bookmaker, the entrepreneur gets a ready-made business. He will pay monthly for the agency agreement + for the software. And Fonbet takes care of the tax deductions.
If a new franchise owner decides to open several PPPs, each will have to pay a certain amount at a fixed rate. In addition, you must meet the condition - hiring at least 3 employees.
In general, in order to cooperate with BC Fonbet, it will take about 30 thousand dollars. Of these, 17 thousand are working capital, the rest will be used to purchase a franchise, rent a room, etc.
No. 2. Marathon.
Marathon is rightly called the first betting organization, since it appeared in the 97th year of the last century. The office lost its leading position when licensing problems arose during the ban on the gaming business.
To date, Marathon has licensed its activities in Alderney, Curacao, Great Britain, Kazakhstan and other states. In recent years, the office has regained its credibility and offers to become its partners on the basis of a franchise.
The bookmaker organization is distinguished by the fact that it allows players to bet not only on sports, but also on financial, social and cultural events. The office employs professional analysts whose forecasts slip through the leading media broadcasting sports news.
Its representatives are 50 subsidiaries located in Russia, Ukraine and other CIS countries. Getting a franchise from Marathon will cost an entrepreneur $5,000.
The franchisee requires the franchisee to purchase an alarmed premises that complies with the rules fire safety. You also need to equip it with a safe.
The Marathon partner, along with a package of documents, receives the opportunity for advertising, consulting support, and software.
No. 3. Zenit.
The bookmaker's office was organized in Kazakhstan 20 years ago. It provides sports betting services. A developed betting system and prompt payment of winnings help it compete with similar establishments.
Zenith has a bookmaker network of 200 subsidiaries. The amount of royalties is acceptable (12% of the profit every month). The cost of franchising and organizing a business is 1.5 million rubles.
Payback can take 3 months, maximum - 12 months.
To obtain a franchise, you need to rent a room with an area of at least 30 square meters. m. (can be non-residential type), carry out repairs, purchase furniture and office equipment, surveillance cameras, a safe, a cash register, TVs, hire 3 employees.
No. 4. Betting League.
The bookmaker club "Liga Stavok" is rapidly developing in the gaming market, one of the first to receive a license in the Russian Federation. There are more than 500 franchised points in 120 Russian regions.
The company offers to bet on both sports and financial events. Because the bookmaker is ready to cooperate, you can work on a franchise in 2 ways: socially oriented and commercial.
According to the obligations specified in the franchise agreement, the partner receives professional training, equipment at low cost, software.
To conduct business under the auspices of the League of Stakes, an entrepreneur must have investments in the amount of at least 13 thousand dollars.
Betting business. profitable idea business.
Advantages and disadvantages of opening a betting shop
franchise offices.
No. 5. Chance.
Chance is a domestic betting company founded in 2003. Since its opening, it has expanded its network to 615 bookmaker branches located in Kazakhstan, the Russian Federation, Kyrgyzstan, Lithuania and others. 450 of them are their own, the remaining 165 are franchised.
The office operates in accordance with Russian legislation. It has a large staff of highly qualified analysts. Partnership with it is expected in various forms.
The betting organization guarantees legal and technical support, competitor analysis, round-the-clock operation. A personal manager works with each franchise buyer.
The downside is the royalty rate. Deductions reach 30%.
To get a franchise, you need to have 5 thousand euros, a good business reputation, an understanding of the regional betting market, and experience in providing services.
Novice entrepreneurs looking for a worthwhile business idea are advised to take a closer look at betting franchising. Few models will be able to bring their owner such a stable and decent profit as a bookmaker's franchise.
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Bookmakers and sweepstakes are participants in the gaming market that are allowed to operate throughout Russia. Sports bar networks are expanding rapidly, online betting is legalized by law. A franchise is a real opportunity to overcome the high financial threshold for entering the betting business.
The activity of creating clubs where participants can bet and place bets in favor of one or another outcome of a sports match (another event) in our country belongs to the gambling business. For professional organizers, it is important that it is not limited to special zones. However, starting a business requires a significant investment. The bookmaker's franchise is considered as affordable way enter the legal gaming business.
What is its essence? The club makes bets with players on its own behalf, and the totalizator organizes the place and conditions for making deals between two or more participants. By law it is different types activities, each requires a separate license. A bookmaker's office (BC) is a legal entity, an organizer gambling. To the last Russian legislation also refers to betting (betting) - a risky transaction, the outcome of which is not defined, and depends on an event that may or may not occur. Condition for participation in the game: deposit monetary rate on the terms of the bookmaker. To understand how the system works, consider:
- laws and regulations governing the organization of gaming bets;
- features of the Russian betting market and prospects for its development;
- review of 3 franchise offers to create a betting shop.
Legal grounds for activity
The organization of gambling in Russia is regulated by the following main documents:
- Chapter 3 of Law No. 244-FZ “On State Regulation of the Activities of ... Gambling”, December 29, 2006;
- chapters: 29 of the Tax Code; 1062, 1063 - Civil Code;
- “Regulations on licensing for the organization ... in bookmakers and sweepstakes”, Post. Rights, 12/26/2011.
The bookmaker's office as a business, of course, is distinguished by its intellectual component. For a business to be profitable, an entrepreneur must solve two problems. The first is to calculate the probability of the event on which bets are made: the outcome of the match, the score in the game. What is the historical database used for? expert opinions, own algorithms. A kind of "know-how" is available to every professional player, and is kept in the strictest confidence.
The second is to calculate the theoretical profitability, taking into account the fact that the transaction is conditional, risky, and depends on the predicted event. At the same time, methods of statistics and probability theory are also used, on the basis of which the terms of the contract are developed. They provide an advantage to the organizer by forming a margin.
Business conditions:
- Activities are permitted subject to a license issued by the Federal Tax Service of Russia, subject to all requirements of the law.
- The authorized capital is formed only at the expense of Money, the minimum amount is 100 million rubles.
- Net assets must be maintained in the amount of at least 1 billion rubles throughout the entire period of existence legal entity.
- A bank guarantee of 500 million rubles for the entire period of the license (that is, unlimited!).
- Mandatory membership in the self-regulatory organization of bookmakers and sweepstakes - separately for each type of activity.
- The contributions of each participant to the SRO compensation fund are not less than 30 million rubles, their number is not less than 10 organizations in the association.
Activity restriction:
- Institutions, clubs, teaching staff (points) can be located only in isolated parts of buildings, with the exception of residential buildings, children's, medical institutions, railway stations, airports.
- outside gambling zones it is forbidden to organize events using gaming tables and machines, data networks, including the Internet.
- Acceptance of cash from players is made through the cash desks of the institution using CCP, including at betting points (terminals).
- The transfer of rates to online (including electronic money) is allowed only through the transfer accounting centers established by the SRO (TSUPIS).
- Payment of winnings at interactive bets is made by transferring money to the player's account opened in the accounting center, on behalf of the bookmaker's office.
For organizing activities without a license, in violation of the requirements, administrative liability is provided (Article 14.11 of the Code of Administrative Offenses), for illegal gambling - criminal: up to 6 years in prison with a fine of up to 1 million rubles (Part 1, Art. 171.2 of the Criminal Code).
Analysis of the gaming betting and betting market
According to the registers of the Federal Tax Service, as of December 2015, 29 bookmakers were legally operating in Russia (Fig. 1). They are united in two SROs: The First SRO of Bookmakers (President Oleg Zhuravsky, BC Liga Stavok). The second is the "Association of bookmakers" (chairman Nikolai Oganezov, LLC "Fortuna"). "First" owns 68.6% of the market, and 31.4% - "Associations". According to the President of First Gaming Leonid Obozny, the total monetary volume of this market reaches $1.5 billion a year.
The total number of ground-based PPPs as of January 2016 was 6,040 units (Fig. 2). Fonbet is leading by a wide margin — they have 1024 points.
The picture of betting sites is shown in Figure 3. Behind last years their attendance has dropped sharply, official access to them is blocked, although alternative domain names. In addition, this is associated with the transition of the audience to mobile applications, which are actively developed and offered for all platforms. According to experts' forecasts, in 2016 betting is expected to see a decrease in offline income and a significant growth in the online market, in particular mobile gambling.
Big legislative "intrigue" in gambling business started in 2014. The state has made an attempt to legalize the underground Internet market, which is approaching the "terrestrial" one in terms of turnover. Bookmakers were allowed to work through special credit organizations - transfer centers. Self-regulatory organizations can establish them. "In return" Russian authorities are going to increase taxes from organizers accepting online bets by 10 times at once from January 2017. Judging by the fact that in February 2016 the “First SRO” was opened by TsUPIS, the upcoming increase did not worry the “gambling kings” much.
Franchise as a way to start a business
It is easy to calculate that the entry threshold in the betting business is about 1.5 billion rubles (net assets, authorized capital, joining an SRO). This is not counting investments in software, experts, a processing center, and so on. An unbearable amount for a small business. Is it possible and how to open a bookmaker's office under the Fonbet, Marathon, Liga Stavov franchise? For comparison, we present brief description market leaders.
BC "Marathon"
This company is one of the oldest, has been operating since 1997. Until 2006, she held about 50% of the betting market in Russia, but in 2009 she had problems obtaining a license, and her leadership positions were lost. Since 2012-2013, the brand has gradually increased its presence, and is currently the title sponsor of the Fulham football club. It is popular among players, the expert opinion of the company is respected. Ground PPP companies are closed, vigorous activity conducted on the Internet. The BC Marathon franchise is not represented on the official website, but according to some reports, the company has about 800 partners in Russia and the CIS countries.
BC "Fonbet" ("F.O.N.")
The official betting sponsor of the ULEB-2016 Euroleague Final. It has been operating on the market since 1994, has 2 licenses, betting shops are open in 54 regions of the Russian Federation and CIS countries. At the international exhibition Russian Gaming Week, it was recognized as the best bookmaker network in 2014. In the Internet market "FON" began to work before anyone else, in 1998. However, in the 2000s, he lost ground to BC Marathon, and became a leader after 2009. By the way, most of ground PPS was opened in places where Marathon points were previously based.
BC "Liga Stavki"
Relatively young, but very fast moving company. As already mentioned, in February of this year, they were the first to connect to the legal Internet market, which means that they have sufficient financial cushion and are not afraid of raising taxes. In addition, it owns almost a quarter of the new teaching staff opened in Russia in April 2016: 44 out of 172 establishments. Regarding the opening of ground facilities, there is no information on the official website, but the conditions of the online program are described in sufficient detail.
Features of partnership with the bookmaker
Let's make it clear right away: there are no official franchise offers of these companies. Most of the data presented on the Internet is unreliable. At the same time, both leading and smaller bookmakers are actively working with partners (Fig. 4). Due to the specifics of the gambling business, relations are based on an agency agreement, and not a concession (franchise). Each proposal is discussed individually, and interested persons you need to contact the bookmaker directly. All of them offer similar conditions, the differences are more related to the characteristics of the company itself and the nature of cooperation. It is practiced in two forms.
1 Affiliate programs over the Internet.
In the first case, large investments are not required, numbers up to 150,000 rubles are called. Must be provided technical means: computers, TVs, a room with a minimum area. Basic principles of work:
- for each new attracted player, the company pays commissions from 15 to 35% of income;
- software is provided, with a reporting unit and profit monitoring;
- professional consulting, advertising, information support is provided;
- the possibility of using financial, sports, mobile rates, including central events and high odds.
Partners are required to strictly comply with all the terms of the contract, their activities are carefully monitored.
2 Opening of land-based betting shops.
In this case, the following legal scheme is used. The licensee company "writes" in its license a new teaching staff, in which the actual activity is carried out by the partner. Legally, this means reissuing a license, and it costs the "franchisee" 150,000 - 200,000 rubles. The premises must meet all licensing requirements, belong to the bookmaker, and the partner leases it. Further, an agency agreement is concluded, and the entrepreneur acts on behalf and at the expense of the principal. The main advantages of cooperation:
- the term for creating a payback business is 2-3 months, while it takes 4-5 years to create it from scratch;
- the amount of investments is reduced several times: its order when opening a ground-based teaching staff is from 500,000 to 1,000,000 rubles;
- provides access to betting products, analytics, expert opinions, software.
- the average business profitability is estimated at 8-12%, profit is formed due to high turnover.
Thus, the main task of the bookmaker's franchisee is to attract new players, and its income consists of commission payments.
Summary
Business on sports betting was and remains highly profitable. The legalization of online games brings its profitability to a new level. The concept of buying a franchise of a bookmaker - in practice means participating in one of affiliate programs, and this affordable option for small business. Cooperation is possible in different forms, and high competition among the leading bookmakers inclines them to expand the geography of teaching staff and search for partners.
The betting business has not yet become widespread in the vast expanses of the former USSR, but this is a very promising option for your own business, because such a business can be organized at minimal cost, literally on 6 square meters. The equipment here is also required minimal. This is a computer with Internet access, a photocopier, a printer, a cash desk for accepting rates, software for working with rates.
You can purchase either licensed software, or order it from skilled programmers who will do the work, as they say, “for themselves”. But such custom software can cost upwards of $40,000. Bets can be accepted on 800 sports, so the betting business will surely appeal to gamblers who like to try new things.
There is also a variant of the betting franchise business. Of course, initially investments here will be required many times greater, however, brand awareness will provide you with a constant flow of customers, and the costs will quickly pay off.
The betting business is short-term financial instrument. And of the short-term financial instruments, this one is the most effective. Essentially this sport games on the exchange.
Opening a bookmaker franchise
This one, and therefore on its organization you need to get a special license, and no one will issue it without experience in the gambling business. Some entrepreneurs prefer to hire an experienced director, while others find that starting a franchise business will be much easier. So you don't need your own license. A franchise bookmaker is actually a branch of a well-known brand, to which the entrepreneur will have certain obligations. But on the other hand, when opening his office, a businessman will receive the most versatile support.
As in any stock exchange games, analytical work is very important in the betting business. Maintaining your own analytical department can be overhead, and therefore, again, it will be beneficial to open a franchise business and receive help from a large company.
It is interesting that a franchise can be called, for example, a betting shop, a branch of a bookmaker's office, and a bookmaker's cash desk, but the essence will be exactly the same. There are many franchises on the market today. Let's consider the main ones.
favbet
Beginners consider the franchise from Favbet the very best. Rooms must be at least 12 square meters. The advantages of the conditions of this franchise include the fact that the premises do not have to be your own, and this makes opening a bookmaker's office a simpler and more convenient process. Also, to open your own betting shop, you need to have everything necessary equipment. Initial equipment costs will be about $5,000.
When you fulfill all the brand conditions, you will receive a bidding software and 24/7 technical support. support. FavBet You will give away 20% of your profit every week. In this case, you will take all the risks of losing.
FavBet has been operating since 1999 and has branches in 8 European countries . This is one of the leading bookmakers, which offered its customers not only sports games, but also such socially important events as Eurovision and Elections. The company has 1,000 betting branches and about 100,000 regular and loyal customers.
betcity
Betcity can be called one of the most popular companies in its industry. It has been developing in the Russian market since 2003 and worked very effectively until the infamous epic with compulsory licensing that erupted in 2009.
Betsity is one of the companies distinguished by loyalty and stability. However, it also has its downsides. Firstly, according to professionals, with all its behavior, the company shows that absolutely not interested in professional, and, therefore, potentially dangerous players.
Secondly, when you go to the official website www.betcity.ru, You will be redirected to another resource www.betcityru.com, it is not clear to whom it is registered. And if one day this second portal does not open, it is not known what will become of the players' money.
The conditions for obtaining a Betcity franchise are similar to those of many other companies.
League of Stakes
The betting league, which has been operating since 2008, can be attributed to the most ambitious projects of this kind. The motto of the company is nothing more, nothing less than "the culture of betting". The company was one of the first to receive a license in the Russian Federation and now has 200 betting shops in 50 different cities of the country.
If you want to get a League of Stakes franchise, then in exchange for fulfilling simple requirements, the main of which is financial viability, you will be offered a whole range of services that allow you to quickly understand all the intricacies of the gambling business and quickly launch the branch.
Chance
The Shans company, like many Russian bookmakers, began its activity in 2003, and received a license in 2009. Now the office has more than 200 points in various countries.
The office has a user-friendly design website, which, however, does not contain information about the bookmaker and office addresses.
The conditions for obtaining a franchise of the Chance bookmaker's office imply an initial fee of 200 thousand rubles. At the same time, royalties will be in the range of 20-30%, and 400-600 thousand rubles will be required to launch your branch. You are guaranteed full legal, accounting, technical support.
You will be assigned a personal manager. Your branch will be assisted in terms of advertising, analytics, recruitment and training of employees.
Those wishing to work with the Chance bookmaker must have an ideal business reputation and financial resources for long term investment.
Fonbet
Fonbet is a noteworthy and stable bookmaker. As you know, most betting companies are liquidated after about six months of work, because the strict standards of this business are simply too tough for them.
Fonbet is famous for its amazing analysts with the highest qualifications. The software used in the company is the most up-to-date, high-quality and works smoothly. Fonbet has a stable financial flow, its work is characterized by clear planning and proven effective methods.
Franchise from Fonbet is beneficial in that there is no need to pay an initial fee. 2 times a month you will have to make 2 installments: one for the license, and the other for the licensed software. Upon entry, a lump-sum fee of $5,000 is required. Royalties are not paid. All taxes will be paid by the parent company. Fonbet offers a full range of services from consulting to the selection of premises and equipment.
Only 3 employees are needed to open one betting shop. The initial cost will pay off in about 3 months.
The Fonbet company appeared in the CIS back in 1994, and after 3 years it began to accept bets through the global network. This move allowed Fonbet to overtake Marathon, the leading company at the time. Fonbet is currently a full member of the National Association of Bookmakers.
Marathon
Marathon has been a leader in the Russian betting market for a very long time. It has been operating since 1997, and in 2009 there were difficulties in obtaining a license, which hit the company's professional image hard. Prior to this episode, the company was considered the flagship of the domestic bookmaker with a simple and convenient design site and with an excellent line. Marathon has branches all over Russia. The marathon is still characterized by fast payouts, low margins, an abundance of bets and the widest markets.
With financial viability and following simple rules, it will not be difficult to get a Marathon franchise.
So, a franchise in the gambling business is the best option for a beginner, because obtaining a license will require at least 100 million rubles net assets, and opening a point can cost only 150 thousand rubles if a company with the appropriate conditions is found. In addition, to open a point, you do not need to be an ace in the gambling business, as required by obtaining a license.
The profitability of the betting business will be small. It will be only 7-12%. However, this business has huge cash flows, and therefore the profit in any case will turn out to be solid.
