The betting business in Russia is very young, only 20 years old, but it is already a very promising investment option.
We will talk in detail about how to open a small betting club, and what factors need to be considered.
Traditionally, many people identify the betting business with slot machines and casinos, which is not entirely true. It is an axiom that the casino cannot be beaten, but the betting business can theoretically be unprofitable. The bookmaker's profit is earning on excitement (and in this the bookmaker business is similar to a casino) and the ability to predict the results of events more objectively than the players. But the bookmaker can also incur losses, which are caused by the deliberate and balanced work of the players using sports knowledge, analytics and statistics.
As a result of Gross Gaming Revenue - marginal (gaming) profit, as a rule, reaches 10-15 percent, which can make it possible to achieve a business profitability of 60-80 percent, and this, under current conditions, is another argument in favor of this type of activity.
Entering the betting market
On the way to entering the betting market, there are several important obstacles and requirements that need to be met. The most important barrier is the legal one. Betting is a licensed activity, and a betting license is very expensive, and for most, the only way to enter the market is not to get their own, but to add a betting shop (BPP) to an existing license. By and large, this option is most actively used in the Russian market. Of course, there are many illegal PPPs on the market that operate illegally, but such activities are associated with increased risks and we will not consider them.
After the legal issue is resolved, the organization of the bookmaker's office remains directly. First you need to take care of the room. The area can be either 5-10 squares (sublease is possible), or hundreds of square meters. There is a trend towards the consolidation of business, that is, small points appear less and less. Regardless of the size of the premises, the location of the teaching staff plays a very important role. As we have already said, the gaming profit is 10-15 percent, therefore, the amount of profit depends on the turnover. To ensure a good turnover and high profitability, it is necessary to choose the right place for betting shops, taking into account the main target audience (TA) of the betting business.
Portrait of an average player
Floor: male (99.9 percent)
Age: 35-45 years old
Education: secondary, higher
Social status: middle managers, workers and middle-income workers
They bet on: football (60% - 70%)
Average sports bet: 500 - 1000 rubles
In this regard, the placement and ensuring recognition of teaching staff in a place of congestion or patency of "suitable" people will provide higher turnover, greater profits and an early return on business. Among the most suitable places for the placement of teaching staff are the central streets of cities, residential areas, places close to the main transport interchanges, large shopping and entertainment centers, places located near sports arenas (stadiums, popular sports sets, etc.), sports bars and so on. It is impossible to offer any unambiguous recommendations in terms of choosing a location, but the main criterion is simple: those places where people visit regularly are beneficial.
In accordance with legal requirements, any PPP must have round-the-clock security, which will also become an important cost item. For example, in Moscow round the clock security costs an average of 90 thousand rubles a month.
Betting shop equipment
Mandatory technical equipment includes:
- Computer (processor at least 2 cores, RAM - at least 4 GB, video card with at least 1 GB memory with HDMI / DVI outputs (based on 1 video card for 2 monitors), hard drive from 250 GB);
- Monitors (at least 4, at the rate of one for the cashier and the rest for the players, while vertical monitors are needed for convenient demonstration of the line, and horizontal monitors for showing games);
- Receipt thermal printer (required for printing coupons);
- Laser printer or MFP (for printing lines).
An important technical requirement is stable Internet access with a minimum speed of 5 Mbps.
Organization of the work of teaching staff
For the full-fledged operation of the betting shop, modern software is required that is able to automate many routine processes, allow you to accept bets on the Internet, regularly update and expand the list of events that you can bet on, organize full-fledged accounting and secure your work.
The cost of software can be hundreds of thousands and even millions of dollars, so for most market participants, a more acceptable work option is to cooperate with existing software developers, rent their lines and other software solutions.
It is extremely important to take care of the insurance (reserve) fund, which will allow you to pay the players at the calculated rates. It is desirable that the size of the insurance fund be 50 times the maximum allowance for one event. Otherwise, there is a possibility that the new teaching staff will be beaten very quickly (for example, by competitors), and the start-up will fail.
Before opening a bookmaker's office, it is necessary to recruit and train staff to work with software and equipment, thereby ensuring the qualifications of employees and the ability to solve daily operational tasks. In addition, it is necessary to bring the staff up to date, convey the mission and goals of your business, so that they have an understanding of what your company and the betting business as a whole is.
PPP concept
To create a bookmaker's office, you need to think over its concept. Despite the fact that we consider only small PPPs, there may be several conceptual solutions for business:
1) "Minimum"- a small PPS with an area of about 10 square meters. It is possible to use only one cash desk for receiving bets, 2-3 monitors for players, tables and chairs, if desired. To attract people, you will need a sign at the entrance. The premises can be subleased, the initial investment is minimal, but high turnover may not come immediately. This is a budget option, very relevant for the regions of Russia.
2) "Comfort"– PPP from 50 square meters. There are several cash desks for accepting bets, the number of monitors reaches 8 or more. It is better to divide the room into two zones - sports (sports betting) and games (Betting Games). The sports area should provide a place to relax, where players can think and calculate their betting options in comfortable chairs, as well as watch live sports broadcasts while making Live bets.
The reason for the division of zones is simple: sports betting and Betting Games are significantly different in nature and their target audience is different. A mandatory requirement is a noticeable, catchy sign. Optionally - promotions to attract customers. The amount of investments is greater, the rent for the premises is higher, but the players in such a teaching staff will be drawn faster.
3) "Combo"- PPP in a small sports bar. This is not only a betting place, but also a catering establishment. It is necessary to simultaneously ensure the functioning of the teaching staff, and develop the "restaurant business". The teaching staff itself can be organized both on a budgetary basis (for example, subleasing several square meters in a sports bar), and on a comfortable option. In matters of advertising and promotion, you need to profitably present your product, which combines 2 interesting relevant services at once. This is an ideal option for owners of cafes and bars.
How much does it cost to open a bookmaker's office?
To open any version of the teaching staff, it is necessary to spend from 300 thousand rubles on entering the license and purchasing equipment, the remaining costs associated with renting premises, remuneration of personnel, and other operating expenses will differ in each of the options. The payback period will be from 6 to 12 months, it all depends on the correctness of the decisions made on all the above issues.
It remains only to draw your attention to the fact that Rub90 is ready to help you with all stages of entering or expanding an existing betting business, from resolving the issue of entering betting shops into a license, consulting on choosing equipment, offering your own software on the most favorable terms, and ending with full support your business.
With respect to the betting business, Rub90
Since ancient times, enterprising people have found an opportunity to make a profit due to their interest in risk and excitement. Today, the concept of entire enterprises in the gambling industry, which bring a stable income, is built on this.
Depending on the chosen direction, opening such establishments requires a different amount of initial costs. There are low-cost options that may be available to aspiring entrepreneurs. A striking example is a bookmaker's office as a business that may require billions of dollars of investments, but in some cases it can cost several hundred thousand rubles.
Features of the betting business
The activity of bookmakers and sweepstakes is currently the only option for the gambling business that can be carried out outside of special gambling zones. Therefore, the flow of customers in such establishments is quite stable and provides a serious level of profit. All this is achievable if you know how to organize a bookmaker's office or open a sweepstakes, taking into account the regulatory and marketing features of such activities.
There are currently three possible implementations of this idea:
- creation of own office;
- implementation of an Internet project.
The choice of a specific option always remains with the entrepreneur, depending on his capabilities and desires. Each of them has its pros and cons, which must be taken into account when developing a project.
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How to open a bookmaker
In order to open a bookmaker's office, it is necessary to fulfill a number of conditions established at the legislative level. To get started, you need to obtain a special license that allows you to conduct betting activities.
How to get a betting license? This permit document is issued by the Federal Tax Service of Russia on the basis of a written application with a certain package of papers attached.
The total amount of the authorized capital cannot be less than 100 million rubles; in addition, it is necessary to provide a bank guarantee in the amount of at least 500 million rubles. The license applicant must document the origin of the funds contributed to the authorized capital.
Important! The authorized capital of the organization should not be formed with the help of borrowed funds.
In addition, the law establishes that the real value of the bookmaker's own property minus debts, in other words, net assets, must be at least 1 billion rubles.
It is necessary to take into account what is needed to open a bookmaker's office to ensure that its head has experience in the gambling business. It is confirmed by an entry in the work book or an employment contract.
Separate requirements apply to the placement of such an institution:
- the premises for carrying out the activities of a bookmaker's office or a sweepstakes should be located only in a capital building;
- the premises must be divided into two zones: service and for servicing participants (clients);
- the premises must have a separate room for staff rest, a separate room for receiving, storing and issuing money, a separate room for security (this condition is not necessary for betting shops).
Thus, creating your own bookmaker's office or sweepstakes becomes a very difficult task, but the possible profits are several times higher than the initial costs. For example, the minimum rate in most offices is 500 rubles, and about 60 bets are made per day, with an average profitability of this business, the monthly profit is at least 90 thousand rubles. Given that the funds invested in capital are on the balance sheet of the company, this amount of profit is quite good.
Tip: betting activity brings more income when there is a network of points for accepting bets. Therefore, even during the development of the project, it is recommended to plan the opening of at least five points.
Franchise bookmaker
Any entrepreneur can open a bookmaker's office under an affiliate program without serious investments. Today, there are more than twenty betting companies of the federal level operating in the country, which offer a wide variety of options for cooperation. These are large market participants who know how to open a bookmaker's office, the franchise of which will allow both them and their franchisees to make a profit.
Any partnership option requires a minimum investment. It is enough to rent a small room for receiving bets and provide it with a terminal showing the betting lines. However, here it is necessary to take into account the specific requirements of the franchisor, since each of them puts forward certain conditions for its partners. Check out the guidelines for .
Franchising does not require a license. This means that there is no need to attract large financial investments in the authorized capital, to look for an experienced manager. The affiliate program provides for the transfer to the partner of both special software and the formation of betting lines - in fact, this is an already set up business that requires only control.
On average, the franchise bookmaker's profit is about fifty thousand rubles a month and largely depends on how “promoted” the name is, as well as on the location of the betting point.
Virtual bookmaker
A significant share of the betting market is occupied by online sweepstakes.
How to open a bookmaker's office on the Internet? Currently, there are two options in this direction, which can be conditionally called “white” and “gray”. The first one involves the creation of a site for accepting sports bets, taking into account the requirements of the legislation discussed above. In the second case, the tote works without official business registration in the Russian Federation, and its website is registered on the domain of the state in which the gambling business is not controlled.
From the point of view of the law, only the "white" version can be used. Another betting system is short-lived and can lead to adverse consequences, of which blocking a resource is the most harmless.
Prospects for betting activities
According to experts, the demand for sweepstakes in Russia is on the rise. This is due to the development of a culture of sports betting, and the slowdown in the development of gambling zones, and the massive closure of illegal gambling establishments.
It is possible that in the near future the state will soften the requirements for organizations that accept rates, and business will become more accessible to a larger number of entrepreneurs.
This business has good prospects. It is easily replicated, which allows you to quickly develop the network. Betting activity can be combined with other areas of work with the same target audience. For example, many sports bar goers will appreciate the opportunity to bet on their favorite team. However, the opposite option is also possible, when the business plan of the bookmaker's office provides for the gradual transformation into a place of rest for fans. Thus, from a small point of acceptance of bets, you can create either a large network or a popular place for leisure activities and thereby ensure yourself a good income.
* Calculations use average data for Russia
In Russia, gambling has been outlawed for several years now, and it can only be carried out in specially designated gambling zones. Keeping your own casino in the past decade was one of the most profitable types of business, and now it is an almost hopeless area. But the law of 2006 did not prohibit the activity in the cities of another type of companies that also earn on gambling. These are bookmakers, which, although they have certain requirements for conducting their business, are not thrown out of the settlements.
In this activity, the main risk is the emergence of new restrictions from the legislation. And although in the latest version of the law, which was adopted in July 2014, there were some indulgences, it is still worth initially counting on the fact that bookmakers can be outlawed or forced to leave urban areas. Therefore, from the very beginning, you need to have at least a permanent lawyer who can advise the entrepreneur and support the business legally. However, the same editorial made legal the association of bookmakers, which can now organize self-regulatory organizations. Such organizations are non-profit, but membership in them for new players is actually the only way to start doing such a business. The fact is that a license to conduct betting activities is issued to a company only if the size of its net assets is at least 300 million rubles. This is not a typo, this is the amount that an office that accepts bets and is engaged in sweepstakes should have.
At this point it is worth dwelling in more detail. From the provisions of the law follows the need to have an authorized capital equal to the above amount. It is clear that a novice entrepreneur cannot have so much money, so it may seem that the road to this business is closed to small entrepreneurs. However, no one obliges you to open your own company, and you can join an existing bookmaker as a partner. Self-regulatory organizations of bookmakers can help to join their already existing association, to solve some issues. Since an SRO can be formed only if it includes at least 10 participants, it turns out that not 300 million are required from each, but “only” 30. But 10 participants is the minimum that should consist of SRO, that is, with an increase in its members, the cost of the entrance fee is gradually reduced. At the same time, it is probably not entirely correct to call these 30 million an entrance fee, because the entrepreneur does not give these funds away, but has them and can invest them in his business. Now, if an SRO has 1,000 members, then the amount of the authorized capital of each of them is reduced to 300,000. At the same time, one should not forget that an SRO interested in attracting new members may require much smaller amounts of authorized capital from them (if it has its own large funds). Already from this it becomes clear that a small bookmaker's office can be opened for little money (relatively little, of course). But we must not forget that the SRO also sets its own requirements for new participants and, quite likely, will require a real entry fee. Yes, and you will have to work, most likely, under a false name. At the moment, the number of large bookmakers that organize associations is small, but their number is constantly growing.
The very registration and licensing of activities is carried out in the local tax authority. Activity code - (OKPD 2) 92.13 Betting services. A legal entity is being formalized, which is necessary both for the state and for a self-regulatory organization. It is clear that first a business entity is registered, which subsequently submits documents for licensing. If you plan to work via the Internet (and this is a very profitable direction, and it is worth developing), then after obtaining a license, you need to contact the Center for Accounting for Interactive Rate Transfers (TsUPIS), which is a non-bank credit institution. Under the new law, players can no longer directly transfer funds to the bookmaker, which, in case of a win, credits funds to its client's account through any bank. Now this is done by special offices that will automatically write off tax on winnings. But TsUPIS is now actively organized by SROs themselves, while receiving a special license from the Central Bank of the Russian Federation. If you want to join an SRO, you should immediately pay attention to whether it has its own TsUPIS or at least established agreements with a third-party company. At the same time, you need to find out the conditions for cooperation with TsUPIS, because no one will work in this company for thanks, and it will have to be supported by the bookmakers themselves. Unsurprisingly, in the end, the commission to the interactive rates transfer accounting center will be paid by end users.
However, if you plan to open an office that does not accept interactive bets, agreements with TsUPIS are not needed. In this case, you need a license and readiness for constant checks. It is possible that SROs, which are interested in doing business legally and in accurate reporting, will also conduct inspections (this is their money, because membership in an SRO can also cost some money, often a percentage of revenue). You need to start such a business in those settlements where there is a conviction that there will be players, and the office itself should be located within easy reach from the player. Therefore, it is worth thinking about what to open several points. But each point must be an independent entity, which means that it must pay contributions independently, have a certain amount of its own authorized capital, etc. If funds are not enough at the very beginning, it is worth finding a passage and creating a bright and attractive sign. Today it is best to focus on ordinary people, without creating elite bookmakers with large bet amounts. After some time, there will be a lot of regulars in the office who make bets almost daily, regardless of whether they win or lose. Such players are called privateers, and are, in fact, just regular customers. It is clear that the lower the minimum bid, the more privateers there will be.
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The size of the room itself can be minimal. A simple pavilion, where the cashier and the necessary equipment is placed, is the most budget option. At the start, you will only need two people to work in shifts, but sometimes it is advisable to work around the clock, and two employees are not enough. In addition to the increased number of cashiers, guards will be needed, because in the case of accepting cash payments, the money will be in the cashier. And here it is necessary to organize security not only on the spot, but also the possibility of calling employees of a private security company and the police. A security guard is also needed in order to check the age of visitors, which cannot be less than eighteen years old.
The equipment you need is the most necessary - this is simple furniture, as well as a computer. If you open not a simple pavilion, but a full-fledged institution, then you need to arrange seating for visitors, as well as hang TVs on the walls, because some people will be interested in following the sporting event they bet on "without leaving the cash desk" . In this case, the prospects for conducting additional business (from a vending machine to a small bar) open up, but several people must also keep order, otherwise people who are annoyed by the loss may unnecessarily actively show their dissatisfaction. Therefore, the arrangement of your office can cost as much as 50 thousand rubles, or much more, it all depends on the level of the institution. It should be noted that for the most part people do not need an additional service, the main thing for them is to place a bet.
Requires software to work. And here the entrepreneur has two possible ways to solve this issue. Firstly, it is to buy ready-made software that works and is successfully used by many bookmakers. This option, of course, is preferable, but it can also cost a very large amount. After all, the price consists not only of the cost of the programs themselves, but also of the cost of connection and configuration. Also, for each type of sports competition, if not a separate program, then a separate interface will be required, because horse racing and poker cannot be broadcast in the same mode. If possible, you can develop programs on your own or with the involvement of acquaintances or friends. In this scenario, savings are possible, but the resulting software will have to be tested in the course of its activities, which may cause customer dissatisfaction or difficulties in work. But if you develop your own good software, after testing and debugging it, you can start implementing it.
The betting business is somewhat different from any other, and is close, which is logical, to gambling. In the case of making money on someone else's excitement, you will have to set such rates and rewards that will attract customers. A special feature is that the entrepreneur himself directly participates in the totalizator, reducing, of course, his risks to a minimum, but not excluding them at all. At first, when the stakes are low, you can work simply by betting, but later you need to hire analysts to your staff who will monitor the situation on the global sports arena and identify risks and opportunities. The salary of such people is usually very high, but often it is a percentage of the proceeds, and they pay for themselves with interest. Indeed, without them, the entrepreneur is forced to be guided by his own considerations and well-known facts; that is, in setting rates, he risks almost as much as his clients. The probability of winning or losing will not change, of course, but if the stakes are set incorrectly, the risks increase. It cannot be said that the bookmaker will go bankrupt in one evening (unless more than one person came to him who unexpectedly won on a bet with a high odds).
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Tellingly, the betting business is to some extent seasonal. This is due to the fact that most bets are placed on football. Large and interesting championships for the majority of the population (there are 2 of them) are held every 4 years, but due to their schedule, every two years there is a stir and a craze for football. These days, even people who have never heard of sweepstakes make bets. The situation with the Olympics is somewhat calmer. Therefore, the bookmaker can make good money in the summer once every two years, the rest of the time being content with proceeds from less interesting sporting events. Gambling people will already bet on them, a simple man in the street will not spend his money on events that are uninteresting to him. Russians may be interested in professional races, horse races and even card game tournaments (poker in the first place), but the excitement is not to be expected. However, there are always many who want to win money, and summer football championships can be perceived as a time for additional earnings.
Now it is worth dwelling in more detail on the organization of a bookmaker's office operating via the Internet. The possibility of online betting was returned only in the latest edition (it generally changed the position of bookmakers), it was previously prohibited. There were entrepreneurs who worked semi-legally, placing their sites on foreign domains, which eliminated the need to obey the law of the Russian Federation. De jure, there were no violations, but since such sites were focused specifically on Russian players, de facto businessmen conducted illegal activities. The word "Curaçao" has become sacred, because this Caribbean state was especially loyal to the conduct of betting activities. Apparently, the state realized the futility of its bans, and legalized the Internet work of bookmakers in Russia again. Now it is enough to get your own website and accept online bets through TsUPIS.
In order to do this, the site must not only be created, but also promoted in the top of the search. This is done by special companies, which today have become especially numerous, but the cost of their services can sometimes reach up to 100 thousand rubles. The created site should be attractive to the client both from an aesthetic point of view and from a practical point of view. So, it is very good to organize the possibility of payments through all possible and existing payment systems today. For obvious reasons, it will not work through bank payments, people need efficiency and the ability to quickly deposit and withdraw funds. You also need to take into account the fact that your site will have to store the user's personal data (our very free state seeks to control all people already on the Internet) up to the TIN. However, this is logical, given that TsUPIS will deduct a percentage of the winnings.
The site provides great opportunities - to work with virtually the whole world in case of appropriate promotion, to reach a large audience and simultaneously broadcast and accept bets on almost all existing and ongoing championships and competitions. In fact, the idea of the state is not bad - to simplify the whole scheme so that the person who won the money would receive his winnings in the shortest possible time, already minus taxes. This makes the system transparent, efficient and relatively convenient (taking into account the interests of all parties, of course: the bookmaker, the player and the state). But how this will be implemented in practice is not yet clear.
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The bookmaker can earn completely different numbers. There is a certain rule according to which the prize fund of a gambling or totalizator should not be less than 70%, and in this case, the bookmaker cannot earn more than 30% of the amount of money accepted. At the same time, the current players do not seek to disclose this information, and one cannot be sure that even the tax authorities know exactly how much bookmakers earn in percentage terms. Sometimes you can come across statements that the bookmaker keeps only 10% of the turnover, but even with these figures, given the gambling of many players, you can count on a good income. After all the casinos were officially expelled from the cities, bets and sweepstakes remained the only legal type of business built on excitement. The position of lotteries is also ambiguous, which also experience some difficulties, but not as critical as casinos. In any case, a gambler now has the opportunity to play only on bets, so the number of visitors to bookmakers has increased after the adoption of the law. Considering that the state has recently softened its requirements for this business and even seeks to develop this area, one can count on the fact that its business, built on a sweepstakes, will flourish. Only you will have to act not alone, but in association with other bookmakers. Practice will show, perhaps it will be even better for everyone.
Matthias Laudanum
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The betting industry is one of the largest in the world in terms of turnover. The profitability of bookmakers' business, according to their own statements, reaches 8-10%, although the reality is likely to be significantly different.
Starting this business, you need to understand what level of profitability you expect. Unlike trade, catering and other business sectors, the profitability of a bookmaker's office is relatively low - up to 10%. This means that with a turnover of 1 million rubles, the entrepreneur will earn 100 thousand rubles a month.
The principle of the bookmaker's office is simple.
Every day the office offers a list of quotes for sporting events, which is called "line". Each of the outcomes of a sporting event has its own unique coefficient, which is necessary to calculate the amount of winnings.
There are offices that work for a mass audience and accept bets (from 20 to 5000 rubles) and for the elite. Basically, these are Moscow networks. Their minimum bet is 500 rubles. The average price category includes rates from 100 to 100 thousand rubles.
But a beginner cannot pull these turns, and therefore it is worth starting with small bets.
Of course, this business has a seasonality, closely related to world sports championships. Most bets are traditionally placed on football matches.
Consider the work of a Western bookmaker from the inside based on an example
Every day the bookmaker creates his lines, for which he finds out. the balance of power for a particular match to determine the probabilities of the outcome of that match. Of course, different offices may have their own vision of the outcome. And that means your stakes.
For example, in the match Eagles - Hares, the bookmaker believes that the chances in percentage terms are 50% -30% -20%. That is, 50% that the Eagles will win, 30% that there will be a draw and 20% that the Hares will win.
According to the European odds system, the line for this event will form as 2 - 3.33 - 5. This is done by simply dividing one by the percentage of the team's chances.
But then the bookmaker will not get anything if he allows the player to play along such lines. So he introduces a margin. For example, we will have a margin of 15%.
That is, the player will have to be 10% smarter (minimum) than the bookmaker in order to win. The alignment of forces with profit margin as a percentage will be 57.5% - 34.5% - 23%=115%. Or in the European format - this: 1.74 - 2.90 - 4.35.
He will give such a line to the player.
Let's say people put down the sum like this: $6,000 - $3,000 - $1,000.
What will the bookmaker say? What risks does it carry?
If the Eagles win, then the bookmaker will have to pay the players 6000$*0.74=4440$ and he will receive from the players 3000$+1000$ =4000$ and the total loss will be -440$.
If there is a draw, then the bookmaker will have to fork out for 1.90*3000$ =5700$, and he will receive from the players 6000$+1000$=7000$ and the total loss will be -1300$.
If the Hares win, the bookmaker will pay $1000*3.35=$3350 and receive $9000 from the players. Thus, the profit that he will receive will be $5650.
Now about the process of opening a business:
To open a betting office that belongs to the gambling business, you need to obtain a license.
The founder of a bookmaker must have experience in the gambling business. Otherwise, no one will issue a license to open a bookmaker's office. Therefore, often entrepreneurs are looking for an experienced director or offer a share in the business.
You need to enter the market with a certain line of rates (daily quotes) in order to stand out from the competition, which means you will need either a staff of analysts or partnerships with a large bookmaker. The subscription fee for providing a daily line and software is $300-500 per month.
As soon as a new office opens, experienced players immediately rush into it. Everyone knows: beginners make a lot of mistakes, which means there is a real chance to capitalize on inexperience. If the line proposed by the entrepreneur is fundamentally different from the proposals of competitors, the entrepreneur will be supplied with a large amount in a short time. Therefore, in order not to burn out at the very beginning of work, the bookmaker must have a reserve fund and limit the maximum bets.
The reserve fund must be replenished in case of loss and collected in case of winning. The size of the reserve fund depends on the volume of rates, turnover, which the entrepreneur is counting on.
For placing a bookmaker's office, the places of the highest traffic, in which men appear, are ideal. According to statistics, 95% of players are men who are interested in sports. In principle, a bidding point can be opened on an area of 4 square meters, and therefore significantly save on rent. Often bookmakers open on b
aze entertainment and gambling establishments (not rarely for a share of the profits).
From the equipment the new office will need a computer, a printer (for printing a check or cards), a copier (for line reproduction), the Internet. And of course the cashier.
Also, any self-respecting bookmaker network should have advanced betting software. You can buy an existing program, or you can write a program for yourself by paying developers for it (cost up to $40,000).
Today, many entrepreneurs want to open a bookmaker's office, but not everyone knows how to do it. There are several models of bookmakers, which will be discussed in this material. It will be useful to anyone who is thinking about opening a bookmaker's office.
Principle of operation
The main goal of any bookmaker is to extraction and maximization of profit. For the most part, success depends on the correctness of the forecast and the subsequent determination of the coefficients. They should be formed in such a way that even with the most incredible outcome of the event, the office does not incur losses.
Initially required determine the chances of all possible outcomes of an event. Let's say we're talking about a Premier League match between Manchester City and Sunderland. Among the many forecasting methods, statistical and expert methods are usually chosen. In the first case, techniques and methods of probability theory and mathematical statistics are used based on the results of measurements of past periods. In the second case, a poll of experts is conducted, who evaluate the chances of teams to win.
Using the selected forecast methods, a final percentage estimate of the probable outcomes of the event is compiled. Since Manchester City are significantly stronger than Sunderland and have a win, draw and loss ratio of 69/26/49, the outcome options will be:
- Manchester City win - 60%
- Draw - 15%
- Sunderland win - 30%
When translated into coefficients, we obtain the following values:
- Manchester City win - 1.82
- Draw - 6.67
- Sunderland win - 3.33
These are the so-called "fair odds" which will never get into the final tables, since in this case the office will be left without profit. Therefore, these coefficients are corrected, and something close to the following values is obtained:
- Manchester City - 1.65
- Sunderland - 2.90
- Draw - 5.00
Now back to probabilities. Their sum will be 115 percent instead of 100, since this includes the margin (profit amount) of the bookmaker. In our example, this is 15%, but in reality, CIS bookmakers usually take 5 to 10 percent for themselves. The margin value is taken into account when forming the coefficients. So, the odds are set and the customers have placed their bets. They were distributed as follows:
- Manchester City - 75%
- Sunderland - 10%
- Draw - 15%
That is, if the office accepted 100,000 rubles of bets, then 75 thousand were bet on Manchester City, 15 on a draw and 10 on Sunderland. Usually, clients prefer not to take risks and bet on the favorite team. Now let's calculate the result of the match for the bookmaker:
- Victory of Manchester City - 123,750 rubles of payments, 23,750 rubles of loss
- Sunderland's victory - 50,000 rubles of payments, 50,000 rubles of profit
- Draw - 43,500 rubles payout, 56,500 rubles profit
If Manchester City wins, which is more likely, the bookmaker will suffer losses. The odds of winning in the event of a draw or a Sunderland win are too low to take the risk, so the bookmaker should further underestimate the odds of the favorite team.
Predicting the exact distribution of rates in advance is a difficult task., but the favorite is usually known in advance. By artificially inflating the probability of his winning, the bookmaker can adjust the odds in a more profitable way:
- Manchester City - 72%, odds 1.18
- Sunderland - 25%, odds 4.00
- Draw - 18%, odds 5.55
This guarantees the bookmaker a reduction in losses, but still does not eliminate them. Having calculated the possible payments, we have the following amounts:
- The victory of Manchester City - 104,250 rubles of payments, 4,250 rubles of loss
- The victory of Sunderland - 60,000 rubles of payments, 40,000 rubles of profit
- Draw - 55,500 rubles payout, 44,500 rubles profit
Indeed, the bookmaker's office is again suffering losses. In reality, bookmakers tend to overestimate the favorite for this very reason.
An absolutely accurate forecast of the outcome of events and the distribution of bets is impossible in reality, there is always a possibility of a different outcome, so when opening a bookmaker, you should take care of a reliable forecasting and odds setting system that will protect your business from losses.
What you need to open a bookmaker
First of all, you have to find room for the future office. Ideally, this is a small room of 6-8 square meters, located in a sports bar and capable of accommodating a workplace for a manager, the equipment necessary for work and some free space. You also need to resolve all issues with papers, arrange insurance and conclude an agreement with a security company.
At the beginning of the office staff will consist of one or two managers who receive and process orders. At this stage, you will most likely perform the functions of a manager yourself - firstly, this will save a certain amount of money, which at first will not be very much. Secondly, this way you will delve into the many subtleties of this business and be able to recognize your client.
Later, you will be able to hire your own team of analysts, which will increase the cost of wages, increase the prestige of the office and improve the odds.
You will need set of equipment. It can be bought both new and used. Many large enterprises change equipment regularly, so if you are smart enough, you can buy almost new equipment from such a company for next to nothing.
For work you will definitely need:
- Computer (PC or laptop);
- Additional monitors;
- copier;
- Printer;
- Licensed software for bookmakers;
- Secure high-speed Internet connection.
The last point is especially important. If you decide at first to save on the provider and the connection, there is a high risk of vulnerability of servers with office data. This entails many problems, ranging from damage to reputation and ending with penalty payments to customers.
How much does it cost to open a betting shop
For getting licenses to open with the Federal Tax Service, you will need a bank guarantee in the amount of half a billion rubles. If you conclude a franchise agreement with a license holder, then it will cost approximately 150 thousand rubles, plus monthly payments in the amount of 15-30 thousand.
It is worth remembering that this type of entrepreneurial activity belongs to the gambling business and is subject to large tax- 125 thousand rubles. The profitability of this business is not very high - from 10 to 20 percent, depending on the choice of coefficients.
A small room is enough for a bookmaker’s office, therefore, for rent you won’t leave much - you can find a comfortable room of a small area costing about 10 thousand a month, the same amount will go to the insurance premium. At first, the staff will consist of two managers with a salary of 50-70 thousand rubles.
With the expansion and growth of the capitalization of your office, you will need the services of sports expert analysts, which can be recruited both from professionals who have left your competitors, and from among professional privateer players. Your own team of analysts will allow you to improve the odds calculation system and make your offer unique.
It is not worth saving on the wages of employees - this is the cornerstone of staff motivation.
Fixed expenses in addition to employee salaries, taxes, insurance and rent of premises can also include rental of specialized software, which will be needed at first and in the event that you decide not to form your own analytical department.
In addition, you should consider in advance equipment payment(monitors, computers, cash register and printer), payment Internet and security company services, as well as the future advertising your bookmaker. Here, the amount may vary depending on your financial capabilities and willingness to pay more for quality appliances and contractor services.
If there are not enough funds, then in the next article we will describe,.
Required documents
- Betting license or franchise agreement.
- Lease contract.
- Plan from the Bureau of Technical Inventory.
- Confirmation of the owner of the premises.
- Official guarantees of compliance with current legislation.
If you are going to franchise, you will also need:
- Certificate of registration of a limited liability company.
- Personal data of employees of the enterprise (not always required): passport code, TIN, photocopies of some documents and insurance number of an individual personal account.
- They may request a copy of the contract with a private security company.
Preparation of all documents for opening a bookmaker's office will take a month and a half.
Business plan
Before you start work, you need to draw up a document that defines short-term, medium-term and long-term goals, as well as methods for achieving them, it defines the performers and areas of responsibility. This is a document in which all the data of the enterprise will be spelled out to the smallest detail and the direction of its development in the future will be set.
The business plan is drawn up by the founders or authorized persons before the start of the office. It must contain the following:
- description of the bookmaker's office: a brief summary, location and opportunities, services, technologies used in the work;
- purpose, mission and objectives of the enterprise, ways to achieve goals, persons responsible for their achievement;
- organization structure (management, employees, staffing (see also) and staff costs);
- analysis of the market and competitors (description of the market, its segmentation, description of competitors);
- target audience (customers and their behavior);
- operating activities;
- financial plan;
- risk assessment;
- marketing strategy;
- social and corporate responsibility;
- exit conditions.
About other rules for drawing up a business plan.
How to open a bookmaker in Russia
The peculiarities of this business in the Russian Federation include stringent legal requirements, especially a heavy tax burden and requirements for office location.
There are a number of requirements for the location of the office - mandatory and unspoken. The legislation prohibits the opening of gambling establishments in capital buildings and structures, while it is forbidden to open offices in children's and medical institutions, at railway stations and buildings owned by the state or city.
As for the unspoken rules, it should be a place of high concentration of people, located on the first floor of the first line of development. It is desirable that the house was not inhabited. Remember that the vast majority of your clients will be men, so it would be wise to open an office in a bar or near a gym or stadium.
It should also be taken into account that due to high margins and lower odds, advanced privateers prefer foreign offices, and the number of players among the population is not so large due to domestic economic problems and low living standards.
The betting business in the Russian Federation began to flourish rapidly in the 2010s, after the ban in 2009 of casinos and gambling halls. Over the past 7 years, the number of license holders in the Russian Federation has grown from 5 to 27, and the annual turnover of this industry is estimated by experts at two and a half billion dollars. This business is perceived positively by government authorities, because due to the high tax rate, the regions receive impressive payments from business owners.
Establishment of a bookmaker franchise
Due to the high requirements (primarily financial) for a license, many entrepreneurs prefer to conclude a franchise agreement. In fact, the office becomes a branch of the existing network. It has obligations to the parent company, but it operates independently.
Betting networks provide support to affiliates by helping to train staff, providing licenses for special software and analyst reports, as well as helping with promotion.
Requirements that are put forward for applicants for partnership usually include the presence of space for opening a branch, a secure Internet connection, a minimum amount of cash to replenish the reserve fund, business skills and experience.
The cost of opening a franchise office varies from half a million to two and a half million rubles, this amount can pay off in the first two quarters of work. Different betting networks put forward different offers for franchise agreements, and before getting in touch with candidates, you should carefully study this market and choose the most advantageous offer.
Tip: find an entrepreneur who is already working on the franchise of your choice, and as a future colleague, ask him about cooperation with the license holder and about all the pitfalls.
Opening a bookmaker's office on the Internet
The online betting market is currently on the upswing. New players appear every day, seeking to move the mastodons of online sweepstakes, an increase in the audience and the volume of bets is regularly recorded. This is due to the prospects that many investors see in bookmaking in the vastness of the World Wide Web.
To open an online office, you will need to go through a standard licensing procedure. In addition, you will need to find a ready-made script for the bookmaker's office and buy hosting along with a domain - at this stage, everything is quite simple.
To promote the site will require a lot of resources and effort. You will need either additional staff (a programmer, an SEO optimizer and a site administrator), or a contracting organization that will be engaged in promotion and will be able to provide technical support. Promotion of the bookmaker's website will take 3-4 months, its cost depends on many factors and averages 150 thousand rubles.
Try to find competent specialists with a good portfolio. This will save time and effort that you will spend on inexpensive services of laymen and correcting their mistakes. Paying a professional in any case will pay off.
Is it profitable to open a bookmaker's office?
Due to the low profitability, the income from a single point may seem too small and not worth the effort. However, if you build a network correctly, profits will grow, and with the growth of the network, you can think about expanding influence on smaller offices, offering them partnerships and receiving additional income.
10 interesting facts about bookmaking (video)
From the video, you will learn about 10 interesting facts about bookmaking that will help you create and develop your own bookmaker.
In this material, we have tried to reveal to you the essence of the betting business and the nuances that should be taken into account when planning the creation of this business. Bookmaking is one of the few gambling businesses that have remained legal in Russia and other CIS countries. The gaming betting market is a very promising investment and we sincerely hope that your experience in this business will be successful.
