Are you thinking of starting a profitable business in Nigeria? You may want to try Sports Betting Business. It is one of the most profitable business you can ever try out.
Nigeria’s betting industry is a fast-growing area of the economy. This industry has further developed with the increase of mobile and internet penetration.
Like it or not, Nigerians are enjoying their moments at various betting houses, spending close trillions of Naira at game houses across the nation.
Whether you like it or not, moral insinuation is now secondary. If you don’t have your skin in betting or youth empowerment as some gamblers have put it, sit back and watch.
Fact is, sport betting has dominated the streets and the industry size has also been projected to cross trillion mark.
Some Online Sports Betting Operators include….
Sports betting business is huge in Nigeria and this article will show you how to start your own sports betting business in Nigeria.
With the few number of bookmakers (sports betting companies) available it is not too late to start your own sports betting company.
How Profitable is Sports Betting Business In Nigeria
Sports bet is not just about placing bets on football matches rather it could be any sports as a lot of sports betting software making vendors have seen the need to involve other sports which people watch just to attract more customers (sports betting players).
The rules for making money as a sports betting agent are simple. You make money from your business anytime bookies make money too.
And the truth is that bookies make money every second as a result of the huge number of people staking games here and there on a daily basis. As a sports betting agent, you earn money either from the total amount of money people lose or based on a fixed commission from your sales.
Sports Betting Business In Nigeria And It’s Market Structure
This business like every other business has a gestation period before breaking-even and paying off sunk capital. You will have to run the business from secondary income sources until it can sustain itself.
Betting companies pay commissions based on sales, and sometimes, net-profit made. The net profit is the difference between the gross sales and gross winnings over a period.
Bet9ja, for example, offers a 10% commission on sales made every week. Merrybet offers a 50% commission going by what is on their site.
How To Start a Sports Betting Business In Nigeria
1. Learn the Skills
One who intends to open a betting shop needs to have full knowledge of using simple computer software programmes and importantly how to run a business.
2. Get the Certificates And Licensing for Betting Shop In Nigeria
To begin in the sports betting business, you will need to sign up for a franchise with a betting company. This will allow you to use the company software, name, logo, and reputation which will help in reducing your risks as a newcomer. Most betting companies will require you fill out an online form beforehand. Each betting company comes with its own unique guidelines commission rates etc.
3. Finance needed for Betting Shop In Nigeria
Conservatively, you will need between 250,000 to 400,000 to set up, depending on your location. At least, there must be startup fund of that range for better setup of the shop.
4. Tools / Equipment / Machinery Needed for Betting Shop In Nigeria
A shop: 100k to 150k per annum is good enough for a shop depending on the location. Try to go for a 12ft by 15ft or larger shop. The bigger the better as your customers will be comfortable while waiting for their turns.
Laptops or Desktop computers:
A 10ft x 6ft x 1ft counter made of wood. This helps to separate your cashiers (attendants) from your punters (customers). [10k to 20k]
Chairs (for cashiers) and benches for customers. [10,500k to 15,000k]
A decent 2.2kva generator. [60k to 90k]
Internet Modem. [2k to 6k]
You most likely will be given the following items by the company if you pay their signup fee of about 50k to 500k:
Thermal receipt printers. New POS-58 or POS-80 units come with a roll paper.
A banner to advertise your business.
An accounting software on their platform.
READ: HOW TO START A TILES BUSINESS IN NIGERIA
5. Choose a Good Location for Betting Shop In Nigeria
Rent a shop only because it is rightly located. Your shop should be in a densely populated area in a mix of 70 residential/30 commercials is just fine.
6. Technology Needed for Betting Shop In Nigeria
It is recommended that in choosing an internet modem, you go with any of the LTE providers as faster speed equals faster money making. The likes of Spectranet, Smile, and Swift will serve well in areas where they have coverage. But where you do not fall within any of these areas, use the 3.5G GSM providers.
7. Startup/Launch Tips for Betting Shop In Nigeria
As a cautionary measure, make sure you have a secondary source of income to fund the day to day expenses of the business prior to the break-even month.
Management Of Betting Shop In Nigeria
In managing a Sports betting shop, try as much as possible to enforce that your cashiers use the internet strictly for business and nothing else. If possible, work with the service providers to restrict access to all websites apart from a few.
Staffing: You may start with two cashiers, but it is advisable to have up to four.
How to Promote Betting Shop In Nigeria
To boost patronage, you may need to confirm what customers usually play in your area to know which events to offer. Live football games also tend to draw more customers to your shop.
READ: HOW TO START FISH FARMING BUSINESS IN NIGERIA
Ensure your shop is situated in an area where there is adequate power supply as you would spend less on generator and vice versa. Also, most bet shops go for the monthly remuneration. However, you can suggest using a salary + commission basis. This is good as it can increase staff motivation.
That was a brief expose on what it entails to set up a successful betting shop in Nigeria. If you have plans of starting a betting shop business anywhere in Nigeria, and anytime soon, these tips would and should give you a jumpstart on success.
Betting shop business is a highly lucrative venture in Nigeria.
Its success and sustainability to a large extent depend on the operator. Get a good operator. Get all required machines and equipment.
Employ efficient management strategies and in a short time, you will shine on to success. Do not be discouraged by the cost of setting up a sports betting shop as it is easy to identify areas where cost can be cut and cheaper deals can be negotiated