The roots of modern betting shops can be traced back to the United Kingdom in the early 1960s, where bettors could place wagers on sports events (primarily horse racing) outside a racecourse as they watched it air live. Initially, this new approach to bookmaking was wildly popular, prompting many more locations for such activities to pop up all over the world – from the largest cities all the way out into its most rural areas – to meet growing demand.
In this blog, we will be exploring the intricate procedures of modern betting shops and how to start a retail bookie business. Additionally, you’ll learn about essential software for establishing such an endeavour, various types of sportsbooks available, as well as licences necessary for running a land-based gambling venture.
Perspectives of opening a retail betting business
If you’re looking to break into the lucrative betting business, even with a minimal start-up of only one or two shops, now is an ideal time. Legal alternatives are limited in this sector and so it’s a great chance for ambitious entrepreneurs planning to make money from sports competitions held every day.
Moreover, considering how many sports lovers are out there in Kenya and other African countries, the business is certainly expected to perform well. With bookmakers providing bettors more opportunities than ever before, the industry itself flourishes year after year and this in turn opens up prime opportunities for those ready to invest.
Investing in this business offers various advantages, such as the potential to rapidly expand your initial capital, short-term earnings, and legal and honest income opportunities with relatively low startup costs. Moreover, you’ll benefit from a cutting-edge management system that ensures secure environments along with access to an expansive range of gambling products.
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Top factors to consider when starting a retail betting business
Bookmaking is actually one of the most rewarding areas, but before you venture into this lucrative industry, it’s essential to know the business: understanding markets and wagering events will prove invaluable, as well as balancing the odds so they remain profitable.
Additionally, you would need to comply with regulations and pay taxes to the government, which can affect the profits and in some countries, betting shops face stiff competition from online betting sites, which may offer better odds and convenience. Betting shops can mitigate this competition by providing excellent customer service, bonuses, and promotions to regular and loyal users!
How to start a betting shop in Kenya?
In Kenya, there are a few key steps you need to take before opening up your betting shop.
- You must first obtain the proper licenses and permits from the government to comply with all relevant gambling laws. This process can be quite involved and time-consuming, but it is essential for operating any sort of business in this country. By the way, if you open a betting shop using a franchise from INFOINTSALE, the provider will help with obtaining the licence for you, so you will save a lot of time on that step.
- Once you have the necessary licences, it is important to find suitable premises for your business. Depending on your intended size and scope of operations, this could mean anything from a small kiosk at a shopping centre or street corner to an entire storefront in one of the larger cities like Nairobi. Location is key here, as you want to ensure your shop is accessible and visible, while also considering the local customer base.
- Next up, you need to find a good supplier for your betting services. This could be an online bookmaker that allows agents to enter the business under their brand, or it could be a software provider that offers ready-made solutions. You should compare their offerings and pick the one that best meets your needs.
- With all these elements sorted, you can finally begin setting up the shop itself. This might include installing betting terminals, creating a seating area for customers if this is part of your plans, stocking it with merchandise such as snacks and drinks, and setting up advertising to attract more people.
- Finally, it is essential to develop good customer service skills and train your staff in how to handle customers effectively. This should include dealing with any disputes that may arise and providing a safe, secure betting environment for them.
When you have all these bases covered, you are ready to open your very own betting shop in Kenya and with the right strategy and dedication, you can develop your business as a successful bookmaker in a long run.
How much does it cost to open a betting shop?
The cost of opening a betting shop can vary significantly depending on the setup you choose. However, if you partner with top companies Infointsale, the setup fee for their software is 0! This means that your primary costs will revolve around purchasing essential equipment like computers, televisions, and furniture for your location.
With this affordable entry point, you’ll only need to focus on creating a well-equipped, welcoming environment for your customers to place bets and enjoy their experience. Providers’ support will allow you to launch your business smoothly, minimizing initial expenses while maximizing operational efficiency.
The necessary equipment and requirements for a retail bookmaker shop
Starting a betting shop does not require large investments in equipment, thanks to tailored solutions, you can get up and running without blowing your budget.
For example, Infointsale company offers unique opportunities for entrepreneurs to become agents by opening their shops and promoting a tried-and-tested range of products. Their white-label solution includes a comprehensive selection of betting markets and games to keep your customers happy, including live games, virtual sports and interactive betting games.
The requirements for opening a betting shop in Kenya include:
- Ground floor space (at least 30M2)
- Betting permit / licence from regulators (can help you with that)
- Location at least 100 meters from the nearest main church or school
- Back-up power generator in terms of electricity issues
- Stable internet connection and necessary inner equipment (counters, chairs, DSTV)
You must also have enough funds to cover day-to-day expenses to run the business, including payments for rent, electricity, internet, staff salaries, and cash flow for cashiers. General renovations, including repairs, wiring, and painting are also necessary. Infointsale will provide you with the necessary information and training, they also help their agents with obtaining the licence to get business on track fast.
To become an agent, you need to pay a security deposit and provide pictures of your shop premises for verification. Usually, betting companies also offer support in setting up unique markets and betting odds for punters to ensure the success of your business.
Promoting your retail betting shop
Now that you’ve set up your retail betting shop, it’s time to promote it to attract customers! There are several marketing channels you can use to promote your business:
- Local advertising – Consider advertising in local venues or radio stations to promote your betting shop. You can also consider placing ads in local newspapers, sports magazines, and online platforms.
- Social media – Use social media platforms like Facebook, Twitter, and Instagram to promote your betting business. Share updates on sports events and odds to engage with potential customers.
- Sponsorship – You can also sponsor local sports teams or events to get your brand out there and build a strong reputation.
- Loyalty programs – Create a loyalty program to incentivize customers to return and bet with you. Offer rewards like free bets or discounts on future bets.
- Referral programs – Encourage your existing customers to refer their friends and family to place wagers. Offer them incentives like free bets or cash rewards for every new customer they bring in.
How does a betting shop earn money?
Betting shops generate revenue by offering events and odds for various sports, such as virtual events. Gamblers can reap winnings depending on the associated odds if their guess is correct, however, in any incorrect guesses, bookmakers gain a profit from what’s known as the house edge. This small percentage taken from bets (included in the final odds) goes to the betting business – ensuring that it continues to earn money no matter what happens.
The bookmaker business industry is a highly lucrative global enterprise, capable of yielding up to 15% return on investments. It all relies upon the strategy and objectives set by the owner – with just 1 million turnovers, they could easily be making 100–150 thousand in gross profits. With such rewards, it’s no surprise that this sector is thriving.
Get in touch with us!
Ready to transform your betting business with Kenya’s leading white-label betting shop software solutions? Infointsale Kenya is your key to easily opening betting shops across the country. Don’t leave your success to chance, our customizable turnkey solutions are designed to provide you with the most efficient, effective, and seamless business operations.
Get started today! Complete the contact form below, and our dedicated team will reach out to you shortly. We can’t wait to accelerate your journey in the betting industry.