How to start betting business?

How to start a betting company avoiding high risks? This question is asked quite often by those who plan to invest in this industry.

Betting is a profitable business that draws the attention of many potential customers. However, before investing, it is better to learn about some nuances.

 

• What is betting business?

Betting is the wagering of money on political, musical and sports events. This type of business pays off quickly and allows you to get a significant financial feedback. However, many betting providers note that the profit from the business is about 10-20% of the money turnover.

There are two options for launching a betting business: organizing your own business or buying a franchise. Let us consider the first option, which implies the creation from scratch.

 

• Where to start from?

The first step is to obtain a license. It is issued by the federal tax service after various inspections.

To obtain a license, you must provide several guarantees:

♦ owning at least 1 billion rubles of net assets;

♦ 500 million rubles of bank guarantees.

 

• Is there another option?

You can join an existing license as a partner. This will require the following documents: certificate of LCC registration, rental agreement, TIB plan and official guarantee of the premises owner concerning the accordance with the legislation of the Russian Federation. Also, personal tax reference number, ID copy and Insurance Number of Individual Ledger Account of at least three betting company employees are required.

Usually, to join the license, 150,000 rubles are to be paid at once and 30,000 rubles on a monthly basis. In Russia, about 30 licensing companies are operating offering similar terms.

 

• How to choose premises?

In order to join a license, you will have to negotiate the approval of future office premises with the licensee. The premises should correspond to statutory regulations. For example, it should not contain medical, educational, children's, resort establishments.

Think about its location in advance. It is better to be surrounded by sports bars or close to human traffic points. Some experts recommend opening betting shops in residential districts.

 

• What next?

After the approval of premises, it will be possible to enroll a bookmaker company in the license. Any private entrepreneur or LLC can be enrolled in the license. The licensed company opens a sub-unit with you as a director at the premises where your office is located.

 

• What equipment is needed?

Lounge area equipped with computer and TV will be needed in order to allow customers to follow the course of events. Also, betting offices usually purchase software for accepting and analyzing bets. The market is filled with different specialized software, which has similar functionality and price.

 

• How much does it cost?

Preparation of all necessary documents: ~200,000 rubles.

Small premises rent: ~15,000 rubles.

Premises repairs and design change: ~50,000 rubles.

Purchase and installation of equipment: ~70,000 rubles.

Promotion and advertising expenses: ~15,000 rubles.

Total: ~350,000 rubles.

Prices may vary depending on the region and requirements, but to open a small betting office, this amount is enough.