The global sports betting market is riding high in its boom phase, and there are no signs of this industry coming down, at least any time soon. So, if you are an ambitious startup owner or an enterprise investor looking to enter the iGaming and specifically sports betting space, this is the right time.
With a potential to generate over $94.89 billion by 2029, the numbers surely paint a profitable picture for the time ahead. But whether you can get a share of this profit pie depends on the sportsbook software. The right software can seal your future for success, but only if you make the right choice.
Here’s your food for thought to make a choice between sportsbooks for startups or enterprises.
The Difference Between Sportsbook for Startups vs Enterprises
Startups and enterprises both want the same thing: a secure, responsive, and legally compliant sportsbook software. But both of them are not ready to invest the same amount of money, take the same risks, or even share the same requirements.
- A startup needs quick market entry so their sportsbook software will be an MVP that’s built and deployed quickly. For this, they might prefer to use a white-label or turnkey solution, but with some customizations related to branding, features, and odds management, etc. The focus will be on adding the key features and operating with lean and small teams.
- An enterprise will need a customized platform where everything is built to their needs. Advanced features, multi-region support, multiple currencies, languages, and an AI-enabled odds engine are some of the things an enterprise sports betting software integrates. On top of this, they will need a robust backend structure that lets them scale and perform according to the market demand.
To sum it up, as a startup owner, choose a sportsbook software provider who can deliver the solution you need faster and at cost-effective prices. But an enterprise with its big pockets needs an end-to-end solution and complete platform control.
Cost Difference Between a Startup and Enterprise-Level Sportsbook Software
Cost is one thing where most of the sports betting platform operators decide which way to go. Startups with their smaller budgets look for the most value for money, and enterprises with big budgets look for a product that suits their vision and branding goals.
- A startup owner has different choices, even with their limited budgets, to launch a sports betting software;
- White label or turnkey sportsbook software: Ready to use and pre-licensed templates are launched with some customization and can cost between $15,000 and $40,000.
- Customizations: Personalized design, features, odds, and betting engine can cost between $25,000 and $50,000.
- Third-Party Integrations: The necessary integrations will increase the total cost by $5,000 to $20,000.
- Enterprises aiming to launch an online sportsbook software will need the following;
- Customized solution: A fully customized and scalable platform with bespoke features, design, and structure will cost between $100,000 and $200,000.
- Backend Systems: Built to last and robust backend systems provide the foundation for the sportsbook software and business will cost around $75,000.Integrations and Security: Multiple integrations to manage customers, user identity, and multiple payment gateways will increase the total cost by $30,000 to $80,000.
- Licensing: Depending on the jurisdictions and region of launch, the licensing costs vary.
Startups are spending less money on the entire project, but they get limited control over the sportsbook operations. Enterprises are in for the long race and need complete control from day one on performance, compliance, and everything else. This gives them the freedom to scale at will and grab the opportunities.
Making a Decision | Sportsbook for Startups or Enterprises
So, shall you start small and scale over time, or build a high-end solution from scratch and enter the market with a bang?
When’s to Start Small?
- New Markets or New Audience: Choose to be a startup sportsbook operator when you want to validate the concept with a new audience or enter a new market.
Sports betting isn’t legal in several countries across the world, so in countries that have recently legislated it or are new to this form of entertainment, take the lean approach.
- Limited Capital: Need to launch fast, but don’t have enough capital to take the MVP route. Also, when you want to avoid high upfront costs and long development cycles, going small is the best option.
For this purpose, choose a white-label sportsbook platform to launch quickly. But once you start to get some traction and revenue starts to flow, switch to a custom software development approach.
When to Go Full-Scale?
- Need Complete Control: Enterprises think big and want complete control of the sports betting software. If you are one of them and need control over risk management, odds, betting limits, trading, and everything else, a customized solution is the best way ahead.
- Launch at Multiple Locations: As enterprises are investing heavily at once, it’s possible to add features relevant to different regions and demographics. Plus, they can build a platform that follows the legal and tax requirements of all regions, which is a smart move. As launching in one region and then making changes at an extra cost for other changes increases the overall cost.
Going full scale from day one gives you better strategic advantages, but ensure that you have a strong vision, funding, and patience.
To Sum it Up
Whether you are a startup looking to get your first set of sports betting enthusiasts or a visionary who wants to make their mark across continents, consider your goals, budget, and growth prospects.
Regardless of your decision, TRUEiGTECH is a sportsbook software development company offering the best-in-class solutions. Specializing in delivering white-label to fully customized sportsbook software solutions, TRUEiGTECH also provides API integrations, post-launch support, and legal assistance.
Get in touch with the TRUEiGTECH sportsbook software development to know more.