Sports Betting Business
In Nigeria, the Sports Betting Business is one of the businesses raking in millions for a lot of people every day. An interesting fact is that Nigeria is highly populated with many young sport lovers.
If you are considering a sports betting business, you must also know that there are different types of sports betting. There is pool betting, casino games, poker, online betting among others. So, when you start, choose a niche or a combination of some of them.
It’s not an arguable fact that there is a huge profit in the sports betting business. This is evident in the number of betting shops you find around. As a matter of fact, sports betting is beginning to take over every street and junctions in Nigeria. And the best part is that as many as these shops are, you will always find troops of people there trying their luck.
Another fact about the sports betting business is that more often than not, the betting companies win. The tremendous growth in this industry in the past five years is quite astonishing and there’s no better time for you to have a piece of the pie than now.
Actually, sports betting is a game of luck. You win some and you lose some. The possibility of you using as low as N100 or N200 to get thousands of naira is what makes many to keep trying their luck. So, getting customers for your new business is not going to be a difficult thing to crack.
How Does The Sports Betting Business Work?
Basically, the person placing the bet is called a punter. The punter predicts the outcome of a particular match with a certain amount of money. If after the match, the prediction comes out right, the sports betting company pays the punter an agreed amount of money but if otherwise, the punter loses his money. As said earlier, it’s a win or loses game. Sports betting is a game of luck.
Having said that, let’s look at the step-by-step guide of how to start sports betting business in Nigeria.
Steps To Open A Sports Betting Business Shop In Nigeria
Step One: Register Your Sports Betting Business With CAC
The first step to structuring your business in Nigeria is to get it registered with Corporate Affairs Commission (CAC). Usually, you can either register your business as a business name or a limited liability company.
If you are starting a small business in Nigeria, it is always advisable to register as a business name then later upgrade to a limited liability company as you grow. But, sports betting is not one of the businesses you can register as a business name.
You have to register it as a limited liability company and the minimum share capital for the business is 5 million. So, it is imperative to know that starting a sports betting business is capital intensive.
That said, you can get your business registered by visiting CAC‘s portal. However, due to the peculiarity of the sports betting business, I will advise you to use a professional.
One of the firms you can trust with any business registration in Nigeria is ReDahlia. ReDahlia is located at 43B, Emina Crescent Off Toyin Street, Ikeja, Lagos. Interestingly, you don’t need to move an inch to register your business. You can send all the registration requirements to them via email and once your certificate is ready, they will have it delivered to your location.
With your registration certificate, you will be able to open a corporate account for your sports betting company, and also get your Tax Payers ID.
Step Two: Get The Required Licenses
The gaming business is one of the highly regulated businesses in Nigeria and it’ll be in your best interest to acquire the licenses before starting. There are several regulators in Nigeria to get approval from.
The main ones are the Nigerian Investment Promotion Commission (NIPC), the National Office for Technology Acquisition and Promotion (NOTAP), and Special Control Unit against Money Laundering (SCUML).
In addition, some operators are required to get a Capital Importation Certificate, a Tax Identification Number, and register for Value Added Tax (VAT) from Federal Inland Revenue Service (FIRS).
Furthermore, you are required to visit the National Lottery Commissions of Nigeria to apply and obtain a license.
But if you are starting as an agent under a registered and licensed company, you wouldn’t need to get all the licenses.
Step Three: Register Under A Betting Company
This is for those who do not have the monetary capacity to establish their own sports betting company. Registering under an established betting company as a franchise will reduce your startup cost.
A franchise gives you the privilege to ride on the established reputation of the company. You can use their name, logo, and betting software. If you choose this option, all you need to do is pay a franchise fee.
Research the best betting company to register with as each of them has its commission rates. For instance, Bet9ja pays a 10% commission rate on sales every week.
Here are some of the popular betting companies you can register with:
Bet9ja.com
This is one of the highly ranked and popular online betting companies in Nigeria. There’s no form of sport you are interested in that you won’t find on Bet9ja.com.
Nairabet
Nairabet is the first online sports betting website in Nigeria. It was founded by Otunba Akin Alabi.
Betking.com
This is another popular betting company making waves in Nigeria. You can find its headquarters in Lagos State and their shops are scattered across Nigeria.
SportyBet
Sportybet is quite new but gaining ground in a short while. The company offers different types of betting including tennis, football, rugby, cricket, basketball, volleyball, ice hockey, darts, and handball.
Bet365
This is a British online gambling company based in the United Kingdom. Globally, Bet365 has more than 45 million customers and employs around 4,300 people.
Betway
This is also a leading online and mobile sports betting platform. It began in 2006 and since then, it has been the favorite of many because of its user-friendly interface and exceptional customer support.
Note, these are not the only betting companies in Nigeria. You can conduct your research to select the one you are more comfortable registering with.
Step Three: Get A Betting Shop
Having a physical location is one of the requirements before you can be issued a license to operate a sports betting company in Nigeria. So, rent a suitable office where you will carry out your business transactions.
In addition, people will find it difficult to trust you with their money if you don’t have a physical location. Renting an office facility is not limited to bookmakers or promoters (pool), it applies to agents as well. It’s also advisable that you get a large office that can accommodate a large number of persons.
Step Four: Get The Necessary Equipment
After securing a shop, purchase the necessary equipment needed to start. The basic equipment is computer systems, UPS, printers, TV sets, furniture, and monitor. All this equipment is relevant to the success of your sporting business.
Actually, you don’t need to get new sets of equipment when starting. But if you can afford new ones, get them as they last better and comes with a warranty. In addition, you should also factor in internet costs in your expenses.
Step Five: Get Professional Betting Software
This is about the most important decision you will take in your sports betting business. The betting software is where all the business transactions will be carried out and regulated. Hence, take your time to select a good software provider. Check reviews before settling for one.
Step Six: Open An Official Website
Having a website is very important for your sports betting business because that is the channel you’ll use to announce the various winners daily. Also, your website is the number one place people can visit to see the operations of your sports betting company.
In addition, your website is the intermediary between you and your customers. Every piece of information you want to pass across to your customers and the general public goes through the website.
Once you’ve created a user-friendly website, the next thing to do is to launch it. You can run adverts to promote the site for investors and sports betting lovers to see.
Step Seven: Choose A Payment Service Provider
Sports betting business is an online business and there’s a need for an online payment gateway that’ll ease payment transactions. Sports betting is made easy when punters can easily make payments with their cards and get the transactions done within a short time. Importantly, ensure your payment gateway is secured because an unsecured payment gateway is prone to attacks and drives away potential customers.
Step Eight: Expand To Other Locations
If you are starting this business from scratch, you cannot make much profit if you only have one location. To grow and fully tap into the opportunities in the sports betting business, open branches all over the country to reach a wider audience.
Alternatively, you can consider franchising your outlet to people interested in running the business but don’t have the required capital to begin. Even though sports betting is an online business, many still prefer to visit the betting offices to place their bets.
Step Nine: Promote Your Sports Betting Business
If you are conversant with the sports betting industry, you will agree with me that the competition is stiff. Therefore, if you want to penetrate the business as a newbie, you will need to engage in aggressive promotions. Your marketing strategy must be strong and consistent. You will need a lot of money to run the type of campaign that will make an impact.
One of the ways to promote your sports betting business is to run a TV/Radio advertisement. Also take advantage of social media, handbills, posters, newspapers, and online advertisements.
The Legality Of Sports Betting In Nigeria
One of the questions you may want to ask is if sports betting is legal in Nigeria. The simple answer is ‘yes’. The National Lottery Regulatory Commission regulates all forms of gambling in Nigeria.
In 2005, the lottery was legalized with the National Lottery Act. And, gambling can be found in Chapter 22 of the Criminal Code Act of 1990. So, any citizen of Nigeria above age 18 is free to engage in any form of gambling.
If you are operating your sports betting business in Lagos, it is important to note that the body regulating lotteries in Lagos is the Lagos State Lotteries Board (LSLB). LSLB was established by the Lagos State Lotteries Laws Cap L89 2004 Laws of Lagos State.
There you have it! Starting sports betting business in Nigeria is that simple.
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