The bookmaker business in terms of its profitability is very close to slot machines, where in civilized countries their owners receive a profit of at least 70% of all the money collected by the machine. Most people are put off by the high cost of entry into the bookmaking business.
Bookmaker franchise Zenith
This company offers a partnership in the form of opening a franchise office for betting on sporting events. The Zenith office offers its partners:
- Advisory and information support
- All software necessary for the operation of the item
- Daily updated lineup of events
- Website for accepting bets on the Internet
The franchise buyer will need:
- Already or for an individual certificate (PBOYUL) Own or rented premises
- Availability of office equipment (computer, printer, barcode scanner, Internet connection)
- Experience in this field
- Financial reserve 500-600 thousand rubles.
Bookmaker franchise: benefits for contracting parties
The transaction is beneficial to both parties: the buyer avoids colossal expenses at the initial stage, and the seller expands his business without any special investments.
Partnership with a franchise buyer requires its owner in this case to:
- Assistance in personnel selection and training (HR consulting)
- Providing rental or sale of necessary equipment
- Granting rights to use during the term of the software franchise
- Advertising promotion of your partner’s services on the market
Requirements for a franchise buyer
- When applying for a franchise, the most important requirement should be considered having your own premises or a signed one-year rental agreement for premises, which is planned to be used as a betting point.
- The technical conditions must satisfy the franchisor. The premises must have a separate entrance, an alarm system installed, and a cashier's workplace equipped.
- Room area at least 6 sq. m.
- Among the equipment, the cashier must have a computer with Internet access, a printer for printing game tickets, a photocopier for duplicating the line of events, a safe for storing money from bets and payouts of winnings, and a cash register for reporting.
The franchise provides that the software is transferred for use to the franchise buyer for the duration of the franchise agreement, along with training for the franchisee’s personnel to work with it. Purchasing licensed software on your own will cost tens of times more.
How much does a Fix Price franchise cost and what requirements does a well-known company impose on a franchise buyer? You can find out
On the market, full-fledged software for bookmakers costs an average of 10-15 thousand dollars.
Bookmaker business in Russia: financial prospects for a franchise buyer
The payback period for funds invested in the purchase of a franchise depends mainly on the volume of gaming turnover. Even underestimated statistics obtained from the bookmakers themselves suggest that the income figure is at least 40% of the total amount of bets.
Under the franchise agreement, the franchisor will have to pay on average 10% of the total amount of accepted bets every month.
In trade there is the concept of average customer receipt; this is the average size of purchases in a store made by one buyer. In the bookmaker business, essentially the same concept of average bet applies. In Russia at the beginning of this year, the average rate was 150-200 rubles.
Accordingly, 200-250 accepted bets daily bring an average of up to 40 thousand rubles to the cash desk, and per month the volume of accepted bets can exceed 1 million rubles. The franchise seller will have to pay about 100-120 thousand.
A calculation, even a modest one, shows that the bookmaker has an amount of between 250-300 thousand rubles left each month to pay for the work of 2 cashier operators, a security guard, and an accountant, rent of premises and current payments for services (Internet communications, light, alarm).
Nuances of doing business
The most significant capital for the bookmaking business in Russia is considered to be a loyal client who bets on sporting events at least 10 times a month. The higher the number of such clients, the higher the profitability of the bookmaker business.
The profits of betting points increase sharply (5-10 times) during the period of major sporting competitions: World and European Championships, Olympics, Universiade, cup tournaments. It is at such moments that it becomes clear that the number of highly gambling people in the world is 20-25%.
It will be easier to open a bookmaking business for those who are already familiar with it. Experience is one of the conditions for obtaining a franchise. It is mandatory for the founder of a bookmaker's office.
In such cases, the franchise may be limited to only the right to use the software, the property of the franchisor (a large bookmaker) on a lease basis and receive a line of events with ready-made odds for a fee. In practice, such information partnership services will cost $300-500 per week.
How to open your own business from scratch and draw up a competent business plan taking into account income and expenses - read
Ideally, the betting point should be located in the city center or in a residential area of a large metropolis on the ground floor of a commercial building (shopping center, cinema, club, stadium) or residential multi-storey building. The cost of a bookmaker license for a betting shop with one cashier-operator workplace is now 125 thousand per month.
Therefore, a more rational option would be to purchase a franchise from large bookmakers; this will significantly (50-60%) reduce the start-up investment.
You can learn about the prospects for the development of the bookmaker business in Russia in the following video interview with the chairman of the board of directors of the bookmaker company “Liga Stavok”: