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Starting a Sports Betting Company in Nigeria – Business plan

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Sport betting in Nigria
  1. Register Your Sport Betting Company (#5000 NOW, #20000 later)

If you have conducted your research and are convinced that sports betting company is the right business for you to start in Nigeria, then you must visit the nearest corporate affairs commission to register your own sports betting company.

Normally, it would take you less than 2 weeks to register and obtain your certificate of incorporation. With your certificate of incorporation, you are able to open a corporate account for your sports betting company, and you can also apply and get your Tax Payers ID.

  1. Apply and Acquire the Required License (depends on state)

Before you can be permitted to start your own sports betting company in Nigeria, you are required to visit the National Lottery Commissions of Nigeria to apply and obtain a license. The National Lottery Commissions is the body regulating the industry in Nigeria.

  1. Rent Your Office Facility (a room and accessories)

Before you can be issued a license to operate your own sports betting company in Nigeria, you must have a physical address – that is an office where you operate from. Therefore, you must make it a point of duty to secure an office facility where people can easily have access to place their bets, claim their earnings, or lodge their complaints. The truth is that; you can only buy people’s trust if you have a standard betting office in Nigeria. That is why you must rent an office that befits the kind of business you are into.

  1. Open Your Official Website (400$) and (software or script) (5000 Euro)

If you want to start your own sports betting company in Nigeria, you must endeavor to have an official website for your company where people can easily visit and know exactly how your sports betting company operates. Your official website is an important tool in this line of business, because it is part of what you will use to announce the various winners daily, and all the necessary information that you would want to pass across to your customers and the general public.

We can check price of software here (https://www.sb-betting.com/sportsbook/ , https://www.sb-betting.com/ , https://www.betconstruct.com/) a developer would be needed to monitor this.

  1. Create Easy Payment and Betting Platform (Free)

The advent of the internet has really made sports betting easier compared to the era when you would need to visit an outlet before you are able to place your bet. These days, it is easier to place your bet from your computer or from your smart phones.

Hence, what is expected from you as a sport betting company is to create a secured and enabling platform where people can make use of their credits cards to place their bets. It is fact that if your betting platform has been proven not to be secured, you are likely going to lose most of your customers, that is why you must do all it takes to always secure your payment platform.

  1. Franchise or Open Multiples of Outlets in Different Locations (depends on Location)

The numbers of outlets your sports betting company has determines how successful your company can become. Even though it is expensive opening outlets in different part of town, it is very important to do so because majority of those who engage in sports betting in Nigeria prefer to physically visit betting offices to place their bets as against doing it online.

If you know you don’t have the capacity to open the required outlets in various locations, you may want to consider selling your franchise to potential investors. This is one of the means of spreading your brand as a sport betting company.

 

  1. Promote Your Sport Betting Company (depends on Pocket)

If you are conversant with the sports betting industry in Nigeria, you would realize that there are quite a number of sports betting companies in Nigeria- especially in Lagos. So for you to make good success from your sport betting company, you must engage in continuous promotion of your sports betting company.

Part of what you would have to do to promote your sports betting company is to sponsor sport programs on radio and TV station, you can also place adverts on National newspapers, amongst other. Brilla fm is the only sports radio station in Nigeria for now; it should top your list of radio stations to advertise on.

Just like starting any other company in Nigeria, starting a sports betting company in Nigeria comes with its own challenges; it requires dedication and hard work to stay afloat. There you have it, all you would need to do to start your own sports betting company in Nigeria.

 

 

 

 

 

 

Part 2 (Partnering with existing software of bet site due to Finance)

  1. Shop
    The location of your betting shop is one of the most important aspects of the business. If you get your location right, you are most assured of always having customers. High footfall is key, so prioritise your location strategy above all – such as saving on the rent (within reason, of course). Avoid shops such as those on the 4th floor of shopping complexes in quiet parts of town.
    Some franchises even offer guidelines on how and where to secure your new venture. For example, Bet9ja will usually inspect your chosen location before you launch, therefore it might be a good idea to contact them for approval before relinquishing your rent.
    Dan offered some insight into shop sizes and suggested that the shop should be at least 12m x 12m in size. Ideally, he said,  a standard bet shop should be able to contain 100 persons at any given time point.

Estimated rent: ₦15K monthly = ₦180K per annum

  1. Computers + Internet
    You will need Internet-enabled computers to place bets. The number of cashiers you have determines the number of computers you will need. You may start with two cashiers, but it is advisable to have up to four. Desktop computers are more advisable as they are less susceptible to theft. The computer specs can be as basic as 80gb HDD and 2gb Ram. A fairly-used desktop computer should go for about ₦70K.
    Internet costs can potentially drive up running costs of your business if the wrong choice is made, so make a wise decision at this stage. You will need fast internet to run a betting shop, so some options to consider are any of the 4G-LTE internet service providers such as MTN, Etisalat, Spectranet, Smile. These cost estimates are based on the pricing for Spectranet indoor WiFi.
    Estimated cost of four computers:  ₦280K
    Internet (Spectranet): ₦40K
  2. 3. UPS
    Depending on your pocket, you may consider getting a UPS. A 1.57kva UPS currently goes for about 34k.
    UPS cost: ₦34K
  3. Fittings
    This refers to sitting areas for customers, shelf and chairs for cashiers, notice boards etc. I estimate that ₦50K should go a long way in handling these.
    Fittings cost: ₦50K
  4. Thermal printer(s)
    Thermal printers are used in printing bet slips for customers. Some bet franchises offer these as part of their sign-on fees. Thermal printers range ₦27-32K
    Thermal Printers: 4 pieces at ₦32K = ₦128K
  5. Power supply (electricity generating set)
    You will be better of with a generating set of at least 2.2kva, because of the electricity demands involved. A 2.2kva generator currently sells for about ₦85K.
    Generator – ₦85K
  6. TV/Cable subscription
    The number of Tvs you’ll get is dependent on the types of betting events you want to cover. These may be live sports (football, tennis), virtual soccer, dog racing, ‘colour’ etc. You may need to confirm what customers usually play in your area to know which events to offer.

In my vicinity, for example, Dan observed that customers were just as interested in virtual games as they were in live games and matches. Translating this into the venture, it would then be a good idea to set up with two televisions –  one TV for virtual games, and the other for live games. Live football matches tend to draw more customers to your shop. It is also a good idea to consider buying fairly-used flat screens, and these cost between ₦30-50k. Let’s go with ₦40K for the sake of this post.
TV: (40 x 2) = ₦80K
Cable TV subscription and initial setup: ₦30K

  1. Bet Franchise Sign on fees
    As you will be signing under an already existing betting franchise, you will need to register and pay a sign on fee. I got conflicting responses regarding the sign on fees, so I think that these vary and are negotiable. A contact in Akwa Ibom who was about to start his betting shop revealed that he estimated sign-on fees in the region of ₦50k. Dan, on the other hand, had fees of between ₦15-20K. For the sake of this post, let us go with the higher figure of ₦50K.

Cost Summary
Shop                                                            180,000
Computer/internet                              320,000
UPS                                                               34,000
Fittings                                                         50,000
Thermal printers                                   128,000
Generator                                                    84,000
TV                                                                   80,000
Cable                                                              30,000
Sign-on fees                                                50,000
Total                                                       ₦956,000

 

All cost are based on :Lagos state and can be reduce to 500 to 600k

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