Sports betting and casino gaming make a strong pair, and many operators run both under one brand and one wallet. Starting a sportsbook from nothing, though, means working through legal, financial and technical questions all at once. This guide covers the business side of the decision: the market, the budget, licensing, what bettors expect and how ready-made software shortens the road to launch.
A market that keeps growing
Online sports betting is one of the largest verticals in iGaming. Mordor Intelligence estimated the online sports betting market at about $48 billion in 2024 and forecast $83.5 billion by 2029, an average annual growth rate of 11.65%. Statista's market outlook projects that online sports betting will have more than 181 million users worldwide by 2028.
Betting on contests is as old as sport itself. What has changed is access: bettors can now follow and back their favourite events from anywhere, with live in-play markets and interactive features that did not exist a generation ago.
How a sportsbook makes money
A bookmaker does not need to predict results correctly to be profitable. It builds a margin into its prices: the odds on every outcome of an event are set slightly below their fair value, so the implied probabilities add up to more than 100%. The difference, often called the overround, is the bookmaker's built-in edge.
Gross gaming revenue is what remains of total stakes after winning bets have been paid. Over thousands of events the margin produces a steady return, but individual results can still swing heavily against the book, which is why pricing, limits and risk management sit at the heart of the business. Bonuses, payment fees, data costs and taxes all come out of that margin, so every one of them needs to be planned.
Build or buy?
Every new bookmaker faces the same first decision: develop a platform in-house or license a ready-made solution from a provider. For most new entrants, buying wins on three counts:
- Cost: no in-house development team to hire and maintain, and no separate negotiations with every payment system and data provider.
- Speed: building core betting software yourself takes a year or more, while a ready-made, integrated platform can go live in weeks.
- Reliability: you get tested software together with the specialists, technology and track record behind it.
Our sportsbook software is designed to go live in 1–2 weeks.
Budgeting for launch
The investment covers far more than software. Plan for:
- platform licensing or development, plus ongoing maintenance
- a gambling license and the compliance work around it
- data feeds and odds
- payment processing
- marketing and player acquisition
- a reserve fund for paying out winning bets
The last item is easy to underestimate. A bookmaker must always be able to pay, even after a run of results that goes the bettors' way, so keep a cash reserve and make sure funds move smoothly through your payment set-up. Sensible bet limits in the early months also help you learn your audience while protecting the balance sheet.
Licensing: your ticket to the market
A bookmaking license is the entry ticket to regulated sports betting. Its cost depends on the jurisdiction, the size of the market, tax rules and security requirements, and the range is wide. Offshore regulators sit at the affordable end: a Tobique license, for example, totals €43,000 in fees, and Curaçao is known for its comparatively low costs. EU-facing options such as Malta cost more, with a €25,000 annual fee for B2C operators and a 5% gaming tax, while each US state sets its own fees and tax rates.
Because the cost and complexity are high, some newcomers start by operating under an established partner's license and brand framework before applying for their own, an approach similar to a white label launch.
Regulation is getting stricter
Across regulated markets, rules have tightened as governments pay closer attention to problem gambling. A few examples of the direction of travel:
- In the Netherlands, the Kansspelautoriteit (Netherlands Gambling Authority) regularly issues guidance on responsible gambling.
- In Ontario, the Alcohol and Gaming Commission of Ontario (AGCO) restricts the public advertising of bonuses, free spins and other inducements.
- In the United Kingdom, the Gambling Commission keeps up its focus on preventing money laundering and protecting vulnerable customers.
- In Brazil, Law 14,790 of December 2023 set the framework for fixed-odds betting, and the regulated market opened on 1 January 2025. See our Brazil iGaming guide.
- In the United States, sports betting is legal in many states but not all, and each state writes its own rules. Our US gambling overview explains the landscape.
Where online betting is legal and well regulated, the market and its innovation flourish; bans and heavy restrictions tend to push players towards unregulated sites and raise the risk of fraud. Either way, know the law in every market you target as well as in the jurisdiction that licenses you.
What bettors value most
- Live betting and depth. Offering only the headline events is no longer enough. Bettors want more sports, more leagues, player props and alternative lines, and they want them in play.
- A clean interface. Log in, find the market, bet in one tap. Clear navigation is non-negotiable.
- Reliability at peak times. Few things frustrate a bettor more than being locked out of an account minutes before kick-off. A robust back office and infrastructure that holds up under peak load are essential.
What a ready-made platform should give you
- Back-office tools to customise your product and set it apart from competitors.
- Promotion management for bonus campaigns that attract new bettors and reactivate existing ones.
- Self-service risk management, from player profiling and fraud detection to risk parameter settings, so you can keep the book balanced and avoid unexpected losses.
- Flexible limits and odds, so you can raise limits and sharpen prices around major tournaments and finals.
- Event management, including scheduling and setting the time windows for accepting bets.
Our sportsbook offers 240,000+ live events a month across more than 40 sports and 2,000+ betting markets, with AI-driven risk management and margin control by sport, tournament and player segment.
Three launch priorities
- Software. Custom development needs serious investment, so customising an existing sportsbook platform is usually more efficient. Running online-only also keeps costs well below those of a retail betting shop, with no premises, counter staff or equipment to pay for.
- Payments. Integrate fast, convenient deposit and withdrawal methods before launch, including e-wallets, cryptocurrencies and direct bank transfers.
- Odds and statistics. Bookmakers set odds with their own traders and analysts or buy them from specialist data suppliers. Keeping margins competitive helps a new brand win bettors from established rivals.
Live betting remains an opening for newcomers: not every bookmaker offers deep in-play coverage, so a strong live product can help a new brand stand out.
Questions to ask a sportsbook provider
- How quickly can the platform go live, and what does the launch include?
- Which sports, leagues and live events are covered, and where does the data come from?
- How much control will you have over odds, margins and limits?
- Which risk management and fraud tools are built in?
- Which payment methods and currencies are supported in your target markets?
- Can the sportsbook share one account and wallet with a casino?
- What support and service levels come with the contract?
Clear answers to these questions make it much easier to compare offers like for like.
Ready to launch?
Successful sportsbooks combine reliable software, solid risk management, healthy reserves and marketing that attracts and keeps the right bettors. If you are planning a launch, talk to our team about a sportsbook that fits your markets.
Written and reviewed by the iGaming Software Solutions Editorial Team.
