A sporting chance for online betting to prosper

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(Free-Press-Release.com) December 5, 2011 -- There is a common misconception by the general public that online betting operators focusing on sports betting is a very simple and profitable enterprise. There is nothing further from the truth. In fact, I would argue that it is very difficult for bookmakers to make any money from sports; especially in the UK. There are a number of reasons for this to the case.

Firstly, sports betting online has always been a business of low margin; due to the mere fact that online punters are more informed, and have the opportunity to use a a vast array of bookmakers to make their bets. Secondly, when we look at the sports that usually attract the majority of online betting by punters, it is in the main Horse Racing and Football. Punters have become quite adept at placing bets that provide the best value and return on their stake; this is especially true with regards to UK online betting punters. This fact has been exsacabated with the presence of Betfair and Odds Comparison sites.

In addition, costs of entry into the Online Betting space have become huge. Gone are the good old days when anyone could make a deal with a technology company, build a platform, offer a few free bets; and gradually use profits to build the site up with more products and services. Nowadays, one needs a six figure budget, just to get the business off the ground - not to mention early operating costs and praying that the sporting results go your way. Then a huge SEO and Marketing budget, to ensure adequate ranking and flow of traffic.

With all of this to consider, there are a few sports betting operators that are getting it right and staying one step ahead of the crowd. In my opinion, there are few essentials to ensure the best chance of success. If one is to accept margin is going to be small, then traffic and in turn, active players are key. Player numbers are achievable, with the right SEO and link building campaigns; good range of markets, outstanding promotions (to ensure sign up and maximum player life cycle) and excellent customer service. I would argue that in a world where operators have more or less the same products and services; customer services is the one factor that can make the brand superior to the rest.

Finally, free bets can bring the players in - and is quite the norm today. Improving margin is the way to go, and this can be done with promoting specific markets in specific countries and/or regions. For example, ‘betting in play’ markets (which works best in football, cricket, and tennis) is great way of of increasing profit margin. With regards to targeting specific countries/regions, Italy has huge propensity to gamble of football, Italian punters love placing huge accumulators, which invariably lose; therefore high margin is achieved (sometimes, up to 30%). So you see, like any successful enterprise, online gaming operators need determination, foresight, ingenuity, and luck to ensure they last the distance; and the good ones do make it look easy!

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