How To Set Up A Betting Shop
Here is exactly what to do: Head to the bet9ja agent application portal at agents.bet9ja.com. Fill the application form correctly. You will be requested to upload an image of your shop so look for a good photographer to take a digital image of your bet9ja shop. After filling every information correctly click the submit button and wait patiently. Try to go for a 12ft by 15ft or larger. The bigger, the better as your customers will be comfortable while they wait their turns. If you decide to use an existing business’ shop, ensure the items on sale are not “handy”. I once had an agent who sold shoes and wanted to combine the business of sports betting.
© Provided by Tuko How to start a betting company in KenyaCan you become rich by betting? Whether a fan or not, it is hard to ignore that sports betting is one of the latest gambling crazes in Kenya. The fact is that just like betting itself, betting companies are making a killing, and entrepreneurs are wondering how to start a betting company so that they can also enjoy the crazy profits.
Also known as a bookmaker, a sportsbook is a place where the gambler can wager on different sports competitions. Simply put, it is an individual or company that accepts bets from individual sports bettors. A bookmaker collects bets from gamblers, then make profits after giving the winning party what they earned.
How to start a betting company in Kenya
The sports betting business is very sensitive, and any small mistake can result in hefty fines or a business permit withdrawal. Here are all the requirements needed to start and operate an online and offline gambling business successfully.
Procedure for starting an online gambling business
The prerequisites needed to start an online sportsbook are:
1. Company registration
Before starting any business venture in Kenya, you need to register the business name. If wondering how to register a betting company in Kenya, you first need to choose an appropriate name, do a name search, and if it is available, reserve it at the office of Registrar of Companies. In this case, you can either opt to register it as a partnership or a limited company.
2.iGaming software
The second thing you need to create a betting site is an effective gambling software from an authorized company. This is the software required to automatically update live matches, completed games, and upcoming competitions. Moreover, the software aids in fixing the odds for the games based on previous performances.
How much does it cost to start a gambling website? Owing to the complexity and technicalities associated with the IGambling software, it is quite expensive to get.
3. Gambling permit
Next on the list is acquiring a gambling licence. One can obtain this documentation from the Betting Control and Licensing Board – Kenya (BCLB). This is the department under the Ministry of Interior and Coordination of National Government charged with the mandate to license, regulate, and control gaming activities in the country.
4. Merchant account
One cannot start a sports betting company without a merchant account. Here, an investor will deposit the large sums of cash needed to pay off winners who predict the right odds for the games.
Initially, investors needed to deposit at least Ksh 20 million into their merchant account, but the new rules dictate that a sum of Ksh 200 million is needed in this account before one can be allowed to operate a gambling website.
5. A dedicated server
Sports betting website development cannot be done without a dedicated server. This is due to the intensity of activities that will be ongoing in the online gaming site. For instance, there are credible web hosting companies like Bluehost, Namecheap, or Godaddy that one can use. This server must not be shared with any other person.
After completing the above steps, one can start and operate their online sports betting company without any problem.
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Source: Depositphotos
How to open a betting shop
Some operational betting companies are taking the franchise route in an attempt to reach more people and earn more revenue. An excellent example of such a company is Betin, a trusted sports betting firm in Kenya. You need the following to become a betting agent.
1. Security deposit
Betin required agents to deposit a sum of money as security deposit with them. Its deposit was set at Ksh 150,000 where one would need to pay Ksh 100,000 immediately and the balance to be paid in five monthly instalments of Ksh 10,000 each.
2. Good location
The betting shop must be at least 50 square metres and be situated on the ground floor of the building. Additionally, the shop’s location must be more than 100 metres away from the nearby church or school. The investor must perform all general renovations of the shop from the wiring to the furniture, among others. The betting company will only provide equipment for the tills.
3. Stable Internet connectivity
How To Run A Betting Shop
In setting up a betting shop, one requires an Internet connection with at least 5 Mbps speeds. This type of bandwidth costs approximately Ksh 3000 per month.
4. Licences
Agents of betting shops need to apply for a general trading licence from the Registrar of Company as it is a business like any other. To add, they must procure a permit from the Music Copyright Society of Kenya.
5. Power back-up
Electricity is a big part of the betting business, and so one must have a back-up generator that automatically switches the power on during a blackout. Confirm if the building hosting the shop has a generator and consider purchasing one if it does not.
6. TVs and streaming service
One will also require TV sets placed in different locations inside the shop. These TVs will steam all the live matches from the various sporting channels. Apart from the TVs, one must have a Dstv decoder and subscribe to the premium package, which costs approximately Ksh 7500 monthly.
7.Operating cash
One also needs some cash float to operate a betting shop. This money will be used to pay off the client’s winnings.
How much do I need to start a betting company in 2020?
Statistics released by the Ministry of Interior in April 2019 depicts that approximately 76% of Kenyan youth are active gamblers. Besides, the majority of these young and energetic citizens have become addicts losing their hard-earned money betting 899 daily.
Therefore, new and stringent laws have been adopted to curb gambling addiction and protect the country’s youth. How much money do you need to start a sportsbook? Now that you know everything required to start and operate a gambling business, whether online or as an agent, you still need to know how much investment one needs.
According to the new proposed laws passed in April 2019, individuals hoping to start an online betting venture must part with a whooping Ksh 500 million. Because of this new legislation, many small-scale investors in the business have had to close up shop.
That is not all, gambling licences are now costing Ksh 100 million under the new proposed rules and regulations. Investors also need to deposit a sum of Ksh 200 million refundable security deposit amount with the Betting Control and Licensing Board (BCLB).
Also, venture capitalists in the online betting industry must deposit another Ksh 200 million as a collateral investment to sustain business activities. The revised gambling laws have hard-hit agents seeking to set up betting shops as they are now required to part with a sum of Ksh 30 million to obtain their licence and security deposits.
The gambling industry is one of the most lucrative industries worldwide, generating millions of dollars annually. Nevertheless, the Kenyan government must protect the consumer from exploitation by locking out many investors so that only a few players can start and operate betting companies successfully. In case you fall within this category, now you know how to start a betting company.
DISCLAIMER: This article is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility!
Betting can be frustrating, especially if you lack the basics of placing a bet and winning. A few months ago, tuko.co.ke shared tips on how to bet in Kenya successfully. First of all, if you are betting on a game, conduct thorough research before placing bets.
You need to be analytical. Bear in mind that any profit matters, and lastly, have and maintain a betting record. Interestingly, you can better your gambling habit by taking note of your losses.
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