Nigerian entrepreneur and founder of NairaBet, Mr Akin Alabi, took to his Twitter page to drop few hints on what entrepreneurs should consider before venturing into the sports betting business.
According to Mr Alabi, potential entrepreneurs in the field should be prepared to pay out as much as 90% to 97% of income to winners.
If you are planning to start a sports betting business, let me give you a small hint of financial flow so you can be prepared.
Out of all the best places, you will be paying out between 90% to 97% as winnings.#Thread
— Oloye Akin Alabi (@akinalabi) April 3, 2019
He went further to explain that when running a sports betting company, one has to bear in mind that the market “stands at an average of 93%”.
What this means is that when sports betting platforms receives N100 million worth of bets, they pay out as much as N97 million to winners.
As the market stands today, it stands at an average of 93%
This means that if you receive bets of N100m, you will be paying out between N90m to N97m
A particular day or week can be very profitable or you can suffer a bad loss.
— Oloye Akin Alabi (@akinalabi) April 3, 2019
Making profits in sports betting business
Mr Alabi added that a particular week can either be very profitable or otherwise. Whichever way, he said that sport betting platforms usually start recording relative profit after about three months to a year. This is because customers increase, making it possible to record profit.
But after a period of like 3 months to a year, you will be sure to profit/keep an average of 5%.
If your volume is good, you will be able to take care of your expenses and still keep good money for yourself.
— Oloye Akin Alabi (@akinalabi) April 3, 2019
Things to avoid as sports betting business owner
The entrepreneur also warned that business owners should very careful with the kind of deals they sign. According to him, no sports betting business owner should ever agree to a deal that requires him/her to be paying on the number of bets. If you do that, you will lose profit, he said.
Let’s say you agree to pay for a service on 10% of total bets. It looks small on the surface. But let’s do some calculations.
You take bets of N100m. This means your fee is N10m. You pay out between N90m to N97m as winnings.
Don’t ever do it.
— Oloye Akin Alabi (@akinalabi) April 3, 2019
Every business is has its unique challenges and is prone to losses and gains. That why it is important to garner enough knowledge, from mentors and career advisers before starting out one.
Believably, Akin Alabi has shed enough light on what to potential entrepreneurs should know about the sports betting business and what to and not do.
You can check his Twitter page for other information he might put off.
