Sports betting in Nigeria is a lucrative business to venture into as it rakes billions of naira monthly. The Sports Betting and Gaming industry in Nigeria is one of the new gold mines, yet not fully tapped. So there’s a space for you and any other investors thinking of setting sports betting business.
If you are ready to venture into this business, below is a full guide on how to start sports betting business in Nigeria.
Making money generally requires money. Be rest assured that you will need a huge amount of money in setting this business up.
Steps in Setting Up Your Sports Betting Business in Nigeria
Registration is important for any business irrespective of the industry ventured into. To start a sports betting company in Nigeria, you need to register your business legally.
Go to the nearest Corporate Affairs Commission(CAC) office in your state, to register your company’s name. The Cost of CAC Registration is affordable and it should take 2 or more weeks to get approved. This will enable you to create a corporate bank account for your business and also Apply For Tax Identification Number(TIN).
This is another step in setting up a business of sports betting in Nigeria. Like every other industry, sports betting in Nigeria required licensing and is regulated by somebodies. The National lottery commission(NLC) is responsible for licensing all companies involved in sports betting in Nigeria.
If you are in Lagos State, it’s also a must to get another license from the Lagos State lotteries Board.
For these 2 steps alone, you will need more than 5 million nairas to complete both registration and licensing.
But if you don’t have such an amount, the best thing is to Set Up a Sports Betting Shop in Nigeria and register under another sports betting company in Nigeria. This is known as a franchise. By registering under a sports betting company, there will be no need for a license again. You also have the opportunity to use the company’s logo, reputation, name, and software.
There are many sport betting companies in Nigeria you can register under like Betnaija, Nairabet, Surebet, Supabet, and many others. Even though you will need to pay a franchise fee for registration. You will also be given a commission rate depending on your sales and the company you register with.
3. Renting an Office Space
Before your company can be approved and issued a license, you must provide a physical address of your office for the regulating bodies.
The office must be up to standard and large to accommodate at least 100 people. You should also consider the location of the office before renting any space. It should be close to where your target audience is.
For example, maybe near a football field or arena or even in front of a busy road. The physical office is necessary for punters(people placing a bet) to place bets, lodge complaints, and claim their money.
4. Official Website
A Website is a necessary tool for this business. Sports betting in Nigeria doesn’t have to be placed in a physical location. With the current level of technology, there should be a website that introduces your business and where punters can stake their bet.
When creating an official website for your business, ensure that it is compatible with mobile phones as that is what will be used mostly. You can also make use of attractive and eye-catching designs on your website.
5. Payment Gateways
This is also important in setting up the business of sports betting in Nigeria. Without a payment gateway, there is no way for a bet to be placed.
When creating your payment gateway, ensure to make it safe and secure. Also, provide multiple payment options for punters. You can discuss this with your website designer.
6. Franchise Outlets
One of the strategies used by companies involved in sports betting in Nigeria is the numerous outlets.
You need to create many outlets in different areas and cities to ensure profitability. If you don’t have the money to open an extra outlet yet, you can be strategic by ensuring you get your physical location right.
Equipment like computers, UPS, fittings(chairs, desk, and Notice Board), Printers, and TV sets are what you will need to buy for each franchise outlet.
This is the last but the most important. One of the mistakes most entrepreneurs make is not promoting their business after spending fortunes in establishing it.
You must set aside some money to promote your business. You can do sponsored advertisements on social media, sponsor programs on TV and radio, create fliers and Billboards to create awareness.
Sports Betting in Nigeria is a highly profitable business with many opportunities. With good knowledge, skills, and capital, it will definitely yield good returns.