This article will provide information on the requirements on how to start a betting shop in Nigeria and also provide answers to questions regarding betting business in Nigeria.
- Learn the Skills in Betting
You need to have full knowledge of using simple computer software programmes and how to cope with the business.
- Get the Certificates And Licensing for Betting Shop In Nigeria
- To begin in the sports betting business, you will need to sign up for a franchise with a betting company
- This will allow you to use the company software, name, logo, and reputation which will help in reducing your risks as a newcomer
- Most betting companies will require you fill out an online form beforehand
- Each betting company comes with its own unique guidelines commission rates
- Finance needed for Betting Shop In Nigeria
You will need between 250,000 to 400,000 to set up this business, depending on your location.
- Tools / Equipment / Machinery Needed for Betting Shop In Nigeria
- The shop: 100k to 150k per annum is good enough for a shop depending on the location. Try to go for a 12ft by 15ft or larger shop
- Laptops or Desktop computers: A 10ft x 6ft x 1ft counter made of wood. This helps to separate your cashiers (attendants) from your punters (customers)
- Chairs (for cashiers) and benches for customers
- 2.2kva generator
- Internet Modem
You will be given the following items by the company if you pay their signup fee of about 50k to 500k:
- Thermal receipt printers. New POS-58 or POS-80 units come with a roll paper
- A banner to advertise your business
- An accounting software on their platform
Choose a Good Location for Betting Shop In Nigeria
Your shop should be in a densely populated area in a mix of 70 residential/30 commercials is just fine.
Technology Needed for Betting Shop In Nigeria
It is recommended that in choosing an internet modem, you go with any of the LTE providers as faster speed equals faster money making. The likes of Spectranet, Smile, and Swift will serve well in areas where they have coverage. But where you do not fall within any of these areas, use the 3.5G GSM providers.
Startup/Launch Tips for Betting Shop In Nigeria
As a cautionary measure, make sure you have a secondary source of income to fund the day to day expenses of the business prior to the break-even month.
In managing a Sports betting shop, try as much as possible to enforce that your cashiers use the internet strictly for business and nothing else. If possible, work with the service providers to restrict access to all websites apart from a few. You may start with two cashiers, but it is advisable to have up to four.
To boost patronage, you may need to confirm what customers usually play in your area to know which events to offer. Live football games also tend to draw more customers to your shop. Ensure your shop is situated in an area where there is adequate power supply as you would spend less on generator and vice versa. Also, most bet shops go for the monthly remuneration. However, you can suggest using a salary + commission basis. This is good as it can increase staff motivation.
Conservatively, you will need between 250,000 to 400,000 to set up, depending on your location.
You have to register it as a limited liability company and the minimum share capital for the business is 5 million. So, it is imperative to know that starting a sports betting business is capital intensive.
Sports betting is an extremely profitable business in Nigeria. Roughly 60 million Nigerians between the ages of 18 and 40 are involved in active sports betting. On average, these punters spend around 3,000 Naira every day on bets.
Application Fee: N2,000,000 (Two Million Naira). Permit Fee : N100,000,000 (One Hundred Million Naira).