If you’re looking to start a sports betting shop in Nigeria, it’s important to understand the legal requirements and licensing process before you launch.
This guide will define the steps and procedures needed to successfully open a sports betting shop in Nigeria.
You must have asked yourself the following questions before: Where can I learn how to open sports betting shop in Nigeria? Is the betting business profitable in Nigeria? How do I start a betting business in Nigeria? How much will it cost to open a Betting shop? Betting shops make money how? How do you manage a betting shop?
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When Nigerians talk of sports betting, they think in terms of just football (soccer).
But the truth is that other sports, like Basketball, Tennis, Rugby, American Football, etc, are now being bet on.
Ever since Nigeria’s first sports betting company, Nairabet, found its way into the country, a lot more other betting companies have followed suit. Talk about brands like 1Xbet, Bet9ja, BetKing, and so on.
Now if these other worldwide sports betting companies have also arrived in Nigeria for this long, don’t you think the sports betting industry in Nigeria is getting vibrant and lucrative for small-time businessmen/women like you to have a piece of the cake by owning your sports betting shop in the best location on your streets?
Before you jump in on the ‘cake’, I hope you know that sports betting shops are owned and operated by agents who are licensed by sports betting companies to carry out this business on their behalf.
If you didn’t know, well, now you know.
How much does it cost to open a betting shop in Nigeria?
One of the techniques those big sports betting companies use to penetrate the market in Nigeria is through betting shops.
To own a sports betting shop, you as an agent must obtain a franchise permit to operate that shop of yours in the name of the sports betting company you choose, as well as its brand collaterals and software.
What happens usually is that an agent (which is you in this case) takes a fixed percentage of the total amount made from bets for a month.
So, with the high patronage we see everywhere, betting shops as a business in Nigeria is something most entrepreneurs go into, knowing that they are guaranteed of making handsome cash at the end of the month.
Let’s now get to the nitty-gritty of how to open sports betting shop in Nigeria.
How To Start A Betting Shop In Nigeria
To start a betting shop in Nigeria, you will need to look at the following closely:
Check Which Bookies Pay Agents The Most
You need to first determine which betting company you prefer to work with. Here is a list of betting companies in Nigeria you can choose from.
In deciding your choice, you should be looking for a betting company that helps agents with some shop equipment, faster payouts, and a higher commission percentage.
Just make sure that you research properly and read each one’s terms and conditions before going ahead with them.
Getting Betting Shop Franchise
Now that you know the betting company you want, you need to apply for their franchise.
The franchisee is the third-party buyer who purchases the brand rights from the franchisor (the brand owner). The franchisee pays an initial franchise fee to the franchisor for the rights to use their brand in addition to ongoing franchise fees for marketing, royalties, and more.
What this means (if you get the franchise) is that you now have full rights to operate as if you were owned by the betting company.
As for the requirements for franchise applications, they differ from betting company to betting company.
If you check their website, you will often find a tab with the caption “become an agent”. Click on it and you’ll be taken to a page where you can read their terms and conditions. Then, you will be redirected to an application form.
After you submit the application, an account manager will get in touch with you and give you information on what next to do.
Once you meet their requirements, your application will be approved. But if you are rejected, consider applying to another.
Betting Shop Equipment
Before applying for a betting shop franchise, there are some equipment you need to have bought because that will form part of the things the company will see to measure your seriousness.
If you are buying an existing betting shop, you are very likely to find some of this equipment there. Otherwise, you’ll just have to look for betting shop equipment that are up for sale, probably online.
Here are some equipment that you need to start a sports betting shop in Nigeria:
Sports Betting Shop Equipment To Buy
- Computer (Any decent desktop or laptop will do)
- Internet
- Generator
- A TV decoder that broadcasts popular matches
- Television sets for broadcasting live matches and virtual games
Renting A Betting Shop
It’s either you look for an already betting shop for sale or rent one, bottom line is that a shop is an important aspect when starting a betting shop in Nigeria. I mean…it’s in the name!
And don’t forget the role location plays in this business because your shop location is very integral to the success of your bet shop.
In case you didn’t know, the location of your shop is one of the key factors bet companies take into consideration when they come for an inspection to make sure your shop meets their standards.
Do you still need to be told to make sure your shop is strategically located?
How Much Does It Cost To Start A Betting Shop?
Depending on the kind of betting shop you wish to open (big time or small time) and the location, you will need between 500,000 and 750,000, or even more in some cases.
- To start with is the shop rent which could gulp 120k to 250k per annum depending on the location. Try and make sure the shop is spacious so your customers will be comfortable while waiting for their turns.
- Laptops computers (tokunbo): 80k
- Wooden counter to separate your cashier (attendant) from your punters (customers). [about 25k]
- Chairs (for cashiers) and benches for customers. [about 25k]
- A 2.2kva generator. [about 100k]
- Internet Modem. [6k depending on network provider]
Sports betting companies in Nigeria require a sign-up fee or registration fee from potential agents before being given the authorization to operate in their name. Remember when I talked about franchises? This is it.
Bet9ja’s registration fee or sign-up fee is between ₦50,000 to ₦80,000 while Nairabet’s is ₦25,000.
You most likely will be given the following items by the company when you pay their signup fee:
- Thermal receipt printers. New POS-58 or POS-80 units come with roll paper.
- A banner to advertise your business.
- Accounting software on their platform.
Let’s now take a look at how profitable the betting agent business is in Nigeria.
How Much Do Betting Agents Earn In Nigeria?
It is not enough to only know how to open sports betting shop in Nigeria, I’m certain you’d like to know as well how lucrative the betting shop business is in Nigeria.
To tell the truth, betting companies do not pay their agents any form of stipulated regular payment, in terms of wages or salary.
An agent’s deal with the betting company is contract-based, that is, commission-based.
What this means s that how much you earn is fully dependent on your turnover i.e. the total value of bets placed through your shop office.
In other words, some agents rake in as much as 500,000 to 1,000,000 Naira per month (or even more), while others earn as little as 10,000 per month.
All these figures are dependent on several factors. There’s just no fixed amount of money a bet shop agent can make.
Being an agent is more or less a partnership where the betting company allows you to make money using their platform, while both parties share the money via a commissioned-based structure.
The commission-based payment structure of betting companies differs. You’ll have to find out each one’s own from their websites.
If you double your hustle, these commissions could translate to millions of Naira for you.
Apart from the sports games betting commission, there are other structures offered by the betting company like the one for racing games (virtual) betting.
Here, the commissions are structured in the range of 9% per stake (highest commission) to 3% per stake (lowest commission).
There’s simply no limit to how much you can make as a betting shop agent!
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Wrap Up
Before I conclude how to open sports betting shop in Nigeria, there are a few things you need to know. You need to get a cashier (If you can afford to) or just do it yourself.
The role of the cashier is to help receive cash from customers and help them print their bet slips after placing bets.
Also, branding/advertising/marketing is essential. Although the betting company you registered as an agent with will give you banners and other branding materials.
You need all these things to promote your business and attract customers to your betting shop.
Article updated 2 months ago. Content is written and modified by multiple authors.
