Sports Betting App Development: A Complete Guide for Startups & Entrepreneurs

The sports betting industry has been growing tremendously over the past few years. With the rapid technology penetration and increased consumer interest in online sports betting, the demand for sports betting app development is increasing.

According to Vantage Market Research, the global sports betting market recorded $81.03 Billion in 2022. And it is now projected to attain $167.50 Billion by 2030 at a CAGR of 9.50%. (Source)

In the US alone, the sports betting app revenue reached $7.4 Billion in 2022, accounting for 20% of global online sports betting revenues and with a 71% increase on the previous year.

This industry is evolving with increasing sports interest and growing usage of smartphones and mobile apps. Today, people don’t just watch sports and participate in online games.

They now take them as an opportunity to make money and involve more deeply to enjoy the sporting spirit. Whether it is soccer, basketball, cricket, hockey, athletics, horse riding, boxing, or motor racing, every sporting event is now being covered by online betting.

There are many online sports betting apps such as Fanduel, BetMGM, DraftKings, and Bet365 which are already generating business revenues in millions of figures.

So, if you are thinking to enter this industry by launching your own sports betting app, your decision is certainly future-proof.  Data is itself the evidence.

However, when it comes to developing a successful sports betting app it requires a great deal of effort and planning. There are many laws and regulations concerning launching sports betting apps.

Especially if you are a startup or entrepreneur entering first time this industry, you need to know various important things about sports betting app development.

Being a leading sports betting app development company, we have helped many business people launch their own mobile apps for the sports industry. So to help you with this, here in this guide we will explain everything that you need to build and launch a successful sports betting app.

So why wait then? Let’s dive into the game

What is a Sports Betting App?

A sports betting app is a mobile application. It is designed to facilitate the process of betting on sports events. These apps allow users to wager money on various sports events, including but not limited to football, basketball, soccer, baseball, tennis, and more. Sports betting apps provide users with access to a wide range of betting markets, odds, and betting options. And also, enables them to place bets conveniently from their smartphones or tablets.

Types of Sports Betting Apps

Online sports betting is a big industry. There are plenty of sports that accept wagers or online betting. In addition to this, each type of fantasy sports app or sports betting app has a unique set of features. Thus, sports betting apps can be categorized into various types based on their features, target audience, and functionality. Here are some common types of online betting apps along with examples:

1. Traditional Sportsbook Apps

These apps are offered by established bookmakers and sportsbooks. They cover a wide range of sports events and betting markets.

Examples: Bet365, William Hill, Ladbrokes.

2. Daily Fantasy Sports (DFS) Apps

DFS apps allow users to create fantasy sports teams and compete against others for cash prizes. Users draft virtual teams of real players. They can earn points based on their performance in actual games.

Examples: DraftKings, FanDuel, Yahoo Fantasy Sports.

3. Betting Exchange Apps

With betting exchange apps users can bet against each other rather than against the bookmaker. Users can place bets and set their own odds or accept odds set by other users.

Examples: Betfair Exchange, Smarkets, Matchbook.

4. Social Betting Apps

Social betting apps combine social networking features with sports betting. Users can follow friends, share bets, and compete in leaderboards.

Examples: BetUp, Betfect.

5. Live Betting Apps

Live betting apps focus on providing real-time betting opportunities during sports events. Users can place bets on various in-game outcomes as the action unfolds.

Examples: 888sport, Betway, Unibet.

6. Prop Betting Apps

Prop betting (short for proposition betting) apps offer betting on specific events or outcomes within a game. Users can bet on a wide range of propositions such as player statistics, game events, or even non-sporting events.

Examples: Bovada, BetOnline, MyBookie.

7. Esports Betting Apps

Esports betting apps cater to the growing market of betting on competitive video gaming events. Users can bet on matches and tournaments across various popular esports titles.

Examples: Unikrn, Betway Esports.

Why the Demand for Sports Betting Apps is on the Rise?

The popularity of sports betting apps is increasing due to significant growth in the sports betting market. As mobile apps and digital transformation penetrate the sports industry, people are taking more interest in sports games than ever across the globe. According to a study by Lund University in Sweden, consumer demand in sports wagering platforms enhanced due to lockdown restrictions in sporting events during COVID-19.

Take a look at the recent market statistics about the sports betting market. And you will realize why sports betting software development is becoming a top investment choice for startups and entrepreneurs.

• Americans bet $23 Billion on sports during the third quarter, with 32.7% higher than a year ago. And it is estimated to hit a staggering $100 Billion in the near time.  (Source: American Gaming Association)
• In the USA Sports betting apps generated $7.4 Billion in revenue in 2022 and £2.36 billion in revenue in UK. (Source: Business of Apps)
• In the online sports betting market, the total number of users is expected to surmount to 180.8m users by 2029. (Source: Statista)
• The global average revenue per user in online sports betting is US$0.33k. (Source: Statista)

So these market statistics and data clearly show why developing sports betting apps or fantasy sports apps is a worthy decision for business people. But what factors are contributing to the growth of this industry? Here are the reasons:

• High mobile app penetration
• Legal approval for sports betting
• Growing popularity of online sports betting
• 24×7 operations
• Live betting opportunity
• Real-time sports statistics
• Innovation in online sports gaming

Benefits of Sports Betting App Development

Sports betting app development offers various benefits for both users and businesses. There was a time when betting was limited to physical sports and games. Many countries even restricted betting for some reason.

 

However, with the increased digitization and sports enthusiasm, online sports betting is enhancing a lot. Many countries in the world support online gambling and betting. Today, businesses look to build betting or fantasy sports apps like Fanduel, BetMGM, and Draftkings to generate high business profits.

This is due to the benefits that sports betting apps offer. These benefits contribute to the growing popularity and success of betting apps in the gambling industry.

1. Convenience

Perhaps the most significant benefit of sports betting software development is the convenience it offers to users. With a mobile app, bettors can place wagers from anywhere, at any time, without the need to visit a physical betting location. This convenience enhances the overall betting experience and attracts users who value flexibility and ease of access.

2. Accessibility

Sports betting apps make betting accessible to a wider audience. Users can access the online app from their smartphones or tablets, reaching individuals who may not have easy access to traditional betting establishments. Such increased accessibility helps expand the potential user base for betting operators and contributes to revenue growth.

3. Variety of Betting Options

These apps typically offer a wide range of betting options. For instance, traditional sports betting, live betting, daily fantasy sports, and more. With such a diverse variety it caters to the different preferences of bettors and enhances the overall user experience. Users can choose from a multitude of sports events, betting markets, and wager types. And thus ensure there’s something for everyone.

4. Real-Time Information

These apps provide users with access to real-time information, including live scores, odds updates, and match statistics. It helps bettors and other users make informed decisions and adjust their bets accordingly. Using this data, betting businesses create better strategies to offer a more engaging and dynamic online betting experience.

5. Enhanced User Experience

Through intuitive design, seamless navigation, and interactive features, sports betting apps deliver an enhanced user experience compared to traditional betting methods. Conventional betting mostly involves physical efforts which incur a cost burden on both.

However, online betting apps come with exciting features such as live streaming, cash-out options, and in-play betting. This further enriches the user experience and keeps bettors engaged on a long-term scale.

6. Promotional Opportunities

For betting operators, sports betting mobile apps offer numerous promotional opportunities to attract and retain users. Sports betting app owners can offer bonuses, free bets, loyalty programs, and other incentives to incentivize betting activity. Through this increased engagement, they can drive better user acquisition and retention.

7. Revenue Generation

Sports betting software development brings lucrative revenue opportunities for businesses operating in the industry. There are many monetization strategies such as subscription models, in-app advertisements, affiliate partnerships, and premium features for monetizing sports betting apps. With these revenue generation models, betting operators can produce significant revenue streams from their apps.

Sports Betting App Development Process: Steps to Develop a Sports Betting App

The sports betting app development process requires thorough research and in-depth planning. From conceptualization to design and development to launch, every step plays a critical role in launching a successful sports betting mobile app.

Since we are an expert mobile app development company in fantasy sports app development company we know what process and strategies it takes to build a revenue-generating app. Below we have shared key steps to develop a sports betting app.

Step 1: Get a Gambling License

The gambling and betting market is flourishing across the globe. However, not all countries have permitted betting businesses. In the USA itself, some states yet haven’t allowed this business, while some states allow license-based betting businesses.

Therefore, first, you should check whether your target country where you are to launch your sports betting app permits online gambling and betting on sports. If yes, then get an appropriate license before developing your sports betting app. For, this there are certain regulatory bodies that provide licenses for sports betting.

USA

• New Jersey Division of Gaming Enforcement
• Nevada Gaming Control Board
• Pennsylvania Gaming Control Board

UK

• UK Gambling Commission

Australia

• Australian Communications and Media Authority (ACMA)

Step 2: Define Your App Concept

Sports betting is a big industry. It has a variety of betting options to offer. Users can bet on a plethora of sports events and gambling activities. Therefore, you should do market research and determine what type of betting service you want to offer.

Since there are many sports you also have to decide whether your sports betting app would be specific to a single sport. Or it will cover multiple sports to allow users to bet simultaneously. Hence, you should research the market trends and analyze insights to make a well-informed decision.

Step 3: Find An Expert Sports Betting App Development Company

To build a sports betting app requires research and well-defined planning. You will have to integrate APIs and other technologies to enable smooth functionality for online betting software and apps. Therefore, you will need to find a reliable sports betting software development company that specializes in developing apps for sports betting. They have qualified mobile app developers for sports gambling software and apps for betting businesses.

Step 4: Choose the Key Features of Sports Betting App

Online betting software comes with multiple services. It doesn’t just let users bet on sports events. The app provides other exciting features to enjoy online sports events as well. However, the selection of features depends on various factors like app type, betting model, device platforms, etc.

So, when you are developing a sports betting app, choose the features considering the mentioned factors. Below we have shared the common and popular features of sports betting apps that you can incorporate into your app.

User-side Features of Sports Betting Apps

1. User Registration
2. Real-Time Betting Information
3. Bet Placement and Management
4. Live Streaming
5. In-Play Betting
6. Favorites and Watchlists
7. Push Notifications
8. Betting History and Tracking
9. Cash-Out Feature
10. Secure Payment gateways
11. Social Sharing Features

Admin Side Features of Sports Betting Apps

1. User Management:
2. Content Management:
3. Risk Management
4. Financial Management
5. Compliance and Regulation
6. Promotions and Bonuses
7. Security and Access Control:
8. Reporting and Analytics
9. Customer Support and Communication

Step 5: Select the Tech Stack for Sports Betting App Development

For Sports betting app development, you will need some particular technologies, tools, and frameworks. This tech stack will allow your sports betting app development team to create all the required features and functionalities.

In addition to this, you will also have to integrate APIs and third-party services to enable some premium services like getting updates about the scores, market betting rates, and the latest news. Hence. you should discuss with your company to appropriately select the tech stack and integrations.

Front end Technologies

• Native SDKs: Android Studio/iOS SDK
• Cross-platform frameworks: React Native, Flutter

Back-end Technologies

• Node.js
• MongoDB
• SQL

Integrations

• Payment gateway integration: Stripe, Paypal
• Cryptocurrency integration: Bitcoin, Ethereum
• Sports data provides: Sportsradar, Stats Perform

Regulatory Compliance

• GDPR
• KYC

Step 6: Develop and Launch

Once you are done with all your selections, you can start working on developing your sports betting app. Remember, the entire process of sports betting app development will be managed by your development partner. Hence, you have to constantly stay updated and communicate with them to monitor the progress of the project. In the end. when your app has passed all quality and security tests, you can launch your app on your preferred app stores.

How Much does it Cost to Develop a Sports Betting App?

On average, the cost of fantasy sports betting app development can go between $20,000-$50,000. However, the exact value may vary depending on several associated factors such as the number of features, betting model, third-party integrations, and so on. Thus, to get an accurate cost estimation, you should consult a dedicated sports betting app development company. They will give you price quotation based on your specific project requirements.

What are the Monetization Strategies for Sports Betting Apps?

Sports betting apps offer multiple methods for generating revenue. Depending on your app type, betting model, and business goals, you can incorporate any of the app monetization strategies for your sports betting or other fantasy sports apps.

1. Commission on Bets

Sports betting apps typically earn revenue by taking a percentage of the wagers placed by users, known as the “vig” or “juice.” The app collects a commission on winning bets or deducts a fee from the total amount wagered, regardless of the outcome of the bet.

2. Subscription Models

This app offers premium subscription plans with exclusive features, benefits, or content for users willing to pay a recurring fee. Subscription plans may include access to advanced betting analytics, expert picks, ad-free experience, or premium customer support.

3. In-App Advertisements

Display advertisements within the app from third-party advertisers, such as sportsbooks, casinos, or other gaming platforms. You can monetize through various ad formats, including banner ads, interstitial ads, video ads, and sponsored content.

4. Affiliate Marketing Partnerships

You can partner with other mobile sportsbook software, apps, or affiliate networks to promote their products or services to app users. It allows you to earn commissions or referral fees for driving traffic, registrations, or deposits to partner sites through affiliate links or tracking codes. You can also negotiate revenue-sharing agreements based on the volume or value of referrals generated by the app.

5. In-App Purchases

In this model, your app offers virtual goods, credits, or tokens for purchase within the app that can be used for betting or unlocking additional features. For example, virtual currency for placing bets, unlocking premium betting tips, or participating in exclusive tournaments or contests.

6. Sponsorships and Partnerships

This model allows you to partner with sports leagues, teams, athletes, or events to promote their brand or products through sponsorship deals. Here, you monetize through brand visibility, product placement, logo placements, or sponsored content within the app. Also, by collaborating with brands for co-branded promotions, giveaways, or special events to drive engagement and revenue.

What are the Challenges During Sports Betting App Development?

Sports betting app development can present several challenges, ranging from technical complexities to regulatory compliance issues. Here are some common challenges that startups and entrepreneurs may encounter during the development process:

Regulatory Compliance

Not all countries permit online betting or gambling. You have to adhere to legal requirements and regulatory frameworks governing sports betting in different jurisdictions.  You need to ensure your sports gambling software is compliant with age restrictions, responsible gambling measures, data protection laws, and other regulatory requirements.

Geolocation Restrictions

Your sports betting apps should have accurate geolocation technology to restrict access to the app based on the user’s location, especially in regions with strict gambling laws. Your developers to set measures to overcome  VPNs and other methods users may use to bypass geolocation restrictions. This requires robust security measures and constant monitoring. Hence, it could be a challenging and complex task.

Data Security and Privacy

Protecting user data and ensuring privacy is paramount in sports betting app development. Your app will deal with sensitive financial and personal information. Thus, you need to implement secure authentication methods and data protection protocols to safeguard user data from unauthorized access or breaches.

Real-Time Data Integration

Integrating real-time data feeds, odds updates, and live scores from multiple sources into the app requires high-end integration. Your app will need robust APIs, data synchronization mechanisms, and error-handling strategies. It will be challenging to ensure the accuracy, reliability, and consistency of real-time data updates while minimizing latency and downtime.

Payment Processing

As your app will be constantly processing payments. So you have to integrate secure and reliable payment gateways for deposits, withdrawals, and transactions within the app. Make sure your app is compliant with financial regulations, PCI-DSS standards, and industry best practices.

Market Competition

The sports betting industry is highly competitive. There are already many established betting operators. And the number of new sports betting providers is also increasing. As a result, differentiating your app from competitors might be a great challenge. Your app has to offer some unique features and provide value-added services to attract and retain users in a crowded market for long-term success.

Concluding Thoughts

Sports betting industry is flourishing with increasing technology penetration and sports enthusiasm. Modern users are highly interested in participating in online games and sports events through betting. Therefore, the popularity of sports betting apps is likely to reach a new high in the near time.

For startups and entrepreneurs, this certainly offers a promising opportunity. Since sports betting requires careful consideration and compliance, you will need assistance from a professional mobile app development company that works in sports betting app development services. However, the above guide gives you all the required information to help you build a successful sports betting app.