Developing a Sports Betting App like BetMGM – Cost and Features

People today are always looking for new ways to connect with their passions and enjoy exciting experiences. For sports fans, the thrill of watching games gets even better with the chance to join in on the action through betting. But traditional betting can be a hassle and take up a lot of time. That’s where sports betting apps like BetMGM come in. These applications can offer a simple and convenient way for everyday fans to place bets, follow their wagers, and possibly win big. Whether you’re new to betting or a seasoned pro, sports betting apps provide a personalized and fun experience tailored to your preferences.

The sports betting app market can easily reach US$ 91,940.9 million in 2023, showing just how many people are using these apps to bet on their favorite games. This creates a great opportunity for businesses to jump into this fast-growing market!

For these reasons, many exciting new sports betting apps are popping up in the US market. In this post, we’ll show you how to create your own amazing sports betting app like BetMGM. We’ll guide you through designing a user-friendly interface and adding standout features. Let’s get started!

Key Market Takeaways for Sport Betting Apps

According to PolarisMarketResearch, the global sports betting market was valued at USD 70.23 billion in 2021, driven by technological advancements and changing consumer behaviors. The increasing use of smartphones and mobile apps has revolutionized the betting industry, enabling users to place bets conveniently from any location.

Source: PolarisMarketResearch

Smartphones and mobile apps have transformed the betting landscape, allowing users to place bets easily from any location. The addition of in-play betting features has further heightened user engagement by allowing real-time betting during live events, enhancing the overall betting experience. Partnerships and technological advancements are also significant contributors to the growth of sports betting apps. Companies like OddsMatrix provide essential data and infrastructure to sportsbooks, enabling real-time odds and advanced analytics. 

Increased legalization of sports betting across the USA has opened new markets for platforms like DraftKings and FanDuel. Since 2018, over 25 states have legalized sports betting, providing a great range of opportunities for these platforms to expand their services. With the addition of diverse betting options and tailored user experiences, sports betting apps are capitalizing on the growing demand from an expanding audience.

What is the Business Model of BetMGM?

BetMGM, a sports betting app, operates under a multifaceted business model that leverages its joint ownership by Entain plc and MGM Resorts International. This model focuses on both online sports betting and iGaming, enabling the company to capture a significant share of the growing North American gambling market. Below is a detailed exploration of BetMGM’s business model, 

Revenue Streams

BetMGM generates revenue primarily through two channels:

• Sports Betting: This includes both online and retail sports wagering.
• iGaming: The platform offers a variety of casino games, including slots and table games.

In fiscal year 2023, BetMGM reported a net revenue of $1.96 billion, reflecting a 36% year-over-year increase from approximately $1.44 billion in 2022. This growth aligns with the company’s guidance range of $1.8 billion to $2.0 billion for the year.

Market Presence

• Geographical Reach: BetMGM operates in 28 markets across North America, accessing nearly 49% of the adult population in these areas.
• Market Share: The company holds about 14% of the U.S. sports betting and iGaming market and has achieved a 22% market share in Ontario, Canada.
• New Markets: In 2023, BetMGM expanded into four new markets: Ohio, Massachusetts, Puerto Rico, and Kentucky.

Financial Performance

• EBITDA Performance: BetMGM achieved positive EBITDA in the second half of 2023 after an expected loss of approximately $67 million for the entire fiscal year. The company aims for an EBITDA target of $500 million by 2026, indicating a robust growth trajectory despite initial losses.
• Growth Metrics: Key performance indicators such as average monthly active users and net gaming revenue per active player have shown improvement. For instance, digital sports revenue per player increased by 65% for players acquired in 2021 or earlier.

Are Sports Betting Apps Profitable?

The profitability of sports betting apps is increasingly evident as the industry continues to expand rapidly. With a significant rise in user engagement and technological advancements, these platforms are generating substantial revenue and demonstrating strong customer lifetime value.

Customer Lifetime Value

The average revenue per user in the online sports betting market is approximately $135.40, with some leading apps like DraftKings reporting ARPU figures as high as $1,200 annually. This stark difference highlights how effective marketing and user engagement strategies can significantly enhance profitability. For instance, if a user remains active for an average of 24 months, the CLV can be calculated as:

CLV=ARPU×Average Lifespan

Using an ARPU of $500, the CLV would be $12,000, emphasizing the importance of retaining users and maximizing their spending over time.

In the United States alone, sports betting apps generated $7.4 billion in revenue in 2022, marking a remarkable 71% increase from the previous year. This growth trajectory indicates a robust demand for online betting platforms, driven by increased mobile penetration and favorable regulatory changes.

Examples of Successful Sports Betting Apps

Several prominent sports betting apps exemplify the industry’s potential:

• FanDuel: As one of the most popular platforms in the U.S., FanDuel has leveraged aggressive marketing strategies to attract users while maintaining a relatively low CAC of about $68.
• DraftKings: Known for its diverse offerings and high user engagement, DraftKings boasts an ARPU that significantly contributes to its profitability.
• Bet365: This app has established a strong market presence through excellent user experience and retention strategies.

Key Features of a Sports Betting App like BetMGM

These days, sports betting apps must offer a comprehensive range of features to attract and retain users. These features play a crucial role in driving business growth and customer satisfaction.

1. Wide Range of Sports

A sports betting app should provide a diverse selection of sports to cater to the unique taste of various users. By offering a nice range of options, businesses can attract a pretty big customer base and increase engagement.

2. In-Play Betting

The ability to place bets on live games adds excitement and dynamism to the sports betting experience. This feature allows users to react to real-time events and potentially increase their winnings.

3. Live Streaming

Providing live streaming of selected games enhances the user experience and encourages more active engagement. By offering this feature, businesses can differentiate themselves from competitors and create a more immersive platform.

4. Parlay Betting

Parlay betting enables users to merge several bets into one wager, increasing the potential for larger payouts. This option often attracts users looking for enhanced excitement and the opportunity to achieve significant winnings.

5. Prop Bets

Prop bets offer users the opportunity to bet on specific outcomes within a game, beyond the traditional win/loss bets. This feature can attract users looking for more specialized betting options and increase engagement.

Features That Can Enhance a Sports Betting App like BetMGM

Incorporating innovative features can significantly enhance the user experience, drive customer engagement, and ultimately boost business growth.

1. In-Play Live Streaming with Real-Time Odds

Providing live streaming of games with real-time updates on odds allows users to make informed decisions and potentially capitalize on changing market conditions.

2. Predictive Analytics and Machine Learning

Utilizing predictive analytics and ML algorithms can help identify potential betting opportunities and provide users with valuable insights.

3. Virtual Reality Betting

Creating immersive VR experiences can transport users to the heart of the action, enhancing the overall betting experience.

4. Integration with Fantasy Sports Platforms

Combining sports betting with fantasy sports can create a more engaging and comprehensive platform for users.

5. Personalized Betting Alerts

Offering personalized betting alerts based on user preferences can keep users informed of relevant events and potential opportunities.

6. Integration with Social Media Platforms

Allowing app users to share their betting experiences and interact with other users on social media can foster a sense of community.

7. Integration with Biometric Authentication

Incorporating biometric authentication methods, such as fingerprint scanning or facial recognition, can significantly improve security while offering users a more seamless login experience. 

How to Create a System for Online Sports Betting?

Creating a system for online sports betting involves several key components that enhance the betting experience and potentially increase profitability.

A betting system is a structured strategy designed to optimize betting outcomes. Popular systems include the Martingale, where you double your stake after a loss to recover previous losses, and the Fibonacci system, which uses a sequence to determine stake amounts based on previous bets.

Types of Bets

Familiarize yourself with various bet types:

• Single Bets: Simple wagers on one outcome.
• Parlay Bets: Combine multiple bets into one; all must win.
• System Bets: Allow for partial wins even if not all selections are correct, such as Trixie (three selections) or Yankee (four selections).

Odds and Payouts

Understanding how odds work is crucial. Odds can be fractional, decimal, or moneyline, each representing potential payouts differently. For example, decimal odds of 2.00 mean you double your stake if you win. Implement strategies for managing your bankroll effectively. The Kelly Criterion helps determine optimal bet sizes based on your bankroll and perceived odds.

Development Steps for a Sports Betting App like BetMGM

Here are the steps for developing a sports betting app like BetMGM,

1. Market Research and Analysis

Businesses entering the sports betting market must first identify their target audience. Companies need to determine whether they want to appeal to casual bettors, experienced gamblers, or specific demographic groups.

2. Real-Time Odds and Data Integration

One essential feature for companies developing a sports betting app is the integration of real-time odds and data. Establishing connections with reliable data providers ensures that app users have access to accurate and up-to-date information.

3. Make In-Play Betting Engine

Companies must develop an in-play betting engine that allows app users to place bets during live events. This involves integrating live streaming services, which can be achieved through partnerships with sports leagues or broadcasters. The betting engine should be robust enough to handle rapid changes in odds, ensuring users can place bets in real-time without delays. 

4. Develop Risk Management Models

Sports betting companies must prioritize risk management to ensure the security of their platform. Risk assessment models should be implemented to identify and mitigate potential risks such as match-fixing or money laundering. 

5. Ensure Geolocation and Regulatory Compliance

For companies operating in the sports betting industry, geolocation services are a key compliance measure. This technology ensures that users are located in regions where sports betting is legally allowed. 

6. Provide Social Features and Community Building

Incorporating social features allows businesses to foster a sense of community among users. Sports betting apps can enable interactions, such as sharing tips and participating in forums. Gamification elements, such as leaderboards, rewards, and achievements, further engage users. 

7. Put Betting Limits for Responsible Gambling

Responsible gambling is an important aspect for businesses to consider. Companies should offer tools that allow users to set betting limits and manage their gambling habits responsibly. Features like self-exclusion options and deposit limits help promote healthier gambling behavior. 

Cost of Developing a Sports Betting App like BetMGM

Development Stage	Tasks	Cost Range (USD)
1. Research and Planning	– Market Analysis (target audience, competition, regulations)- Feature Prioritization (essential features based on user needs and business goals)	$1,000 – $3,000
2. Frontend Development	– UI Design (intuitive and visually appealing)- UX Design (seamless user experience)- Responsive Design (for mobile, tablet, desktop)	$3,000 – $10,000
3. Backend Development	– Server Infrastructure (scalable, reliable environment)- API Integration (real-time odds, scores, statistics)- Payment Gateway Integration (secure processing)- Data Security and Privacy (protect user data, comply with regulations)	$4,000 – $12,000
4. App Features	– Sports Betting (wide range of sports and markets)- Live Betting (place bets during games)- In-Play Statistics (real-time data for betting decisions)- Push Notifications (alerts for events, personalized recommendations)- Social Features (connect with friends, share betting experiences)	$3,000 – $8,000 per feature
5. Testing and Quality Assurance	– Manual Testing (device and platform testing)- Automated Testing (bug identification and fixing)- User Acceptance Testing (gather feedback from users)	$2,000 – $5,000
6. UI/UX Design	– Wireframing (basic app layout)- Prototyping (interactive usability testing)- Visual Design (colors, typography, imagery)	$2,000 – $7,000

Total Cost Estimate – $10,000 – $100,000

The cost of creating a sports betting app like BetMGM can be influenced by several factors, some of which are unique to this specific type of application. Here are some key variables to consider:

Real-time data integration

Sports betting apps rely heavily on real-time data feeds to provide accurate odds, live scores, and statistics. Integrating these data sources can be technically challenging and requires specialized expertise.

Complex algorithms

Developing algorithms for odds calculation, risk management, and fraud detection is a crucial aspect of sports betting apps. These algorithms require sophisticated mathematical models and can be computationally intensive.

Regulatory compliance

Sports betting is heavily regulated in numerous regions, which adds complexity and expense to the development process. Companies must ensure their apps comply with local legal requirements and obtain necessary licenses to operate within those jurisdictions.

Integration with payment gateways

Sports betting apps frequently handle financial transactions, including deposits, withdrawals, and bet placements. Integrating secure payment gateways can be complex and requires thorough attention to security measures and compliance regulations.

Tech Stacks Required to Develop a Sports Betting App like BetMGM

Here are the essential tech stacks required to develop a sports betting app like BetMGM,

1. Frontend Development

The frontend development of a sports betting app typically utilizes HTML, CSS, and JavaScript. These core languages enable the creation of interactive and visually appealing interfaces. Frameworks such as React, Angular, or Vue.js enhance the user experience by offering dynamic rendering and efficient state management. 

2. Real-time Data Streaming

Real-time data streaming is critical for a successful sports betting app. Companies implement technologies like Apache Kafka, Apache Pulsar, or Redis Streams to facilitate the streaming of live sports data. These technologies allow for the real-time updating of odds and provide features such as live betting, which significantly enhances user engagement. 

3. Geofencing

Geofencing technology is also vital for sports betting applications. Businesses utilize GPS, location APIs, and geofencing libraries to ensure that betting is restricted based on users’ geographic locations. 

4. Risk Management Algorithms

Companies leverage machine learning and statistical modeling to create risk management frameworks that can accurately calculate odds and manage risk exposure. These algorithms are instrumental in preventing fraud and ensuring a secure environment for users.

5. Odds Calculation and Modeling

Businesses utilize these technologies to determine fair odds and predict game outcomes. This capability is vital for maintaining competitiveness in the market and ensuring that users receive attractive betting options. Furthermore, effective odds management helps businesses mitigate risks associated with betting activities.

6. Sports Data APIs

Integrating sports data APIs is essential for accessing both live and historical sports data. Providers like Sportsradar, Genius Sports, or Stats Perform offer valuable data that businesses can use for odds calculation and real-time updates. By incorporating these APIs, companies can enhance user engagement through enriched content and timely information. 

Most Successful Business Models for Sports Betting Apps like BetMGM

The sports betting industry has evolved significantly with the advent of mobile technology, leading to the rise of numerous apps like BetMGM. These apps utilize various business models to attract and retain users while maximizing revenue. Here are some of the most successful business models for sports betting apps, 

1. Freemium Model

The freemium model allows app users to access basic features of the app for free while offering premium features at a cost. This model attracts a large user base, as users can explore the app without financial commitment. Once they are engaged, many opt for paid features.

Key Features:

• In-App Purchases: Users can buy advanced tools, exclusive betting options, or enhanced analytics.
• Subscription Services: Monthly or annual subscriptions provide access to premium content like expert betting tips or real-time analytics.

DraftKings and FanDuel utilize this model effectively by offering free play options alongside premium betting strategies and insights. They report millions of active users, contributing to their substantial revenue streams through in-app purchases and subscriptions.

2. Affiliate Marketing Model

The affiliate marketing model leverages partnerships with other websites or influencers to drive traffic to the betting app. Affiliates earn commissions for each user they refer to who places a bet.

Key Features:

• Commission-Based Earnings: Affiliates receive a percentage of the revenue generated from referred users.
• Targeted Promotions: Affiliates can tailor promotions based on their audience’s interests.

The affiliate marketing sector in sports betting is projected to grow significantly, with estimates suggesting it could reach $1 billion by 2025 due to increasing online engagement.Apps like BetMGM and Caesars Sportsbook have successfully implemented affiliate marketing strategies.

3. In-App Advertising Model

In-app advertising is another lucrative model where sports betting apps generate revenue by displaying ads from third parties. This model is particularly effective when the app has a large user base.

Key Features

• Display Ads: Banner ads or video ads are integrated within the app.
• Sponsored Promotions: Brands can sponsor specific events or promotions within the app.

Sports betting apps that effectively utilize in-app advertising can see revenue increases of up to 30% from ad placements alone.Apps like Paddy Power and William Hill incorporate various ad formats, including video ads during live betting events, which enhance user engagement while generating significant advertising revenue.

4. Data Analytics Subscription Model

This model focuses on providing users with advanced data analytics tools for a subscription fee. Users gain access to detailed statistics, predictive analytics, and personalized insights that enhance their betting strategies.

Key Features

• Real-Time Data Access: Subscribers receive live updates on games, player statistics, and betting odds.
• Predictive Analytics Tools: Advanced algorithms help users make informed betting decisions.

The demand for data-driven insights in sports betting has surged, with a reported 60% of bettors preferring apps that offer detailed analytics over those that do not. Apps like Zcode System and Betting Metrics specialize in providing comprehensive analytics tools for a subscription fee, catering to serious bettors looking for an edge in their wagering strategies.

Conclusion

The development of a sports betting app like BetMGM holds significant importance for both common people and businesses. For individuals, such apps offer a convenient and accessible platform to engage in their passion for sports while potentially winning financial rewards. For businesses, creating a similar app can present a lucrative opportunity to generate revenue through various avenues, including betting fees, in-app purchases, and partnerships with sports leagues and teams. 

Looking to Develop a Sports Betting App like BetMGM?

At Idea Usher, we specialize in crafting cutting-edge sports betting apps that rival industry giants like BetMGM. With our extensive experience of over 500,000 hours of coding in the field, we possess the expertise to deliver a robust and scalable solution. Our team will meticulously engineer a platform that seamlessly integrates advanced features such as real-time odds updates, live streaming, in-play betting, and secure payment gateways. Partner with us to elevate your sports betting venture and attract a loyal user base.

FAQs

Q1: How to make a sports betting app?

A1: Creating a successful sports betting app requires several essential steps. Conduct detailed market research to identify your target audience, assess competitor offerings, and recognize industry trends. Acquire the necessary licenses and permits from appropriate regulatory authorities to ensure compliance. 

Q2: Are sports betting apps profitable?

A2: The profitability of sports betting apps depends on the size of the user base, the level of engagement, the revenue model (e.g., commission on wagers, advertising revenue), and the overall market conditions. While sports betting can be a lucrative industry, it’s important to note that competition is intense, and success requires careful planning, effective marketing, and a strong understanding of the target audience. 

Q3: How long does it take to develop a sports betting app?

A3: The development timeline can fluctuate a bit depending on the features, the size of the development team, and the integration of third-party services. While a basic app with limited features might be developed in a few months, a more comprehensive app with advanced functionalities could take several months or even a year. 

Q4: What are the features of a sports betting app?

A4: A successful sports betting app offers a range of features to enhance the user experience and attract customers. Essential features include a user-friendly interface with intuitive navigation, live streaming of sporting events, in-play betting options, personalized recommendations based on user preferences, secure payment gateways, and robust data security measures.