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The sports betting industry has witnessed exponential growth in recent years, which is driven by the rapid expansion of digital platforms and the increasing legalization of sports betting across various regions. Yet, prior to the emergence of modern sports betting apps like PointsBet, the industry faced numerous challenges. Users often had to rely on traditional betting shops, websites with cumbersome interfaces, or offshore platforms that needed more transparency and security.
The global sports betting market is expected to reach $182 billion by 2030. Mobile betting apps are a significant driver of this growth, as they offer users the convenience of placing bets anytime and anywhere. Building a successful sports betting app like PointsBet involves various technical aspects, including secure payment gateways, real-time data integration, user authentication, and geolocation features to comply with regional regulations. This blog delves into the key elements of developing a sports betting app like PointsBet, covering essential features, technology stack, and estimated development costs.
Overview of Sports Betting App PointsBet
PointsBet offers a variety of options for betting on different sports. It stands out for its easy-to-use interface, quick betting process, and attractive odds. PointsBet allows you to place bets on popular sports like football, basketball, baseball, hockey, and more. The app also provides betting on live games and parlay bets, and enjoy various promotions and bonuses, making it a great choice for both new and experienced bettors. Here are some standout features of the sports betting app PointsBet:
PointsBetting
What sets PointsBet apart from other sports betting apps is its signature PointsBetting feature. This innovative betting style allows you to wager on the margin of the outcome. For instance, if you predict a basketball team will win by 10 points and they exceed that margin, your payout multiplies according to how much you were correct. However, if the prediction falls short, your losses also increase.
Fixed Odds Betting
The core of PointsBet’s appeal is its fixed odds betting system. In this format, the odds for each event are set in advance and remain unchanged, no matter what happens during the game. This ensures bettors know exactly how much they can win or lose before placing a bet, creating a sense of predictability.
Live Betting
For those who enjoy betting while watching a game unfold, live betting is another feature at which PointsBet excels. Live betting allows users to place wagers on events as they happen, such as which player will score next or what the halftime score will be. If you notice a team’s strategy changing or a key player gaining momentum, you can adjust your bets accordingly.
Same Game Parlay
Another attractive feature is the Same Game Parlay option, which allows users to combine multiple bets within a single game. For example, you can bet on a player’s total points, the winner of the match, and the halftime score—all in one parlay. This feature can significantly increase your potential payout since all your predictions must come true to win.
Cash Out
The cash-out option provides users with the flexibility to settle their bets before the event concludes. Whether you are satisfied with your winnings or concerned about potential losses, this feature allows you to cash out and secure your profits. For example, if your team is leading but you’re worried about a last-minute comeback, you can opt to cash out early and lock in a partial win.
Key Market Takeaways of Sports Betting Apps
According to Grand View Research, in 2022, the global sports betting market was valued at $83.65 billion and is projected to grow at a CAGR of 10.3% from 2023 to 2030. This growth is fueled by significant changes in gambling regulations worldwide, increased use of connected devices, and advancements in digital infrastructure.
Source: GrandViewResearch
The global sports industry was heavily impacted by the COVID-19 pandemic, as sporting events faced widespread restrictions. Despite this, online sports betting surged in popularity, particularly with the rise of eSports and other alternative betting options. Additionally, the growing use of smartphones has made sports betting more accessible, contributing to the growth of the market.
As of January 2023, the American Gaming Association reported that sports betting is now legal in 36 states, an increase from 32 states in 2021. Additionally, during the first ten months of 2022, approximately $73 billion was wagered legally on sports in the United States.
developers, with combined 50000+ coding hours experience
Are Sports Betting Apps Like PointsBet Profitable?
Sports betting platforms like PointsBet showcase the enormous potential for profitability by tapping into multiple revenue streams, including betting margins, transaction fees, premium memberships, and affiliate programs. With engaging features like in-play betting, micro-betting, and personalized odds, these platforms drive user interaction and increase the volume of bets, leading to higher revenues. By integrating loyalty programs, gamification, and VIP accounts, businesses can enhance customer retention and maximize lifetime value. The ongoing legalization of sports betting worldwide presents new market opportunities, while accepting cryptocurrency payments expands reach by enabling fast, low-cost transactions. Cloud-based technology ensures scalability, allowing platforms to grow quickly while controlling operational expenses.
For business owners, launching a sports betting platform is a lucrative opportunity to capitalize on growing demand by building user trust through compliance, security, and transparency. Strategic partnerships with sports leagues and media channels can increase visibility and attract high-value customers, while affiliate marketing programs lower acquisition costs and drive growth. Leveraging advanced analytics and personalized experiences keeps users engaged and boosts profitability. With the right approach, businesses can create a highly scalable, profitable platform that combines the excitement of sports with innovative technology, unlocking sustainable growth in this rapidly expanding industry.
Popular Sports Betting Apps
DraftKings has seen impressive financial growth, reporting revenues of approximately $2.3 billion in 2022, with projections suggesting an upward trend into 2024. The company’s profit margins have also been expanding, driven by a robust user base and increasing market demand, particularly following the expansion of legalized sports betting across many U.S. states.
FanDuel, operated by Flutter Entertainment, is another major player in the sports betting market, generating around $2.2 billion in revenue in 2022. FanDuel has capitalized on the growing interest in online sports betting by offering user-friendly interfaces and a comprehensive array of betting options.
Business Model of Sports Betting App PointsBet
PointsBet operates on a differentiated business model designed to compete in the crowded sports betting and gaming industry. The company leverages innovative betting options, strategic market expansion, and partnerships to generate multiple revenue streams.
Here’s a breakdown of PointsBet’s business model:
1. Wagering Revenue
The core of PointsBet’s revenue generation is the money earned from bets placed by users. The platform collects the total wager amount when a bettor places a losing bet. This simple yet effective model is the backbone of all sports betting businesses.
In addition to standard bets, PointsBet offers various wager types, including high-risk PointsBetting, which multiplies winnings (or losses) based on the accuracy of a bet. This unique offering increases engagement and bet volume, thereby enhancing the company’s ability to generate revenue.
2. Built-in Profit on Odds
PointsBet ensures profitability through a mechanism called vigorish or juice. This involves setting odds slightly in favor of the house. For example, instead of giving both sides equal -100 odds (or 1:1), PointsBet might offer odds like -110. This small percentage difference guarantees a profit margin for the bookmaker, regardless of the event’s outcome.
3. Promotions and Partnerships
PointsBet actively builds partnerships with sports leagues, teams, and media companies to enhance brand visibility and attract users. The company previously collaborated with NBC Sports to boost its presence in the U.S. and signed marketing deals with Australian sports leagues. Although partnerships increase initial acquisition costs, they enhance user loyalty and lifetime value (LTV), generating sustainable revenue over time.
Steps for Sports Betting App Development like Pointsbet
Creating a sports betting app similar to PointsBet requires a well-structured process. Below is a detailed roadmap for the sports betting app development process, ensuring success through scalability, innovation, and user-centric features.
Step 1. Consultation and Requirement Analysis
Before diving into development, understanding the client’s goals and target market is critical. Identify whether the focus is on casual bettors, sports enthusiasts, or high-rollers. Each group has unique preferences; for instance, casual users may favor simple bets, while high-rollers seek more complex betting options like PointsBetting or parlays.
Determine whether users prefer pre-match betting, in-play bets, parlays, or future bets. This insight will guide feature prioritization. Identify features that differentiate the platform, such as personalized recommendations, superior odds, or tools for in-play betting to maintain user engagement.
Step 2. Regulatory Compliance
Operating in the sports betting industry requires strict adherence to legal and regulatory frameworks. Obtain the necessary licenses and permits based on target jurisdictions. PointsBet, for example, operates under various licenses across multiple regions, such as Australia and Canada. Ensure that the app is compliant with data privacy laws like GDPR in Europe or CCPA in the U.S. Adhering to these standards is essential to avoid penalties and build trust with users.
Step 3. Technical Feasibility and Infrastructure Assessment
Assess the technical infrastructure to ensure the app can handle future growth. If the user base expands rapidly, the backend must be prepared to scale without interruptions. Identify gaps in the current tech stack, ensuring that databases and cloud infrastructure can efficiently support real-time betting and streaming services.
Step 4. Selecting the Tech Stack
Selecting the right tech stack is a crucial part of app development because it determines the app’s performance, scalability, and overall user experience. Use React Native or Flutter to develop a cross-platform app that works seamlessly on both Android and iOS. Opt for Node.js or Python (Django/Flask) for a reliable backend that supports fast and efficient server-side operations. Choose MongoDB or PostgreSQL for data management, offering flexibility and fast retrieval to support live betting scenarios. Use AWS, Google Cloud, or Microsoft Azure for hosting, ensuring scalability and reliability to handle peak betting periods.
Step 5. Security and Fraud Prevention
Apply strong encryption algorithms to protect sensitive user data, ensuring compliance with privacy regulations. Implement multi-factor authentication to secure user accounts and prevent unauthorized access. Use AI-powered tools to monitor transactions and detect suspicious behavior, preventing fraud.
Step 6. Development Methodology
Use Agile development methodologies, such as Scrum or Kanban, to ensure flexibility and continuous feedback throughout the process. Break the project into smaller sprints with regular updates to stakeholders. Conduct unit, integration, system, and UAT to ensure the app is free of bugs and performs optimally. Automate deployment pipelines to release updates efficiently. Monitor app performance to address any technical issues promptly.
Cost of Developing A Sports Betting App Like PointsBet
| Category | Details | Cost Range |
|---|---|---|
| 1. Research and Planning | Market analysis, feature prioritization, business model definition. | $1,000 – $5,000 |
| 2. Front-End Development | UI/UX design, responsive design for mobile and desktop platforms. | $3,000 – $15,000 |
| 3. Back-End Development | Server-side logic, API development, real-time data integration. | $5,000 – $25,000 |
| 4. App Features | Core features: user registration, deposit/withdrawal, bet management, real-time updates, live streaming. | $1,000 – $7,000 per feature |
| Additional features: in-play betting, parlay options, cash-out, social features, recommendations. | ||
| 5. Testing and Quality Assurance | Unit testing, integration testing, user acceptance testing (UAT). | $2,000 – $8,000 |
| 6. Deployment and Maintenance | App store submission, ongoing maintenance for bug fixes and updates. | $1,000 – $5,000 per year |
Total Cost Estimate $10,000 – $100,000
Here are some factors that impact the cost of developing a sports betting app:
Real-Time Data Integration
Sports betting apps require real-time data feeds for accurate odds, scores, and in-play updates. This involves integrating APIs from third-party sports data providers. The cost of data feed subscriptions and the complexity of integrating these into the app can significantly affect the overall budget.
Payment Gateway Integration
Sports betting apps require secure payment gateway integrations to handle deposits and withdrawals, ensuring compliance with local financial regulations. The choice of payment gateway, transaction fees, and the need for compliance with AML and KYC regulations can add to development costs.
User Verification Systems
Sports betting apps often require robust user verification systems to prevent underage gambling and ensure legal compliance. Integrating identity verification services, biometric login options, and KYC protocols can add to both development and operational costs, making this factor unique to gambling-related apps.
Odds Calculation Algorithm
Developing a precise and reliable odds calculation system is crucial for a sports betting app to ensure fair play and competitive offerings. Custom algorithms can be complex and require data analysis expertise. Building or customizing this in-house versus using a third-party odds provider can significantly affect costs.
Conclusion
In my opinion, investing in a sports betting app like PointsBet is a promising venture for business owners looking to tap into a rapidly expanding market. With the right features—such as real-time odds, secure payment gateways, seamless user experience, and live streaming capabilities—your app can stand out in a competitive landscape. While the development cost may range from $10,000 to $100,000 depending on the complexity, this investment can yield substantial returns as more users flock to digital platforms for sports wagering. The key is to partner with experienced developers and prioritize a robust, user-centric design that ensures compliance with regulations, providing a reliable and engaging platform for users.
How Can Idea Usher Help?
At Idea Usher, we’re dedicated to helping you bring your vision of a sports betting app like PointsBet to life. With over 500,000 hours of coding experience in app development, we have the expertise and passion to create a platform customized to your needs.
We understand the challenges and complexities of the sports betting industry, from ensuring regulatory compliance to building a seamless user experience that keeps users engaged. Our team will work closely with you every step of the way, turning your ideas into a user-friendly app that stands out in this competitive market. Let’s collaborate to build an app and drive your business growth and success. if you are interested in making an app that stands out, you can check out our services page!
FAQs
How do I ensure my sports betting app complies with local regulations?
To ensure compliance, you need to obtain the required licenses in each region where your app will operate and follow the legal guidelines for online gambling and sports betting. Partnering with legal experts can streamline this process.
What kind of data integration is required for a sports betting app?
Sports betting apps need real-time data integration for scores, odds, and event updates. This usually involves working with third-party sports data providers through APIs to ensure accurate and timely information for users.
How can I monetize a sports betting app?
Monetization strategies include taking a commission on each bet, offering in-app purchases, running advertisements, and providing premium membership plans with additional features or perks.
What features should a sports betting app like PointsBet include?
Essential features include user registration, deposit and withdrawal options, real-time odds updates, bet placement, in-play betting, cash-out options, and secure payment integration.
