The advantages and limitations of a gambling franchise

Monday, 2 August 2021

Maybe you thought of having your own bookmaker, your own gambling hall or, why not, a casino. Anyone can think of these things and experience shows that they are successful businesses. However, the most important obstacle is the cost, often exorbitant. Only if you think of an online bookmaker, that offers only sports bets, the list of costs can be very long. Business licensing costs, operating costs, salary expenses, insurance costs, annual/quarterly or monthly fees, taxes, administrative fees, and the list goes on.

High costs, high profits on bets and slots

The operating costs include the costs of carrying out the activity. Odds, betting offer, listing of matches and bets, maintenance, supervision of the game activity, payment of winning bets, all are done by third party operators. And these services have high costs, difficult to cover even by a very consistent capital.

 franciza la pariuri și păcănele

franciza la pariuri și păcănele

For the players, legality and safety are the most important. They guarantee them games fairness, payment security for the big winnings, a safe gaming environment and the fact that they can have fun and relax in a pleasant environment.

Fun, winnings, and opportunities offered by bets and slots

In general, in Romanian gambling, you will find opportunities for partnerships and franchises. Whatever the term used, there are two main working options:

  1. Franchise/Partnership percentage. In this case, it may be a certain percentage of receipts (5%, 7%, 9%, etc.) that will be returned to you monthly, based on the activity carried out.
  2. Franchise/Partnership 50% – 50%

Basically, the second variant is more common and used on the market. 50% – 50% is the reference percentage, but it can vary. The 50% of the franchisee consists, perhaps, of 55% live bets, 52% indoor games, 45% lotteries, etc., depending on several contractual factors.

You will have to take care of the commercial space, its planning and maintenance and the management of the employees. The employed staff is in charge of the franchisee, but you benefit from continuous training, support and, sometimes, from certain motivational bonuses.


Read also “The Influence of Artificial Intelligence on Gambling”


Advantages of a gambling franchise

Low costs – this includes costs related to the arrangement, maintenance of the workspace and salary expenses. Incomparably lower than the costs of licensing, fees and other expenses that arise in the field of gambling. In addition, the operator is responsible for obtaining all approvals and licenses related to the gaming activity.

Low risks – the experience and expertise of the franchisor helps you enormously. Whatever situation you encounter, it has happened before. The work procedures are made to help you and you will know what to do every time. The franchisee benefits from the knowledge of the franchisor from the very beginning, in this way the initial errors are avoided as much as possible.

Recognition – A gambling operator can have the image to benefit from. In some areas certain bookmakers are more developed, in others there is close competition in the market. You will benefit from the beginning from the image and recognition of a brand.

Ongoing support – There are many operational problems in any activity. Depending on how they are treated and resolved, the image of your agency has to gain. From the way of paying the winnings to the loyalty of the clients, the interaction with them and the treatment of all the administrative aspects, you will be helped to solve any problem more easily.

Attractive Profits – To make a profit you need to give players fun, adrenaline, a pleasant environment, safety and confidence. The relationship with customers is a strong point that you have to treat as such. With help in all areas, building your customer portfolio remains the segment you can and should focus on.


Who wins, you or the customers?

Slots, lotteries, indoor games and sports betting are all games of chance. To a greater or lesser extent, the influence of luck has an impact in all these sub-areas.

In this field, fun is at the forefront. Everyone wants to have fun, wants to relax and have pleasant experiences.

Often, however, the reality can be different and present itself in a different light. The desire to win can overcome the need for fun. And this has an important financial impact.

For an entrepreneur, a franchisee, high profits earned by customers can mean financial difficulties. If this happens, your partner will support you financially, and you will recover in the future.

When customers lose or feel they have to lose, they will tend to stop coming, avoid the location, or reduce the stakes. When customers win repeatedly, the tendency to return to your location is high.

A certain balance is required and it is the healthiest, from an economic point of view. A partnership in which everyone can win. Excesses have repercussions, are reflected in future activity and are not desirable.

Limits of the gambling franchise business

It can be a limitation that you have to ensure certain standards. You cannot modify, improve or come up with other options. You have to comply with a certain work system, adapt to established legal rules and work procedures.

Partner status does not give you the right to decide on the main activity. You have to follow the rules of the game, to comply, to find solutions to work independently. For example, if the brand’s reputation is affected by a scandal, it has repercussions on all partners.

The success of a gambling operator does not guarantee your own franchise success. The reasons can be varied, from managerial incapacity to lack of experience or poor management of customer relations. Every step has a meaning and contributes to the way your business will work.

You have to follow a certain work schedule. To comply with financial rules regarding the circulation of money (cash register, accounting registers, safe, etc.). The proper functioning of the activity depends on their observance.

Is it worth investing in a gambling franchise?

Definitely yes! But the success of this business depends on many factors. It is not an easy business as some would think. Previous experience and development of the field shows that it is a profitable business. At least that’s how things look from the outside.

There are also certain factors to consider before making a decision:

  • Congestion and saturation of certain areas can be an alarm signal,
  • Commercial ford, people’s tendency to play is different depending on the area. For example, being located close to the center of a big city is not beneficial,
  • Earnings may not live up to your expectations, especially after taxes, fees and wages are paid,
  • Patience and capital are directly linked. Unforeseen situations may arise, such as during the pandemic, when street bookmakers were closed or operated at low capacity,
  • The field is not respected in terms of contributions to the state budget. There are still voices campaigning against gambling without understanding this phenomenon.

Author: Editor

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