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How much does it cost to open a sportsbook from scratch?

4 Posts
4 Users
Active Member
Joined: 3 months ago
Posts: 9
Topic starter  

I am considering breaking away from running a sportsbook with a pay per head and just opening one from scratch. I appreciate that a PPH is cost efficient but want to know if it might be better on the long run to just buy or hire some programmers to make me a sports betting software.

I read this article, about opening a sportsbook in costa rica which has good information, but there is nothing specific there about the cost of buying the betting software.

Active Member
Joined: 3 months ago
Posts: 10

Overall, it will depend on how big you want your betting to be and if it will be a physical sportsbook or just an online one. If you do a physical betting shop, you will have to include that in your budget and it will also depend on whether you are renting or buying the location. Please give more details.

I would say at a minimum at least $500,000.

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Andie Edwards
Active Member
Joined: 2 months ago
Posts: 9

I think it would range from around $300,000 to $500,000 for an online sportsbook.

The thing is, you also need to understand that the cost is just to open the business itself, get the necessary licenses, software, etc. You also need to look at the monthly operational expenses you will be making. This would be:

  • utilities
  • labor/salary (don't forget to include benefits like medical, dental, social services etc)
  • rental cost
  • taxes
  • and a certain amount set aside for miscellaneous business expenses.

Will your projected revenue be more than that? Because if that is the case and you have the money, then go for it. That is, however, a full fledged business so you can't quit or leave any time you want to.

Will Johnston
Eminent Member
Joined: 3 months ago
Posts: 18

I found this article,, helpful when researching this topic. The article states you need at least 30% of your maximum handle for payouts. Also, you need to put aside money for expenses, such as PPH fees.