Starting a sportsbook is an exciting venture in the iGaming industry, but before you dive in, one critical decision will shape your operations: deciding which type of bookmaker you want to become. Your choice will influence licensing, technology requirements, risk management, marketing strategy, and long-term profitability.
This article breaks down the main types of bookmakers, their advantages, and what to consider when entering the market.
Retail Bookmakers
Retail bookmakers operate physical betting shops. Players visit the shop to place bets on sports events.
Advantages
- Direct customer interaction builds loyalty
- Cash handling is straightforward
- Localized market focus reduces competition
Challenges
- High operational costs (rent, staff, utilities)
- Limited scalability
- Restricted to local regulations and markets
Best for
Entrepreneurs looking for a brick-and-mortar presence and targeting a specific local audience.
Online Bookmakers
Online bookmakers operate via websites or mobile apps, allowing users to bet remotely on sports events worldwide.
Advantages
- Lower operational costs compared to retail
- Global reach and scalability
- Ability to integrate multiple betting products (sports, esports, casino, in-play markets)
- Easier to collect and analyze player data for marketing and risk management
Challenges
- Requires robust technology and cybersecurity measures
- Compliance with multiple jurisdictions
- Competitive market with established operators
Best for
Operators seeking scalable, modern sportsbooks with international growth potential.
Betting Exchanges
Unlike traditional bookmakers, betting exchanges allow users to bet against each other, with the platform earning a commission on net winnings.
Advantages
- Minimal risk for the operator compared to traditional bookmaking
- Enables in-play betting and trading strategies
- Often attracts professional bettors seeking better odds
Challenges
- Requires sophisticated trading and risk management systems
- High liquidity is needed for smooth operations
- Marketing to attract both backers and layers can be challenging
Best for
Operators with advanced technology capabilities and interest in creating a professional, competitive trading platform.
White-Label / Turnkey Operators
White-label solutions allow operators to launch a sportsbook under their brand while using a fully managed platform provided by a third-party supplier.
Advantages
- Fast market entry without developing technology from scratch
- Compliance, licensing, and support handled by the provider
- Ideal for testing markets or focusing on marketing rather than infrastructure
Challenges
- Limited control over platform features
- Revenue sharing with the white-label provider
- Less flexibility in product customization
Best for
Entrepreneurs seeking low-risk entry into online sports betting with minimal technical overhead.
Factors to Consider When Choosing Your Bookmaker Type
- Target Market & Geography
- Local vs. global audience
- Regulation in your chosen region
- Budget & Capital Requirements
- Retail shops require more upfront investment
- Online or white-label solutions can be more capital-efficient
- Technology & Infrastructure
- Online platforms need reliable betting software, data feeds, and payment systems
- Exchanges require advanced risk management
- Licensing & Compliance
- Ensure you meet local regulatory requirements
- Consider jurisdictions like Curacao, PAGCOR, MGA, or UKGC
- Growth Strategy
- Are you aiming for rapid scale, brand building, or niche targeting?
Conclusion
Choosing the right type of bookmaker is one of the most important early decisions in launching a sportsbook. Each option—retail, online, exchange, or white-label—comes with unique benefits, risks, and operational requirements.
With the right strategy, licensing support, and technology partner, operators can successfully enter the market, scale efficiently, and meet the growing global demand for sports betting.
