B2B Development for B2C Operators Wanting to Enter Gambling
Simply Alpha Capital provides a supporting and advisory role in developing a sports betting concept for international B2C and B2B customers.
- Licensing and Regulatory Compliance Support
- Selecting the Sports Book
- ICS Manuals
- Support with entering markets
- Employee development
- Training and education
- Responsible betting
US Business Expansion for Non-US online Gambling Companies
The US market is new an evolving. Each State will have different regulatory guidelines (even if the core principles will remain). Some States will require casino partners, others will not. We can provide both regulatory (licensing) and business development support to Asian and European operators looking to expand into the US markets.
Adding Sports Betting to Crypto Exchanges
The crypto market is new and still immature. We at Simply Alpha Capital believe strongly that crypto currency exchanges should add gambling to their product mix. After two years analyzing crypto users behavior, we are confident that the cross over is potential significant.
Currently most gambling operators and regulatory bodies are wary of crypto to enter gambling. At Simply Alpha Capital we are on the forefront of bringing the two industries together. We can provide several options for Crypto currency exchanges to enter the market. We can provide all the same services we provide to any B2C operator who wishes to expand into Gambling; with the understanding that crypto exchanges will have special and very specific needs (such as adding Bitcoin or other coins/tokens for gambling)
In typical sports books that add other gambling products (casino, bingo, slots, etc..) the revenue increase can be as much as 30% of total revenuers. We believe that crypto exchanges who add gambling will see similar results from cross over revenues from exchange fees to gambling revenue.
Contact us to help you add significant new revenue opportunities
Acquisition of an Existing Sports Betting Platform
The online gambling industry experienced massive consolidation in the last 10 years. The largest chucks of online gambling revenues go to sports book operators. Casino and Bingo sites, have also been popular on a regional basis, but it’s the Sports betting brands that attract the largest amounts of players. As a result these sites have become gambling destination websites where players can bet on sports first and then are invited to cross over to poker, casino, slots, bingo, virtual games and even live dealer games done via live video streams. This especially works, because sports betting is a very regional experience. Players want to bet on their local teams and those must be displayer by local IP; a lot of testing goes into making sure the right games are provided to the right localities.
The other impact of consolidation was that there are now very few B2B providers available to buy; plus the cost of doing a raw (with core services) B2B deal is now anywhere from 10-15% of revenue share, making building new software quite an expensive option.
If a crypto currency exchange wants to enter the market with its own technology, have an existing brand, and have a built-in team ready to partner with in the long run, then there are still some options. However, in some cases they would require a hostile takeover of a minority founder.
If you are interested, please contact us. We can help you expand your business in this exciting industry.
Partnering with a B2B Platform
If acquiring an existing sports book isn’t a viable option, or a crypto business with a large number of users want to enter the gambling market quickly, then then the next best option is partnering with a B2B provider. Since its a crypto business there are not a lot of public companies that are ready to enter this market in a meaningful way. Some dont even offer an Asian product since they are concerned about impacting their licensing status in white markets – you see some of the UK listed public gambling companies are trying to sell themselves to large US gambling interests looking to expand into online gambling as the US markets slowly open up. This means they dont want to add an unregulated business to their menu, even on a B2B basis.
At Simply Alpha we have negotiated with several of the remaining major providers who are interested in getting into crypto gambling. And we can introduce exchanges to these providers.
Nevertheless, it’s important to understand that the potential business here is meaningful. A B2B operator will provide the following:
- All software needed for sports and casino
- casino, poker, live dealer, slots, bingo, etc partners
- Back end software for risk analysis
- Trading teams for pricing
- Sports risk management for up to 100K live games
- Software integration team (B2B end)
- Local specifications for individual markets (displayed to users by IP)
- B2B licensing
- Support for Sports Book and other gambling
- One Time Software Licensing fees ($100K-$300K)
The B2C operator needs to provide the following:
- Project management
- Business plan (regulatory strategy, Internal controls, marketing plan, etc..)
- Front end software (website) and front end support teams
- Data feeds
- Marketing budget
- Crypto Wallets (from Exchange to Sports book ) integration
- Management team consisting of financial/accounting, internal reporting (player data reporting), database management, marketing team, regulatory, compliance, risk/fraud management (player by player using software from B23B provider), customer support, software (front end teams)
The start up costs are not significant, and a B2B site in crypto could be deployed with a Curacao licensing targeting grey markets in about two months. But a crypto site should hire some staff since it’s still a new business outside the core business of exchange trading.
Joint Venture with Simply Alpha
Simply Alpha Capital is lead by a team of gambling experts. We know a lot about the industry. Any new B2C operator wishing to enter gambling can do this with an adequate B2B partner that can provide some consulting services. But the most effective solution is to hire your own teams. Because of the product growth taking place in the industry, jumping into crypto gambling might seem daunting, even if everyone understands it’s an interesting opportunity.
We have an ideal solution. We can either introduce you to and help you hire a lead project manager (future CEO) for your B2C operations, or we can offer a Joint Venture arrangement where Simply Alpha Capital takes over the hiring and entire project management over for you. We will also invest in the partnership along side your company. Your exchange will remain the primary beneficiary of revenues, but you will enter the business with a team put in place to help you be successful from the start. We can then negotiate long-term buyouts of the JV for the exchange so that once the business is humming along, you can buy us out. This is the fastest and safest way for you to entire gambling, and we are here to assist you.
Partnering with us offers several advantages:
- We select a B2B partner (using our experience)
- You can buy out the JV knowing the terms in advance
- We can mirror the player database to ensure your assets re protected
- You will have direct access to a third party audit control to verity revenues (B2B partner provides this)
- You have experts helping you from the start (helping you avoid pitfalls and understand the business)
- Since we will hire a known B2B provider will have the ability to change providers or build you own software in the future.
With our help we can get a team in place, a deal done and revenues flowing in 90-120 days in a worry free way. We think this will be an excellent option for many players.