Today, online sports betting has become one of the quickest-growing sectors in the iGaming industry. Along with this massive industry expansion, many operators have entered the market hoping to invest in this increasingly lucrative business.
However, many of these beginner operators often make critical mistakes, which can cause problems like regulatory roadblocks, scaling issues, and platform collapse.
One of the most vital missteps is selecting the wrong platform model. Here is how operators can choose between turnkey and custom sportsbooks to simplify operations and maximize profitability.
Key Definitions: What Are Turnkey and Custom Sportsbooks?
Turnkey Sportsbooks
Turnkey sportsbook software is a pre-built sportsbook with a variety of essential pre-integrated features, including risk management tools, odds feeds, and an admin dashboard. These sportsbooks are cost-effective and can be launched within 3-5 weeks. Turnkey sports betting software offers extensive customization freedom, and operators can make various on-demand customizations like branding changes and additional integrations.
Custom Sportsbook Development
Custom sportsbooks are essentially built from scratch. This is a capital-intensive platform model, and it offers complete platform ownership and customization freedom. Integration of unique platform features is possible within a custom-built sportsbook. A custom sportsbook deployment process can take between 8-12 weeks.
Turnkey vs Custom Sportsbooks: Key Comparison Factors
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Turnkey VS Custom Sportsbooks: An Overview |
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Topic |
Turnkey Sportsbooks |
Custom Sportsbooks |
|
Customization Freedom |
Extensive but with limits |
Unlimited customization freedom |
|
Differentiation Potential |
Pre-defined set of features can be added |
Unique features can be added |
|
Affordability |
Cost-Effective |
Capital-Intensive |
|
Launch Time |
3-5 weeks |
8-12 weeks |
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Operational Complexity |
Relatively Low |
Relatively high |
When it comes to evaluating both models, operators need to have a proper set of criteria for review. As an operator, you can use the following criteria pointers:
- Platform Ownership
Why It Matters: The level of platform ownership determines several crucial topics, including permissible customizations, payment of GGR to the provider, ownership rights in legal disputes, etc.
Turnkey Sportsbooks: While turnkey sportsbook software offers an extensive scope of ownership, the operators do not own the platform completely.
Custom Sportsbooks: A custom platform is completely owned by the operator, which includes software source code ownership and full IP transfer.
- Customization and Differentiation Potential
Why It Matters: Implementing on-demand customizations helps in aligning the platform with your business goals. In addition, integrating unique platform features can also lead to a competitive advantage within the market.
Turnkey Sportsbooks: A turnkey sportsbook offers extensive customization freedom. However, integration of unique platform features (like unique bonus systems) is not usually possible.
Custom Sportsbooks: A custom sportsbook offers complete customization freedom, including integration of unique platform features and sports betting mechanics.
- Platform Affordability
Why It Matters: Affordability is an important criterion for platform model selection because it greatly affects an operator’s budget. This, in turn, affects their capacity for marketing, expansion, and maintenance.
Turnkey Sportsbooks: A turnkey sportsbook solution offers an affordable launch with a pre-integrated platform, which is ideal for operators working with a limited budget.
Custom Sportsbooks: Custom sportsbooks need a large amount of capital because they are being developed from scratch.
- Launch Time
Why It Matters: Timing matters in sportsbook operation – it enables a strategic market entry, ensuring a stronger position. In addition, it also allows operators to plan for seasonal promotions, tournament-based activity, etc.
Turnkey Sportsbooks: A turnkey sportsbook offers a quick launch because it is pre-built. It can be launched within 3-5 weeks.
Custom Sportsbooks: A custom-made sportsbook needs to be built from scratch, and requires 8-12 weeks for deployment.
- Level of Developmental/Operational Complexity
Why It Matters: Platforms with reduced developmental/operational complexity enable operators to invest more time and effort in focusing on tasks like branding and marketing.
Turnkey Sportsbooks: Turnkey sportsbook software offers ready-to-use payment gateways, platform analytics, security and risk management, etc. This enables operators to work on functions like scaling, marketing, and innovation.
Custom Sportsbooks: A custom sportsbook is built from scratch, and operators need to handle a variety of crucial functions like selecting the platform architecture, managing integrations, and maintaining an in-house support team post-launch. This increases operational complexity.
Turnkey or Custom Sportsbook: What To Choose?
If you still feel confused about how to select a sportsbook deployment model, you can work with a situation-based evaluation to make your selection.
Why Choose Custom Sportsbook?
You can select a custom sportsbook if:
- You have a high amount of capital and time.
- You need full customization freedom and ownership.
- You need unique features within your platform.
- You have a proper long-term business vision.
- You have significant experience in the iGaming industry.
Why Choose Turnkey Sportsbook?
You can choose a turnkey sportsbook if:
- You want a quick market entry.
- You want to focus more on marketing rather than technical operations.
- You have a limited budget for launch.
- You have limited operational experience in iGaming.
- Regular sportsbook features are sufficient for your aims.
- You are testing a new market before committing to a custom platform.
Conclusion
Sportsbook development, launch, and operation are complex processes, especially for operators who have recently entered the iGaming industry. When it comes to choosing between turnkey and custom sportsbook developments, it is not just a choice between two platforms, but also a choice between control and speed. As an operator, you need to understand your own strengths and weaknesses, your operational aims, and your capabilities to make the correct choice that will suit you in the long run.
