Sportsbook software
Sportsbook software is the whole machine behind a book that takes bets from the public: the odds, the risk desk, the accounts and wallet, the identity checks, the payments and the site the players see. An operator either licenses it from a provider or builds it, and in both cases the software is the smaller part of the bill.
Not the same thing as bookie software
A bookie running his own players rents a finished site from a per-head shop and pays by the head. He knows his players, they bet on credit, and the shop never touches the money. That is bookie software, and it is a different business.
Sportsbook software is for an operator who takes deposits from people he has never met. Strangers mean deposits, withdrawals, identity checks, fraud, a regulator and a public that will bet the favorite in the big game with both hands. Every one of those needs a piece of the platform, and the pieces are what you are buying.
What the platform is made of
The providers all draw the same diagram, whatever they call the boxes:
- The odds feed. Prices and results for every event, from a data supplier, your own traders, or both. Live betting needs a fast feed and an official source for results.
- Trading and risk management. Liability by event and by market, limits by customer, rules for which bets are accepted automatically and which wait for a trader, and the tools to move a line or take a market down.
- The player account and wallet. Registration, the balance, bet history, bonuses, and the rules that stop a player betting money he hasn't got.
- Payments. Deposit and withdrawal methods, each with its own fees and its own fraud problem.
- KYC and checks. Identity, age, and where the player is, before he deposits or before he withdraws, depending on the rules the operator works under. The KYC page covers this from the player's side.
- The front end. The website and the apps, the board, the bet slip.
- The back office. Reporting for the operator, for the accountants and, where the book is licensed, for the regulator.
The part that decides whether you make money
Everyone sells the front end, because a buyer can see it. I'd spend my time on the risk side, because that is where a book makes or loses its money. The line setting page explains that most books copy their numbers rather than make them, and a book running on a bought feed is copying too. That is fine for the big markets, where the number has been bet into by everybody. It is dangerous in the small ones, where a feed can be slow and nobody at your shop is watching.
So I'd ask a provider what happens in the ten seconds after the market moves: does my price follow on its own, can my trader override it, and can I set limits by customer rather than one limit for everybody? A platform that treats every player the same will be beaten by the few who bet for a living. The risk management page says why knowing your players is half the job.
How it is paid for
I can't give you a price, because providers quote by the deal and the deals differ. What I can give you is the shapes they come in, and most deals combine some of them. A setup or license fee up front. A share of revenue, usually calculated on gross gaming revenue (the money the players lost, before your costs) or on a net figure after bonuses and payment fees, and the difference between those two is worth reading the contract for. Monthly minimums. Separate charges for the odds feed, for live data, for each payment method and for each identity check.
Work the share out on your own numbers before you sign. Say your players bet $1,000,000 in a month and you hold 5 percent of it. That is $50,000 of gross revenue. At a made-up share of 15 percent, the provider takes $7,500. In a month when the favorites all come in and you hold 1 percent, revenue is $10,000 and the share is $1,500, but a $10,000 monthly minimum (also made up) would still be due. The hold page explains why a month like that happens.
The software is not the biggest cost. Licensing, payment processing, marketing, staff to trade and to answer the players, and the bankroll to pay a bad month will usually come to more.
Buying, licensing or building
People search for sportsbook software for sale as if they could buy it once and own it. Usually you can't, not in that sense. Most of what is offered is licensed: you pay to use it and the provider keeps the code. Some providers do sell a copy of the source, which you then have to host, maintain and keep supplied with odds yourself.
Building your own is the other road, with a development team of your own or one you hire. You own the result and nobody takes a share, but you pay for the whole team before the first bet, it takes far longer, and every box in the diagram above is yours to build, certify and keep running. I'd only build if I already had the players and the volume, and a reason the licensed platforms couldn't do what I needed. For nearly everyone else, licensing comes first, and renting a whole book under your own name, a white label sportsbook, sits between that and a per-head package.
What I'd ask any provider
Who sets my prices, and can I change them? Can I see liability by event while the game is on? Who holds the players' money? What does the share apply to, exactly? What do I keep if I leave, the player accounts included? And where am I allowed to take players from? That last answer depends on where you are and where your players are, and a license in one place doesn't cover another.
There is no best sportsbook software in the abstract. There is the one that fits the book you are going to run, and you find out which one that is by making the provider show you the risk screens, not the home page.