The online betting market keeps on growing, but it’s not always an upward line. For reasons very well known in most cases, bookies pull the plug. They close their doors for the better. Although once they gloriously entertained bettors online, some even offering brick and mortar locations, they disappear and go out of business. Before we explore the common reasons why online betting sites go out of business, you can first take a look at the current best betting sites below. Scroll further down below for more!
We sincerely hope that these bookies will stay online for a long time. The community likes them, the regulators like them, and we’ve been happy with their performance so far. Then again, even if they do go off, we will find decent and worthy replacements, like we always have!
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Poor Cashflow Management – High Betting Odds
Recently established betting sites are at risk of going insolvent for one reason only, too high betting odds. To quickly attract new customers and get off the ground, new betting sites attempt to lure in bettors with high odds, and they are pretty loud about it. There’s nothing wrong with high odds, but offering them if you are still just a fledgeling doesn’t sound about right.
Sooner or later, bettors get into a winning spree, and because of the slight edge the bookie gives to them, the operator can’t manage to pay out all the winnings. However, in recent times, this is becoming less likely, because most bookies, including new and well-established ones, get the odds from the same providers. Then again, you never know when a big win is going to land, and how many of those big wins are going to follow.
Unbalanced Betting Bonuses and Promotions
Unlike the previous one, this is way more common and is still happening. Much like offering high betting odds, new operators try to attract new customers by providing betting promotions better than the ones currently on the market. Enhanced odds, free bets, welcome bonuses unmatched by any other, and raffles that draw you in and make you want to bet with them.
However, it’s not just the bonuses and promotions that are too generous, but the bonus terms as well. There should be a balance between the playthrough or wagering requirements, and how generous a betting promotion is. Otherwise, this imbalance can result in two things. One, the bookmaker goes insolvent because customers are getting too much, and the operator can’t deliver what they promised, and two, well, this one is worse. The worse thing that can happen is a bookie offering promotions that have bonus terms that are too tight, such as low cashout limits, high playthrough requirements, too many restricted sports or high minimum deposit thresholds. All of these are perceived as drawbacks, which they are.
On the other hand, the well-established betting sites do not have to worry about this. They not only have significant communities, but they can deliver pretty much everything they promise. To have this fate, they have to make a chain of mistakes or one very bad one. Even then, their legal teams are well-prepared to find the emergency exit door!
Overwhelming Betting Competition
Finding balance is the tricky part. The betting market adheres to all economic laws and principles, for example, supply and demand. Survival of the fittest translates to the survival of the bookmakers that offer the best product, best promotions and best service overall. Many constraints and variables can push a betting site too far, which eventually results in closed doors. New betting sites come forth and take their place. The new bookmakers have to endure the most as if they get a somewhat decent market share, the giants surround them, and they have to introduce innovative measures to barely break even.
Some bookmakers with an international presence decide to leave specific markets, so they can pool their resources in a small number of specifically targeted markets only, or even just one market! Sometimes it’s sad to see an innovative betting site going out of business, just because they couldn’t persevere long enough to reach a critical point and go viral amongst sports bettors. The few innovators that manage to come on top usually focus on one or a few sports.
Changing Gambling and Betting Regulation
Not one betting site, not a few bookmakers, but entire markets can cease to exist. The online betting operators without portfolios, meaning without an international presence are erased from the online betting community in an instant. Change in regulation is the one fair reason that nobody can argue against. No matter how skilled or well-performing the bookie is, if the law changes, that’s the end.
We saw something similar happening in Australia with the gaming industry, we saw it happening in many European markets as well, one rule does not fit all, that’s for sure. Although these examples are extreme, others switch from an unregulated market to a regulated one, where bookies have to obtain licenses. To make matters worse for them, there are only a limited number of betting licenses available. Not all is bad for the average bettor, as this means heightened security and more protection for the customer. Some examples include Sweden, Switzerland, Spain and Italy.
This is probably the one reason that we like to back, as supporters of responsible and fair betting.
Rebranding and Mergers
It’s a fluid community, fluid market, and unexpected, and sometimes expected changes of this kind could happen. For reasons known only to the operators’ management departments, bookmakers can change their image, their brand to the very core. This is not limited to the logo of the company but goes across company culture, name of the company, and sometimes changing the senior management. Of course, changes are expected following such revamps.
The second one is usually done with synergy in mind. Colossal brands like bet365 and William Hill are too big for the little guy. Joining forces brings them one step closer to a bigger market share and getting closer to entering the hall of the untouchables. Bigger is better, and bettors like better! It’s one step closer to being the best, at least in some areas.
Frauds and Scams
Fortunately, the betting community can get very vocal about this sort of stuff. Operators that prey on their customers’ passion for betting deserve no attention whatsoever. If anyone disagrees, we might give them some exposure on pages such as this one, or one that showcases betting sites as not recommended!
With the advent of the internet and creating platforms where bettors can share the experience, and sites like Sportsbetting24.com, where we try to advise and recommend operators, bettors are in a safer betting market. To stay safe, and avoid falling victim to rogue online bookmakers, stick to what community members have to say. You are already taking a risk when you bet, so don’t take any chances with the choice of the bookmaker. We are doing our best to recommend the best, but we’re also keeping an eye on those with predatory ideas.
