The gambling industry is the direction that many entrepreneurs willing to start their online business take.
In this article, we will analyze the difficulties beginning operators may face, advantages and drawbacks of having an online gambling business, the starting capital size, as well as pitfalls and other issues related to the opening of online casinos.
Is it worthy to start a gambling business?
Starting a gambling business is similar to opening any other project as entrepreneurs face different risks. Moreover, even ambitious businessmen may have a fear of failure that will prevent them from getting into the industry. In order to achieve success in the online casino sphere and start a profitable project, it is important to have patience, persistence, and starting capital. Slotegrator experts suggest analyzing all the pros and cons of online casino business before making a final decision.
|Wide audience of players from different parts of the world||Online gambling prohibition in several countries|
|High profits||Preparation stage: website development, license acquisition, and other steps require a lot of time and investments|
|The new business registration process is easy compared to land-based casinos licensing||Strict requirements of gaming licensing bodies for obtaining a license|
|The relatively small number of employees that will decrease the operators’ expenses|
|No need in renting a special office for the project launch|
|Online casino games don’t require any special technical maintenance compared to land-based slot machines|
|Online casino or betting platform business is available for anybody. It is only crucial to follow the law and have a required starting capital|
How to start a gambling project?
If you have decided to start your gambling project, here are the basic stages of its development and launch.
Stage 1. Preparation
The first stage is the preparation for the launch which includes the following steps:
1. Competitor analysis
The competitor analysis helps operators to evaluate the situation on the gambling market and learn about the current leaders in the sphere. Also, it is a great opportunity to discover existing offers, which helps to develop new services and products that your business will offer. The main aim of online casino operators is to meet all the needs and requirements of players by developing the website with all the necessary functions. Therefore, it is crucial to take a responsible approach while analyzing competitors’ brands.
2. Expenses: understanding the budget
The creation of any business always requires big investments, and it refers to gambling projects as well, so entrepreneurs should have the starting capital ready. For example, the software and license alone will cost a significant amount of money. The experts from Slotegrator recommend to create a budget plan for the year and be ready for increases in expenses.
Here is the approximate ratio of investments necessary for the launch of online gambling project:
- new company registration: 3–7%
- licensing: 10–30%
- software: 25–35%
- employees recruitment: 10–20%
- additional expenses: 5–15%
While creating a budget plan for the first year of operation, it is important to include:
- license renewal: 1–10%
- software support: 10%
- marketing services: 50%
3. Legal entity
Among the other first steps to make, there is a need to register the legal entity in the jurisdiction where an operator plans to obtain a license. The process includes company registration, opening a bank account, and signing contracts with providers.
The high-quality software helps to both attract new players and retain existing users, therefore, it is important to choose a software provider carefully. The platform’s quality influences the brand’s reputation in the future, the level of players’ interest, and the number of visits. The high price doesn’t guarantee the best offer, as value for money is the most important factor.
The professional software should:
- be fully functional and have high quality;
- support several languages;
- have a fast speed;
- be available on mobile.
The successful gambling business always complies with the law, so all beginning operators should obtain a special gambling business license. It protects the players’ rights and makes the online casino trustworthy. The licenses are issued in offshore jurisdictions and European countries.
The most popular regulators that issue gambling licenses are Curacao, Directorate of Offshore Gaming, and Kahnawake Gaming Commission. The license cost in European countries is higher than in offshore jurisdictions. For instance, a gambling license in Austria will cost $350 thousand, while offshore countries issue licenses for $10 - 30 thousand. The reason for such a big difference is the prestige and status.
The process of license acquisition lasts from 1 month (Antigua and Barbuda) to half a year (Malta).
6. Website development (design, platform)
The website look is the face of the company. The gambling platform should be visually attractive, provide all the necessary functions, have convenient navigation, simple registration form, high security level, etc. These factors influence the popularity of your website among players. Make it better than competitors, introduce unique and outstanding features to become the choice of every player.
Today, the online casino software developers offer a wide choice of platforms each having advantages and drawbacks. The most cost-effective solution for online casino launch is the White Label model which has become popular in the 1990s.
With this solution, operators don’t have to obtain a gambling license on their own as they get a ready-to-launch platform. The website is being developed according to the operator’s needs.
7. Domain name
After getting a license for gambling business, an operator should buy a domain name for a website. Being memorized is very important, so the website’s name should be short, easy to read, and simple so that players will remember it. While buying a domain name, operators should take into account the target audience and keywords.
8. Games integration
The wide choice of games is what attracts players to online casino websites, so we recommend to integrate the most popular and traditional games. It will increase the trust among experienced gamblers and will help to create a positive image of the beginning company while it is still not well-known. It is also crucial to make sure all the games are accessible via smartphones, as it significantly increases the audience.
9. Payment systems integration
Payment systems help online casino players to make deposits and withdraw winnings. We should note that it is essential to integrate as many payment systems as possible because of the wide audience. Slotegrator recommends choosing only reliable payment services. Moneygrator solution from Slotegrator is the right choice for gambling platforms operators as it allows integrating over 20 payment systems that provide more than 100 ways of depositing and withdrawing money.
Stage 2. Project launch
While all the steps of the first stage are completed, it is time for a project launch.
The length of the website launching process depends on the software provider and operator. To make the procedure faster, operators should provide developers, coders, and designers fast feedback.
Gambling project promotion: marketing strategies for online casinos
A well-developed marketing strategy is key to the success of a new gambling project. The low number of visits and no traffic will lead the operator to bankruptcy. However, there are marketing tools that will help to avoid this: SMM and SEO-optimization, an active advertising campaign, email newsletters, and various bonus programs.
Your main goal is to create an image of a trustworthy business. So, cutting the budget and saving money on website development, software, and advertising will not lead to positive results.
Stage 3. Reliability and safety
Gambling resources must guarantee a high level of security as they can be vulnerable to attacks. In order to avoid any possible fraud and illegal activities, operators should ensure that their gambling resources are fully protected, and all suspicious actions are monitored.
How to attract players?
The gambling industry sees a huge competition, so online gambling platforms do their best to attract new players and retain the existing ones. Therefore, all operators try to create the most attractive conditions, offer a wide range of games, various bonus systems, progressive jackpots, etc.
The interface of the website is also important since simplicity, functionality, and convenience are valued by every user. We recommend starting with promotional offers on significant dates or during special events.
Starting a licensed and reliable online casino or betting company is not as simple as it may seem at first glance. The preparation stage and the launch of the project are just the first steps of the long-term process that requires a lot of time and financial investments. Do not try to save on opening a gambling business as the high competition makes it hard to reach the leading positions without doing the best.