The gambling industry is among the most desirable areas to do business. This drives many aspiring entrepreneurs to open up new online casinos and sports betting sites.
What kind of specific challenges will ambitious startups have to face towards achieving the goal? What are the pros and cons of the online gambling business? What is the amount of upfront investment?
We will cover these and many other urgent issues in this material for your benefit.
To start or not to start own gambling business: that is the question.
Gambling business, like any other independent project, carries a high risk for any entrepreneur. However, most of the aspiration is put on the spot and daunted at the first hurdle.
To succeed in the gambling industry and to run a revenue-generating project, you need to have a great deal of patience, significant seed capital and sticking power to keep working on the project. But before you make a final decision, the specialists of Slotegrator recommend weighing up all the pros and cons of the gambling business.
|Broad audience of users due to the inclusiveness of the World Wide Web||The existing ban on online gambling in many countries|
|High profit||Project development, official license, and other formalities take much time and sustainable seed funding.|
|Easier registration of new business as opposed to licensing of land-based gambling houses||A new project must meet all of the requirements of a particular gambling commission to obtain official approval.|
|Minimal staff significantly cuts costs.|
|No need to rent an office to run the project|
|Online gambling does not require any special maintenance, unlike land-based gambling machines.|
|Anybody can start an online casino or online sports bookie. But what counts more is to follow the law and to have necessary start-up capital.|
How do I start my gambling project?
If you do decide to open your gambling project, it is necessary to learn the main stages of its creation and follow-up development.
STEP 1. Before you start the project
The first step is to prepare the website for 'grand opening' that includes the following steps:
1. Analysis of Competitors
Analysis of competitors will let the operator take a sober look at the current situation in the gambling market and to find out the foremost leaders in the industry. In the bargain, it is an excellent opportunity to understand what products and services are not yet available in the market so that you can further offer them on your site.
The primary goal of each gambling business owner is to meet all the needs and wishes of the client by developing a fully-functional web resource. Therefore, you should carefully review the competing brands.
2. Business Budgeting
Starting an independent business always comes with a hefty starting investment, and the gambling business is no exception. It is essential for a future owner of the gambling project to have considerable financial wealth. For example, software and license will cost a substantial sum. The Slotegrator's experts encourage the newcomer gambling vendors to plan the budget for the year ahead, taking into account a possibility to exceed it, not vice versa.
We offer you a rough estimate as a percentage required to start gambling project:
- registration of new company: 3-7%
- business licensing: 10-30%
- purchase of software: 25-35%
- staffing: 10-20%
- extra costs: 5-15%
During the first year of operation, the budget needs to include the cost of:
- license renewal: 1-10%
- technical support: 10%
- marketing service: 50%
3. Registration of the Legal Entity
Another precise question that has to be addressed is the registration of a gambling project in the licensing country. This involves registering a new gaming company, opening a bank account and making distribution agreements with software providers.
The certified software will engage not only new players but also retain the existing ones. You should take very great care while selecting the software providers. After all, your brand's goodwill, as well as the level of player interest and frequency of the site visits, depends on the quality of the software you offer. High prices are not always saying about a high level of professionalism and competence. The most important is the ratio of price and quality.
Official software must meet the following criteria:
- to be as functional, reliable and of high quality;
- to support multiple foreign languages;
- to have a high-speed performance;
- to offer a mobile version.
To conduct online gambling activities legally, a new businessperson needs to obtain a license from the regulatory authority. The permit aims at protecting the consumer rights and demonstrates the legal operation of the gambling company. You can get it in one of the offshore jurisdictions or the EU countries. The most famous are the regulators of Curacao, Directorate of Offshore Gaming and Kahnawake Gaming Commission
Mind that the cost of a license issued in the EU is higher than in offshore. While an Austrian entrepreneur pays a minimum of 350 000 USD for such a permit, an offshore license varies from 10 000 to 30 000 USD. The reason is simple: the prestige and the status. The standard licensing process takes from one month (Antigua and Barbuda) to six months (Malta).
6. Website Development (design, platform)
The look of the site is your brand's image because it visually appeals to all visitors. The online resource should have an outstanding, engaging and functional interface, as well as easy navigation, a simple registration form, a high level of security, etc. Mainly these factors influence the popularity of your site and the level of players interest. Strive to stand out and to do better than your competitors do to become the choice of all gamblers.
To date, software developers for online casinos offer a plethora of platforms, each having its own merits. A budget-friendly and straightforward option of opening own online casino is a scheme from the 90s, called White Label. The solution offers a launch of gaming project under the brand of famous provider, which does not require a separate license. The website “subsidiary” is individually designed under the demands of the new operator.
7. Domain Purchase
Once you're officially entitled to run own online gambling business, it is time to acquire a domain name for your website. Remember, your goal is to survive in the player's memory, so it is vital that the title of the web page is short, readable and memorable to the user. To buy a domain name for an online casino or sports betting resource, you need carefully look through your target audience and compile relevant keywords.
8. Games Integration
A wide range of games especially drives avid gamblers to visit a particular iGaming resource. To attract visitors, we recommend first to integrate the most popular and known games. This will build trust with experienced players and assure them of the reliability of, yet unknown, company. It is essential that the software is compatible with different mobile devices. This will rump up your target audience.
9. Payment Systems
You need to integrate a particular payment system to conduct transactions within the online casino or bookmaker. We do not offer to embed one, two or three separate payment services as the gambling audience is very diverse. Instead, we advise you to choose only trusted services.
Moneygrator powered by the Slotegrator company is an excellent solution designed for online casino operators. With its help, you can integrate over 20 payment systems supporting more than 100 payment options into your online casino.
STEP 2. Project Launch
And now the time has finally come! After going through all the preliminary stages, you can focus on launching your project.
As a rule, the website kickoff depends on both operator and software provider. However, the vendor can expedite this process by providing developers and designers with rapid feedback.
- Gambling Project Promotion – Online Casino Marketing
A well-thought marketing strategy is a key to success of new gambling project. Low visits and zero traffic will move the casino owner into bankruptcy. To avoid this, you should use the following online marketing tools: SMM and SEO optimisation, active advertising campaign, newsletters and various incentive and bonus programs.
Your primary goal is to market a recent gambling project as a credible company. There is no reason for you to cut corners on the website design, promotion or high-quality software.
STEP 3. Reliability and Security
There is a high level of fraud on the game resources. Therefore, the safety and security of the site must be approached responsibly. To avoid fraudsters, we recommend all operators to ensure full protection of their gaming resources. Online casino security system uncovers and prevents all suspicious activity on the site.
How to engage visitors to the gambling site?
The competition in the gambling industry is very severe. Online casinos are fighting for each new user and, at the same time, are trying to retain the existing customers. That is why the owners of gambling resources make every possible effort to achieve their goals. In particular, they create the most attractive conditions, offer a wide range of games, provide different bonuses, progressive jackpots, etc.
Another critical factor is that the site interface has to be friendly, functional and convenient for every Internet user. Tempting promotional offers dedicated to some significant dates or events will be a great start to attract new visitors to your online gambling site.
To start a licensed, independent online casino or betting resource is not as easy as one might imagine. The design phase and the start of the project are insanely time and money consuming processes. It's worth sparing neither time nor money on your gambling project development as the industry is highly competitive. And only the most enterprising brands rise to the fore. Slotegrator team wishes good luck to all gambling startupers!