How to Create Your Own Online Casino: Step-by-Step Guide
Statistics in the online casino sector reveal some of the most lucrative and promising indicators. This industry quickly adapts to changes and crises, substantially benefiting owners. The profitability and stability of this sector are significant factors that motivate entrepreneurs to establish their ventures in this area. At GBC Time, we offer a comprehensive guide to help you understand how to launch an online casino and build a successful business, considering the unique characteristics of the gambling industry.
Analyze the iGaming market on a global scale
According to H2 Gambling Capital, a business intelligence company that analyzes the gambling market, the gambling industry’s revenue is predicted to grow significantly shortly. Over the next five years, the figure will reach $117bn. For comparison, in 2018, the total revenue of gambling operators was $58bn.
According to Netshopisp, the European online gambling market will exceed $258bn by 2028. Europe and North America have a competitive advantage over other continents due to innovative online gambling technologies fueling the market’s continued growth.
According to the Statista platform, the current volume of the global iGaming industry, taking into account the covid 2020, looks like this:
New markets are emerging on the global gambling market map with enviable frequency. More and more countries are recognizing the industry’s economic potential, and the availability of gambling technology in everyday life opens up space for attracting customers.
But we must remember that the world economy is constantly caught up in crises and force majeure. If we discuss the new economic realities, online businesses, including Internet casinos, are in the good position. Although virtual gambling establishments faced new challenges, they managed to cope successfully with them thanks to the industry’s flexibility and adaptability. The resilience and variability of online casinos allow business owners to minimize financial losses and always have alternative ways of further growth and revenue recovery, even in a severe crisis.
Before launching a new online casino, it’s crucial to thoroughly understand the industry’s strengths, weaknesses, opportunities, and challenges. A comprehensive sector analysis should be the initial step in establishing online gambling sites in any country.
Select the target market
This is one of the essential preliminary stages in developing online casino sites or online casino apps businesses, and it will shape many further aspects of the company. It is worth paying attention to several important points simultaneously within this stage.
Learn about the legislation
Each jurisdiction has its unique gaming legal regulations. In some countries, even different regions may have varying rules for the esports and gambling sector. A market where gambling sites are legal and regulated is known as a “white market.” Conversely, if gambling websites are banned, it is referred to as a “black market.” There are also “grey markets,” where the government either overlooks the industry or enforces inconsistent laws that make regulating gambling difficult. A typical grey market example is when a jurisdiction does not license gambling operators but also doesn’t prevent citizens from accessing casino offshore sites.
Of course, white markets provide the most solid ground for work. They create a healthy and reliable environment where the online casino business feels comfortable and has all the prerequisites for dynamic development.
When studying the laws of possible jurisdictions to work in, it is also worth paying attention to the restrictions on gambling games online advertising. There are several regions in which gambling game advertising is prohibited or severely restricted. For example, the ban on gambling advertising is established by law in Moldova, Lithuania, and Armenia. Promoting virtual casinos and brand development will be maximally hampered in such conditions.
Learn the region gamblers` preferences
Identifying and evaluating the target audience is a vital step that deserves careful analysis. Proper segmentation will further orient the business towards the customer, address their needs, and generate high customer demand.
Analyzing the potential audience involves answering several key questions that will shape the overall business strategy:
- What is the typical age range of the players?
- What is the income level of the target audience?
- How much are players comfortable spending on gambling without impacting their personal or family finances?
- Are there any cultural preferences or trends in gambling?
- Which casino games are the most favored in the region, and what drives their popularity?
- What payment methods are most commonly used and accessible to the local population?
It is a short but not complete list of questions that will allow you to get a portrait of the target audience and learn its preferences for gambling entertainment.
Analyze the competition
The top online casinos industry is highly competitive, making it challenging to stand out. Creating something entirely new isn’t always necessary or practical. Success in the online gambling real money sector often comes from applying reliable, efficient, and player-focused strategies rather than the most innovative ones. Only such solutions can remain competitive in a specific market.
Explore all financial nuances
A thorough financial assessment is crucial for estimating the budget required to operate in a jurisdiction. Key expenses include:
· License acquisition costs
· Business registration fees
· Taxes and other charges
Each jurisdiction has its procedures and regulations for establishing and licensing a business. Therefore, it is important to evaluate multiple countries and select the one that offers the most favorable conditions.
Develop a business plan
Planning is the key to avoiding most of the missteps in further work. That is why developing an online gambling business plan is a mandatory stage of launching any business project, and the online casino industry is no exception. Moreover, obtaining a gambling license or attracting additional funding from investors is impossible without a business plan.
A business plan for launching an online casino consists of such vital sections:
| Business Plan Section | Description |
| Purpose and mission | The business’s goals should be clearly stated on paper. The project owner must understand what they will bring to the industry, how their company will differ from competitors, and what marketing approaches will allow them to reach the desired level of profitability. |
| Market analysis | The business plan should not just give a detailed analysis of the chosen jurisdiction but also show an understanding of the target audience. It should reflect the need to launch an online casino in a specific format that can close the existing gaps in the industry. Pricing and marketing policies are also worth mentioning in this section. |
| Organizational structure | The company’s structure allows you to assign responsibilities to all participants in business processes and understand who is responsible for specific results. A recruitment strategy should also be added to this section. |
| Management system | The business format must be clearly defined: corporation, limited liability company, partnership, or other options. The business plan should record information about asset holders and investors. |
| Revenue projections | The project’s projected profitability is a critical factor for investors. By calculating the projected profit during the first three years of the project, you can get confirmation of the feasibility of launching an online casino in the chosen jurisdiction and support your arguments with concrete figures. |
| Financing | In this section, you need to collect all the financial components of the business: available start-up capital, required amount of investment, annual profit, payback period, and cash flow statement. |
Calculate the necessary investments to launch an online casino
Objectively good online casino functioning requires a reasonably significant investment at the launch stage and supporting the platform’s further development.
Before launching an online casino, it is necessary to allocate money for:
- Founding a company
- Purchase a license
- Installation of gambling software
- Recruitment of staff
- Marketing activities
- Other operating expenses
Once the online casino is launched, money must be allocated for:
- License fees and payments
- Payments to gambling software suppliers
- Payment for the services of gambling providers
- Implementation of marketing strategy
- Payment of labor costs to staff
- Other operating expenses
The percentage of expenses before the launch of an online casino and after the start of its operation are distributed as follows:
Notably, the most significant expense is implementing a comprehensive marketing strategy in the preliminary period before the gambling site’s launch and directly during its operation.
Develop the business structure
The jurisdiction will largely determine the company’s corporate structure, as it will need to be registered in the region where the gambling license is acquired. The decision to form a partnership, corporation, or limited liability company will depend on the specific legal regulations of that country.
Due to its popularity and flexibility, a limited liability company (LLC) is often the preferred choice for online casinos. Within this structure, shareholders’ responsibility is distributed according to their shares in the authorized capital. Accordingly, if the company is in debt, the shareholders can only recover up to the authorized capital.
Acquire a license
Running an online casino necessitates obtaining a license. To enter specific markets, a local permit is often required. While an international online gaming license may be acknowledged globally, most jurisdictions will only consider a business legal once it secures a domestic gaming permit. An online gambling license allows operators to collaborate seamlessly with banks and financial institutions. This license demonstrates the company’s credibility and accountability within the industry. The same principle applies when partnering with game content providers, software vendors, and payment services – reputable companies work only with licensed online casinos.
Malta, Curacao, Gibraltar, Maine, and Alderney are the most popular jurisdictions for obtaining casino licenses to operate online.
Choose a jurisdiction
The right choice of jurisdiction determines how quickly an operator can obtain an online gaming license and what financial conditions the operator will face later on.
When choosing an authority to legalize a business, it is worth paying attention to:
1. The company`s experience level. Legal new casinos operators should apply to jurisdictions offering the most straightforward possible license process. In turn, experienced in the gambling sphere, entrepreneurs can already be guided by the status of the license on the world stage and get involved in the complex process of obtaining it.
2. Available online slots and other gaming content. Some licenses allow gamblers to access all types of gambling services. In contrast, others require a separate permit to supply casino games based on random number generators, betting, poker, fantasy sports, etc.
3. Cost of the license. In addition to the basic license fee, the additional costs of business registration, taxes, and fees must be considered.
Go through the licensing process
The licensing procedure in each jurisdiction is different. In some countries, the process is as bureaucratic and complicated as possible, while in others, it is simplified and expedited. The time frame can range from a few weeks, such as in Curaçao, to several months, such as in Malta.
Recruit staff
Qualified and professional staff is the basis for the long-term and successful operation of the project. The Internet casinos industry is proliferating, involving staff from many related fields.
The essential operation of casino sites can be provided by such personnel:
| Department | Required Personnel |
| Marketing department | brand managerSEO and SMM-specialistscopywritere-mail marketeraffiliate managerdesignerdigital marketing specialist |
| Player support service | manageroperatorsmanagers for VIP clients |
| Anti-fraud department | compliance managerKnow-Your-Customer manageranti-money laundering manager |
| Finance Department | Chief Financial Officerpayroll managerAccounts Payable Manager |
| Technical Department | Technical DirectorIT supportdevelopers (CSS, PHP, Java, HTML5)project managers |
| Analytics department | analysts to assess markets, player behavior, trends, performance, etc. |
Select software
Choosing a software supplier for a real casino online is a highly responsible process that determines the further level of gambling companies: the variability of the set of functions, availability of settings, speed of troubleshooting, frequency of updates, etc.
When selecting the software, it is necessary to analyze it by such parameters:
1. Platform capabilities. At the same time, the servers should provide stable operation of the licensed gambling sites and high loading speeds. If the resource slows down, players will not waste time on such a site and will choose another, faster platform. It is also worth considering third-party software and additional modules: CRM system, marketing tools, reporting system, security modules, etc.
2. Orientation on players and their experience. The platform should engage the player from the first seconds, guide him through registration to deposit, and allow him to play quickly and unobtrusively. The interface should be intuitive and as simple as possible. Popular requests should group game content. The platform’s functionality should meet the user’s needs and include the possibility of personalization.
3. Visual component. During the first few seconds, the user who gets on the online gambling platforms subconsciously conducts external scanning. If the player is unsatisfied with the visuals, he will not move on to the functionality. Colors and palettes, the size of banners, and the location of buttons play a significant role in further promoting the platform.
4. Security. Online casinos are often exposed to hacker attacks. For reliable protection, the site needs quality software and reliable systems to track possible risks.
A software package that encompasses all these features may come with a high initial cost, but it proves valuable over time. It’s akin to having a reliable partner that helps sustain and grow the business. Conversely, opting for a less expensive solution at the start could result in higher expenses down the road.
Complete turnkey solutions are also available to start an online casino from scratch. Such a solution includes game content, integrated payment systems, a bonus module, affiliate services, and custom branding. The operator gets a ready-to-launch gambling platform to attract players and interact with the iGaming community. Moreover, the platform also receives 24/7 tech support and regular updates.
Provide a variety of gaming content
The platform must provide a colossal variety of online slot machines for real money to cater to all gambling enthusiasts. Analyzing the target audience will help select the best slot games for online casinos according to gamblers` peculiarities and preferences.
According to the platform InovecsGaming, different types of online gambling worldwide are rapidly gaining popularity, with a predicted increase in the share of online casino entertainment:
You should not limit yourself to just paid or free slot machines to play at your site. It is worth considering games with live dealers, such as live blackjack or another, which are at the peak of popularity nowadays. The circle of fans of card and tabletop games like live roulette is also vast. Moreover, gamblers who favor specific games still occasionally switch to other entertainment: poker, bingo, and online betting games from time to time. The platform must also provide an opportunity to find new gaming experiences.
The operator’s other tasks include active cooperation with content providers, including signing contracts and negotiating the most favorable terms of cooperation. To simplify this process, it is possible to cooperate with an aggregator, which will provide all the necessary content through a single integration and regularly update the portfolio.
Integrate different payment systems
The convenience and speed of depositing money and the player’s account largely determine the activity of the online casino audience. The fastest possible withdrawal of winnings is another crucial step to trusting relationships with customers and building a positive reputation.
The more the casino offers deposit and withdrawal options, and with them – fiat currencies and cryptocurrencies, the higher the platform’s status in the players’ eyes. Determining which currencies and financial channels are most popular in the region will also help study the target market. The need for international payment channels to meet global customers’ demands is also worth considering. Also, adding no deposit casino options for new players to test the platform is a good decision.
Currently, bank cards are the most favored payment method in many parts of the world. However, other popular methods exist: e-wallets, payment systems, etc. Online casinos allow customers to withdraw and deposit funds via mobile phones using SMS. The main idea is to cover as many market segments as possible.
Develop a marketing strategy
This stage determines whether the online casino can stand out from the competition and stay ahead of them. Providing maximum information about the brand will attract more customers and consequently increase profits. Developing a well-thought-out marketing plan and advertising strategy is crucial. Campaigns for Internet or mobile casino should cover all promotional channels available and authorized by the law of a particular jurisdiction.
Create an Affiliate Marketing System
To expand the audience of an online casino, you need affiliates who can drive traffic to the site. These include opinion influencers, bloggers, streamers, affiliate sites, and web developers. To protect yourself from dishonest partners, you should establish a precise model of remuneration for the player’s action: registration on the site, deposit, etc.
Create a comprehensive bonus system
Bonuses are a key element in motivating players to sign up and stay engaged with a platform. A successful bonus casino system is marked by its variety, offering players a wide range of rewards. It’s important to present a mix of incentives such as welcome bonuses, no-deposit offers, reload bonuses, cashback rewards, loyalty programs, and more.
Equally crucial is the development of loyalty and VIP programs. A tailored approach to long-term customers helps maintain their interest and makes them feel valued by the operator.
The types of bonuses you choose should align with your business objectives, whether it’s to attract new users, retain existing ones, boost engagement, or achieve all of these goals.
Organize tournaments
Well-designed tournaments with high rewards attract players’ attention and engage them in an entertaining experience. Activities such as free poker tournaments or slot events offer a limited number of spins or game funds for users to compete for a particular prize. The prize can be money, spins, internal casino currency, or even material gifts such as equipment, smartphones, etc., which can be given as prizes.
Implement gamification experience
Gamification of user experience is a great way to increase audience engagement. Users can start playing when they open and register at the online casino. After going through the registration bonus no deposit they can earn points or internal club currency for being active, playing specific slots, unlocking achievements, and engaging in other platform events.
Be sure to have good support service
A smooth, fast, responsive customer support service largely determines players’ attitudes toward the online casino. Even in the case of disputes or technical failures, support representatives’ willingness to help and active participation in solving the problem allows you to further retain players on the platform, increase the casino’s status in the eyes of the audience, and improve the brand’s reputation.
Support managers need to communicate in languages that are convenient for customers. Therefore, if the business expands its geographical scope, you should invite the appropriate managers to the team on time.
Particular attention should be paid to servicing the requests of VIP clients. Such gamblers should work with professional managers who can solve even the most non-standard user requests without unnecessary delay.
Conclusion
Launching an online casino is a complex, lengthy, and expensive process. Developing a business structure and obtaining at least an offshore gaming license are the basic steps to overcome when opening your gambling platform. But this does not mean opening a gambling business alone is practically impossible. To do so, you should have a good grasp of the details and an understanding of the marketing and legal aspects of the work. For those who want to avoid most of the difficulties associated with opening an online casino, there is always the option to opt for turnkey or White Label betting platform or casino platform development, which makes launching a website more accessible and faster.
Read More: Which Online Gambling License is Best?
