It is not wondering that running an online casino business is one of the most profitable things in the world, especially in 2024. And if the right approach is applied to its development, this business will bring its fruits and give you hundreds or thousands of times more in return. However, it is not an easy task to start an online casino business from scratch and make it successful. It is highly recommended to consider different aspects before launching your online casino.
In this in-depth article, we will give you a general overview of the online gambling market, share the crucial aspects that should be considered to make the online gambling platform successive, and provide you with detailed data related to the expenses. But first thing first.
An online casino is a profitable business
Many people across the globe like to spend their time doing something enjoyable, and gambling is precisely this thing. This entertainment option allows people to try out different casino games, like online slots, roulette, poker, baccarat, and, meanwhile, make some money.
The global pandemic also impacted the development of the industry, especially in the online segment. In recent years, the total gross gaming revenue has reached incredible numbers, and it is only going up and up from year to year. So, do not underestimate the potential of the gambling business. Nevertheless, it is worth considering different aspects that will help you develop a profitable strategy and make your gambling business prosperous.
Things to consider before starting an online casino
No matter what, it is mandatory to do research, analyze the market, and consider different things that will make a clear picture of your online casino business. Thus, we have highlighted the most crucial aspects that should be considered.
Region
One of the essential things is to know where you will operate. As it is not surprising that gambling is prohibited in many countries, you need to come to this question carefully and thoughtfully because of the obvious reasons. So, it is crucial to sit down and research which countries you can operate in legally. And what is more, it would be better if you start your online casino business in the region or country where gambling is popular.
The picture below shows a global map indicating the countries where this exciting and prevalent business is either completely/partly legal or entirely prohibited.
Due to the legislation, you clearly see that it is not recommended to launch an online casino in the Middle East and East Asia countries. However, there are many options to choose from and make your gambling business profitable and prosperous.
Talking about trends, at the present moment, the following countries are in high demand:
- The US;
- Canada;
- The Netherlands;
- Spain;
- South Africa;
- India.
Some of these trendy countries may be extremely expensive in terms of marketing and brand promotion (the USA and Canada). In contrast, others are more affordable (South Africa and India). So, you can always choose what is the best pick for you.
License
After deciding in which region you want to start an online gambling establishment, it is necessary to move to the second (not less important) moment – licensing. Obtaining a gambling license is the most critical step to prepare for. And only approval from a reliable regulator will allow you to operate in this or that region/country legally. Before buying a gambling license, you should study this subject as much as possible.
- Countries that regulate their markets;
- Governments that regulate their markets and maintain a monopoly;
- Countries where gambling is prohibited;
- Countries that do not regulate their market.
The most popular gambling jurisdictions are the UK, Malta, Alderney, Isle of Man, Curacao, and Gibraltar. The main factors when choosing a license are its reputation, validity, and cost. So, make sure that you pick the right one.
Software
Even though you have considered the area of the further operation of your casino and the licensing aspect, it is essential to care about your potential customers (gambling enthusiasts).
Secondly, you need to take care of quality software. Considering proposals from foreign companies, it is necessary to collect information about general experience in this field of activity and then study feedback on the proposed product.
Be sure to pay attention to the catalog of games provided, clarify how long the integration process will take, and ensure that there are individual terms of cooperation, license, and qualified technical support.
You should not save on buying software for online casinos because only leading providers can guarantee uninterrupted operation and an unforgettable gambling experience for gamblers.
Content
It is no secret that gaming novelties attract much more visitors to online casinos, but only the best of them motivate players to come back again.
The site must have the most popular slots, poker, roulette, blackjack, bingo, and baccarat. Access to the demo version is crucial for those who want first to understand the game’s intricacies and later use the knowledge gained in paid games.
Practice shows that live casinos with real dealers are most popular. Due to the live broadcast, the effect of presence in an actual gambling establishment is achieved, and this only reinforces the excitement, allowing the player to be fully liberated. A pleasant addition to the player’s piggy bank will be a bookmaker – sports betting will help dilute existing game applications.
Payment methods
For casino customers to be able to top up their accounts and withdraw winnings in any convenient way, you should conclude an agreement with at least several payment systems, like Visa, Mastercard, PayPal, Skrill, etc. It is worth choosing the most actual ones, focusing on the region in which gambling activities will be carried out.
Website
And the last but not least moment to consider is the website of your online gambling establishment. You know the expression – clothes do not make the man. So, the same thing is applicable to the website. When players come to the website, the first thing they see is the actual design of the website, how well it is organized, and how correctly it operates.
If you do not pay enough attention to this moment and develop a visually-bad casino site, nobody will sign up because nobody likes visually bad things. And if your website is pleasant to the players’ eyes, has a well-organized structure, and is intuitively understandable. Players appreciate this effort and give their preferences to your website.
Thus, make sure that your casino’s website seems impressive and can catch the players’ attention at first sight.
How much does it cost to open an online casino?
All the services mentioned above cannot be used for free, and it is necessary to put much money into the online casino’s development, maintenance, and further promotion. So, we have divided the expenses into five major categories to clarify how much money you need to spend to start your online casino.
License
Understandably, it is impossible to operate in the market under legal circumstances without a reliable license from a reliable gambling jurisdiction. And it is not a cheap thing to get the needed one. In the table mentioned below, you will see the costs of some jurisdictions.
The UK Gambling Commission, the Curacao Gaming Control Board, Malta Gaming Authority can provide the most popular licenses. These three jurisdictions are top-rated, and if players see that this or that online gambling platform has been operating under one of these licenses, they are absolutely sure about the reliability of this place for their gambling purposes.
For sure, if you need to operate in some specific region, you need to choose the jurisdiction required and apply for the process of obtaining a license.
Software
Without software, your online casino website will be aimless and useless because all the profit comes from online casino games. Therefore, it is highly advisable to tie up partnership deals with as many software developers as possible. But, remember that it is necessary to pick the software providers with both a great online reputation in the market and an extensive gaming library.
You can also consider different packages that should include at least 400+ different gaming options, like online slots (one of the most demanding gamblers’ choices), live casino games (online poker, online blackjack, live roulette, online baccarat, etc.), some mini-games, and so on.
Usually, these packages can be costly, but the average price is between €150 000 and €200 000 (can be lower).
Website
All the casino games should be placed somewhere, and the website (a good one) is a thing that requires additional investments. To build and develop a stunning website that will impress potential gamblers, hiring professionals who can help you reach this goal is required.
On average, the cost of the website is approximately €3 000 per, and you need to know that the website is needed constant maintenance.
Of course, you can be greedy and save money while hiring an amateur who will make the website. However, there is no guarantee that this website will work flawlessly without bugs.
Stuff
You may also assume that every online casino can operate without a single person, but this assumption is wrong. And for the website, it is necessary to have at least 8 or 10 members. Among these members should be:
Support specialists who will be available around the clock and be able to answer the customers’ questions within the frame of the moment;
- Affiliate Managers who are going to lead potential gamblers to your website;
- Managers who will be responsible who players’ retention;
- IT specialists who will deal with all the technical issues related to the casino and the website.
To sum up all the costs of the hired specialists, the total number will be around €250 000 per year. For sure, this sum may vary depending on the specialists you are going to hire.
Marketing and promotion
After launching your online gambling platform, nobody is aware of it. And your essential task is to develop a great marketing strategy that is aimed to make your online casino well-known or at least recognizable. This part can be the most expensive one, and if you are ready for the high expenses and the same level of profit, you need to be ready to spend around €100 000 per month. Bear in mind this amount of money may vary depending on the region you are operating in.
For instance, the cheapest countries for launching advertising campaigns are India and South Africa, while the USA, Canada, and the European countries may cost you double or triple times more.
Since the gambling business is trendy and highly competitive, it is necessary to approach the promotion of the resource as carefully as possible.
Positioning. It is vital to determine your audience, analyze the market situation competently, determine your goals and build a strategy.
Advertising campaign. To announce a new casino to potential customers, you can use several channels, mainly social media (Facebook, TikTok), affiliate programs, affiliates, and SEO promotion.
Customer retention campaign. Bonuses, promotional offers, and referral programs are used to increase customer loyalty. It is also essential that the casino has around-the-clock support service and the most understandable section of frequently asked questions.
Ideally, it is necessary to involve professionals in working on marketing strategy if it is your own, formed, and proven team of analysts and marketers.
Reserve fund
Before you launch your online casino, you need to be sure that you have money to pay for the players in case of their winnings. Most payment companies require a sum from €100 000 to €500 000 that should be reserved for such unpredictable winnings as jackpots. For start-up online casinos, it is possible to find an offer starting from 20 000 euros to 50 000.
It is a necessary measure because a certain sum of money should be in the casino’s bank, which will serve as a guarantee that players will not be deceived.
Total expenses
So, after showing you some inevitable expenses for the launch of your online casino, it is the right moment to sum up everything and calculate the total cost of the services. Firstly, we indicate the minimum price and after that the average cost.
The minimum expenses:
| License: | €36 000 (the minimum sum depends on the chosen jurisdiction and may vary); |
| Software: | €100 000; |
| Website: | €1 500; |
| Stuff: | €150 000; |
| Marketing and promotion: | €50 000; |
| Reserve fund: | €20 000; |
| In total: | €357 500. |
The average expenses:
| License: | €75 000 (also depending on the chosen jurisdiction); |
| Software: | €175 000; |
| Website: | €3 000: |
| Stuff: | €250 000; |
| Marketing and promotion: | €100 000; |
| Reserve fund: | €250 000; |
| In total: | €753 000. |
So, you have a clear picture of how much it costs to start an online casino. However, you need to know that you will not get the profit from the first month after you have launched your online casino.
Funding
You see that starting an online casino is not a cheap task, and most of the time, it is challenging to find funding for this idea. However, there are always ways to make a dream come true. Some offshore companies can help you handle this issue and provide you with findings. Just do your research.
Conclusion
Gambling is one of the most profitable fields, particularly online casinos. To open your gambling establishment online, it is necessary to consider the peculiarities of this area and be attentive to details and legislation.
Whether the casino will pay back the money invested in it and whether it will bring additional income to the owner depends on how competently the launch is made. To do this, it is necessary to calculate the budget, including the costs of the license, and consider all the nuances of software purchase and the amounts needed for the development of the product at the initial stages. It will be essential to plan the budget for the next year and do it before the site’s launch. It should be taken into account that novice entrepreneurs will have more costs (promotion, license, audience acquisition from scratch) than experienced market players.
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