Although the market is competitive, there is still space in the sector for starting a casino business online. With good planning, management, and ensuring you have a House Edge, you can almost guarantee profits providing you can attract customers.
The online gaming industry is a growth industry. In 2011 the market was worth around $25 billion. In 2018 the market grew to be worth $50 billion. The online gambling sector comprises $40 billion of the 2018 market. So the potential to get rich from starting a casino business is there.
The essentials of starting a casino business
You can either start your own business or become a casino affiliate. Either way, you need these essentials:
- Capital but not as much as you might think.
- Latest cutting edge technology. Players won’t play unless they are sure it is safe. You must invest in this technology and upgrade it when necessary.
- The House Edge to ensure profits.
- Amazing marketing. All businesses need this to create a solid brand and attract customers. In this competitive space, it is extremely important.
- Any business requires commitment. This has to be a fulltime endeavour.
- Gaming licences. You’ll need to get gaming licences in your chosen markets. So if you want to target British players, you’ll need a British gambling license.
You must become familiar with the online gambling market before starting your own business. Look at what competitors are doing in terms of how they present their games, the kind of games they are offering, and how they showcase offers and bonuses. It will give you a good indicator of what you need to offer to attract customers.
Once you are familiar with the casino market, start to crunch numbers. You don’t want any nasty surprises with your bottom line.
A good approach to get your version of online slots on Bestcasino.com is to find a niche market. Although online gaming has been legal in most western world countries for over ten years, this is not the case for every country in the world. Spain and Latin American countries are new to the gig. This represents good markets for you to leverage.
It is possible to get up and running quickly with online gambling by leasing the software necessary for a business. Top software providers will charge between €5,000 and €50,000 to licence their products.
The top providers pay this to present their games, and you’ll have to do the same. You should try and feature as many games as you can afford. The more variety you can offer your players, the more money you will make and the better the reputation of your brand.
You can opt for lesser-known developers who may offer cheaper alternatives. Do your homework here, however, as you need products that comply with standards and laws. No player is going to play unless what you offer is legit.
Hosting the site
Registering a gambling site is a little different from a conventional business site. As you have probably guessed they incur higher costs. It takes a few days to register the site as well. Malta is one of the most popular places to host a site. The application fee and annual fee comes it at just above €10,000.
Alternatives are available, so it is worth shopping around for the best location. Pay attention to taxes, and it is probably a good idea to appoint an accountant to help with this.
Invest in good infrastructure and engineers
It is important your site is up 24/7. Gamers want to play on-demand, and if your site is down, they’ll go elsewhere. The competition is intense, and in some ways, it’s a buyers’ market. Make sure the infrastructure and your network engineers are the best you can afford.
Marketing your casino successfully is mission-critical. To get your brand above the maelstrom of competition will take skill, a little a bit of luck, digital marketing expertise, and an eye for leveraging a market. Like your network engineers hire the best you can afford and give them a good advertising budget.
The House Edge
The House Edge is another mission-critical factor in running a successful online casino. This is the percentage of winnings you keep from each game. So for example, blackjack has an edge of less than 1% while some other games the House Edge may be as much as 25%.
With clever marketing and sound accountancy, you can adjust the House Edge to attract players.
Put your time in promotions
Once your business is launched, you will spend most of your time marketing it. Promotions attract new players and coming up with ingenious ones will make your offering more appealing.
Consider getting players is your number one priority. If you can do this, then the potential to get rich is there. If you do it well, this will happen a lot sooner than you thought.