Can new online casinos survive the COVID-19 climate?

Last year has been tough for many people and businesses. The COVID-19 pandemic has been a tough challenge for many countries all over the world and sadly, many people lost their jobs and many businesses had to temporarily close. Some even had to permanently stop their operations and just didn’t survive the pandemic.

The gambling industry wasn’t excused. It is one of the industries that have been greatly affected by the pandemic. Up until today, there are still land casinos that remain closed because of COVID restrictions. Las Vegas that has always been the go-to of many gamblers is still not back to how it was before the health crisis as casinos and hotels here are still not in full operations.

Land casinos are the ones that are greatly affected by COVID-19. It is a different story, however, for online casinos. Despite the pandemic, online casinos were able to thrive and even prosper. New online casinos were also given the chance to get more customers during COVID-19.

How COVID-19 impacted the online gambling sector

Online gambling is mainly divided into two sectors: online casinos and sportsbooks. Online sportsbooks are the ones that are negatively impacted by the pandemic. This is because many sports events had to get either postponed or delayed. There was a point in 2020 when there wasn’t much sport to wager on that bookies turned to non-sports events wagering. It was only in June last year when major sports events like the English Premier League came back on and people started to finally have something great to wager on.

Meanwhile, online casinos somehow benefited from the pandemic. Many places have implemented lockdown and quarantine protocols last year. Because of this, many people were stuck at home and have tried to find new activities that would keep them entertained.

Many online casinos did report a sudden rise in their traffics when lockdowns started in March of last year. However, even if protocols are becoming less strict today, online casinos continue to thrive. It is still expected that the iGaming sector will continue to rise in the next few years.

Is it wise to get into the business of online casinos?

Since numbers are already showing that online casino gaming is getting bigger, it’s perfectly understandable why there are now people who are considering starting their online casinos. However, it’s not that simple and it could be very expensive to run a casino.

Based on research, for a person to be able to launch a legal online casino site, a person would need around a million to two million US dollars. This amount already includes the licensing fees, branding, and website budget. This amount could easily go up depending on what your goal is for your casino.

Is it wise to get into this business? There is no concrete answer as it will also depend on your capabilities. However, it’s worth saying that it could be a good time if you know how to make your way to the mainstream.

The pandemic is not yet over and land casinos are still off-limits to many gamblers. Online casinos are still benefiting from the pandemic and if you start an online casino business today, it may be a good time if you know what you’re doing.

What to consider when starting your online casino

There are many things to consider when starting any kind of business. If you choose to be in the gambling industry, here are some of the factors worth pointing out.

Licensing

It should be your priority to make sure that your business is legitimate and part of this is applying for an online casino license. There are now a few jurisdictions that issue such licenses like Curacao, Gibraltar, Malta, and the United Kingdom. Each jurisdiction has different requirements and licensing fees so be sure to check those out.

Casino software

A gambling website won’t be effective without casino software. This is what will ensure that you have a good selection of games to offer to your players. Some of the most popular casino software providers are NetEnt, Evolution Gaming, and Playtech. Typically, a good software package would cost around 200,000 to 300,000 US dollars.

Marketing

This is something that has to be done right because marketing is what would bring you, customers. You need to know who your audience is and how to sell your services to them. Many new casinos would resort to giving away generous promos and bonuses to new customers and this is quite an effective way to get more traffic.