How to open an online casino
Amongst the many ways to spend money on the internet, iGambling really stands out. Online gaming has always been one of the most profitable and attractive fields for business owners to pursue, even when lacking expertise in this industry. Majority of the users of the online gaming world, criticize a platform based on the number of games in store for the players. A platform should be able to deliver a wide selection of games which could vary from poker, roulette, blackjack amongst others. This would help to increase the number of customers using the platform. These games should also be user friendly and engaging.
Without a doubt, the profit from this industry indicates a high level of competition which further proves that the time to market is critical. It is also very proper to select the perfect software vendor, one that offers lower development cost and high return on investment. In order to open a profitable online casino that offers joy to the customers, it is important to pursue the right sequence of steps.
Stage 1. Setting up
Internet gambling is subject to licensing, so it is important to worry about choosing jurisdiction and securing a license. It typically takes a few months to a year to receive a gaming license; for example, it takes 6 months in Malta. The “White Label casino” program helps from excessive legal and banking issues but includes extra costs. The main concept of white label casinos means that you are basically leasing a casino from a third party. It has both the technical and operating resources already created for you, all that’s left is to focus on marketing, consumer retention and front-end branding. There is an agreement signed between both parties on the overall profit share. You’d still be paying some cash for initial setup.
You’re going to get a share of the overall profit, but you’re going to have to deliver some initial cash in the form of a setup charge.
Getting your gambling license
For businessmen in various jurisdictions, such as; the United States, UK, Spain and France. You need a gambling license; otherwise, you can’t present your casino as a legit one. It is difficult to acquire a gaming license nowadays since a gambling prohibition extends to online casinos. Many, thus, have the issue of how to start a casino legally? The alternative is to buy a license and register a server in the offshore territories of the countries where gambling is allowed, and the gambling license buying service is offered. The offshore industry is well represented in the geographical sense as this offshore sector covers Western countries and other parts of the world.
It is time to select an online casino software supplier as soon as all regulatory problems are investigated independently or concurrently. In addition to an enticing design and a collection of common games, a premium product must also provide a stable gaming network. The provider’s bundle must also provide daily app and game patches, hosting and technological assistance. Professional vendors often assume responsibility for the total technological support of the activity of the after-launch product. In terms of price, the product kit that contains all of the above components might be at the upper hand, but the financial commitments are worth it when you have a trusted partner ready to help you throughout the entire life cycle of the project. There are two major casino software types for iGambling:
- Gaming software: You offer gaming content to players, this includes a casino and other gambling platforms (like sportsbook)
- Gaming platform: A gaming platform that provides all the necessary options and features for the operation of the site
Where to begin when buying casino software
You ought to evaluate deals and companies first. Purchasing software for an online casino from a questionable middleman is a willfully high risk of getting an incomplete or “damaged” product. Before purchasing software for a casino, pay attention to the following characteristics:
Creating a System of payment
After acquiring a license, a secure payment option must be created to enable players to deposit and withdraw earnings easily. Doing this would attract new customers because not only is it fast, it is also convenient. Users without credit cards should also be put into consideration during the setup.
Below is a highlight of the percentage use of each of these payment methods
Creating a website
For a start-up Casino, designing a well structured and unique website would go a long way in enticing both new and existing customers. It creates a form of interaction between the platform and the players. Both a website and mobile application must be created. This would help to raise the business value undoubtedly. A website with an easy interface would be well appreciated by the target audience. Picture quality must be top-notch with various graphical icons that would be useful to the user. The website should also be devoid of complex features and redirecting pages that might make a user angry. Increasing the list of functions like a language change, push notifications, social media presence, and sponsored Ads would make the website stand out amongst competitors. This is one of the cheapest ways to spread the gospel of the platform.
Setting up your budget
When the regulatory, software and marketing expenses have been identified, it’s time to prepare the budget. The safest choice for start-up firms is to set the budget at least for the first year of service, while the budget for experienced companies joining this iGambling industry is meant to be long term. Since setting up the online casino platform, don’t prepare your budget, plan it before. If you are a start-up business, you need to realize that the expenses will be higher. You aim to win the confidence of the players from the start. There is still confidence in established land-based brands. Below is an estimated division of costs for the potential owner of the casino.
Step 2. Launch
The timeline for online casino launch depends both on the owner of the company and the software vendor. It typically takes up to 3 months for the provider to set up the program. It involves website design, platform and game configuration, custom configurations and potential individual functionality. The business owner can speed up the launch process by providing daily input on any questions that designers and programmers may have. Any problem may be addressed if it is mentioned in time. Setting up legal and financial infrastructure is a job that only the owner of the company can achieve. For the launch, the following must be ensured:
- Getting a gambling license
- Merchant banks and corporate bank account opening
- Creating agreement with payment system providers
Cost of player registration
For consumers to start playing on the platform, several profiles registration has to be set up. Creating a user profile can be done through:
- Email/ Google account
- Social media
Although this may seem like a far-fetched idea for a startup online casino, it is one of the best ways to promote the platform. Organizing monthly/yearly discounts would lure a good number of customers concurrently. Also creating discount codes and referrals to existing customers would be profitable to new players by increasing their chance of doubling the winnings.
Customer feedback and support
In cases of glitch or loss, players should be able to contact customer care 24/7. This would foster a good relationship between the users and also open the platform to more earnings.
Like every other business in the world today, there has to be a percentage from the budget set aside for maintenance. This enables the smooth running of the platform all through the business year. This would take about 30% of the budget.
The hiring of staff and Payment of salaries
Hiring a good team is one of the key factors in running a successful online gambling platform. The team of professionals includes programmers, sales managers, accountants, content managers, copywriters etc. For an online casino to run effectively, you need at least a staff number of 5–10 persons and a manager.
Monthly payment of staff is a fixed expenditure that would take 30% of the budget; the cost of payment depends on the region of interest.
Renting office space for the location of the server and full operation of the staff.
This ranges from bills incurred during business meetings with potential clients ( signing of contracts) and booking of flight tickets for staff members.
Starting an online casino is not an easy task as it requires a lot of risks and sacrifices to stand among competitors. Ensure that you do thorough research on the business before venturing into it. A certain level of commitment is mandatory for the success of the venture.
- What do you need to start an online casino?
To begin an online casino, you’ll need reliable software that satisfies all international quality standards—an online gambling license issued by one of the jurisdictions to operate your business.
2. Challenges of the gambling business
Gambling is booming on the internet, but it is subject to market conditions. Online gaming is fueled by consumer desire, which is overwhelmingly unmet. Online casinos and online poker rooms face particular obstacles related to online gaming oversight and affected by their pariah status. Government legislation aims to preserve integrity and protection, and cheaters expect to gain a ranking from a market with crippled legal redress. The demand is expressed by certain buyers who invest actual money in anticipation of winning a greater amount.
3. What if some of the gamblers end up winning too much?
Many online casinos placed caps on the player and daily bets that keep a casino from losing all profits. An online gambler can earn huge amounts of money, of course, but the chance is very slim.