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It’s no secret that the online gaming industry is booming at an incredible pace. Especially if we talk about the “lockdown year”, what we call 2020, has proved online games to be one of the greatest means of entertainment. More than ever, people started playing various online games while enjoying online gambling benefits.
A worldwide online gambling industry is forecasted to rise at a CAGR of 11.94%, during 2020 - 2025.
Seeing this market scenario, we can say that the iGaming and gaming market has endless opportunities in 2021 and beyond, for entrepreneurs and businesses worldwide.
If you want to get into the gaming industry, an online casino is one of the exciting opportunities you can consider for immense success. With the existing, massive audience count, you can ensure substantial growth with your online casino.
However, like other industries, there is no shortcut to success in the online gambling industry. You have to follow a thorough, step-by-step online casino business plan to establish a successful online casino in 2021 and make the most out of it. But how can you do that with little or no knowledge of an online casino?
In this guide, we aim to assist business enthusiasts like you to start an online casino with a proper sequential procedure.
List of topics we are going to cover in this guide:
How Much Will it Cost to Start an Online Casino?
If you are a complete newbie to the casino and gaming, you might want to start with the basic information. The online casino, also known as Internet or Virtual casino is an online, prolific form of brick and mortar casino. The game allows players to play and place bets on casino games through the Internet. Unlike land-based casinos, online casinos offer a bit higher percentages of odds and payback.
Online casinos are mainly divided into two categories, depending on the type of platform they use: Download-only and web-based casinos. Download-only casinos require users to download the software to play and place bets on games. Whereas, web-based or no-download casinos are websites where players can play games without downloading the casino software on their PC.
Traditional online casinos used to have only one of the two software options. But with the
technological advancement, an online casino can now include both platforms.
A general myth is that online casinos make money when players lose money or by scamming people. However, this is not the case. Online casinos use smart strategies to earn money, which is of course, all businesses do.
The most popular strategies include offering free cash to entice new players and keep them hooked for a long time. Also, online casinos make a good profit through commissions and house-edge. Overall, an online casino makes a considerable amount of money, which is enough to keep running your business for years, successfully.
Now that you have a basic idea about the online casino business and its profit, let’s help you understand how to kick-start your own.
1. Market Research
Thorough market research is the most important and first step towards starting any business. It can build a sturdy foundation for your online casino business and prepare you for the potential weaknesses and threats that may arise as the business grows.
In the market research stage, you have to identify your target audiences and their geographical locations. Also, analyze the latest online casino trends, including the popular casino games, latest features, and requirements of your target users. This market research will give you a competitive edge and help you thrive in the new environment.
After identifying your target audience, market scenarios, iGaming trends, and competitors, your next move should be to prepare a proper business plan. Having a detailed online casino plan in place will streamline your further processes and help you make quick decisions. When preparing a business plan, you need to consider the below aspects:
Decide if you want to use only casino software or sportsbook or also want to integrate a casino management software. As you are starting from scratch, it is better to go with basic casino software. Once your business is in the growing stage, you can consider integrating advanced features or management software.
When planning a budget, consider overall aspects including license, software development, website development, launch, and marketing. Try to plan a budget for the entire business year so that you can understand the flow of profit and loss easily. Note that, you have to spend more in the beginning, to build a loyal user base and provide them with an exceptional gaming experience.
Based on your entire market and competitor research, decide what type of gambling content you want to offer to your target audience. Whether you want to include only popular games like poker, slots, blackjack, and bingo or other mediocre games as well. Players will judge your casino business based on the gaming content you offer, so choose it wisely. To attract maximum customers, it is advisable to include diversified gaming content.
3. Legal Issues and Licensing
Compared to other ventures, online casinos require you to comply with several regulatory requirements and face a few challenges. The biggest challenge is to get an online gambling license. The difficulty, budget, and time of obtaining a license may vary depending on your country or location of operation. Choose the jurisdiction wisely by considering its reputation, the price of the license, and the license duration.
You can either consider offshore countries or the European Union countries to get the license. Or you can also consider one of the popular gaming jurisdictions like Alderney, Malta, Curacao, Gibraltar, and the Isle of Man.
Once you decide the jurisdiction, the next step is registering a legal entity that is a gaming company, following opening a bank account, and signing a contract with payment system providers. This entire process ensures the completion of entire legal and financial infrastructure.
If you find this process hectic or time-consuming, you can consider the alternative way that is buying a white label online casino software. This means you lease software from one of the online casino software providers, along with the license and financial infrastructure. You can then run the online casino under your business name. Though this is the quickest and easiest way to launch your online casino, you may have to pay an additional amount.
No matter which licensing option you choose, think from the overall perspectives such as budget, and your software requirement.
4.Choosing a Casino Software Provider
Once you think you have completed or can meet all the legalities, your next step is to search for one of the best casino game app development.
Getting the best-quality software is quite essential to start and operate an online casino business successfully. Thus, make sure you partner with a reliable software provider or software development company. Below we have mentioned the qualities of a reliable provider that you need to consider during your search:
Besides the casino software provider, pay attention to the software they are providing. You have three options when looking for casino software:
You can lease a ready-to-use software along with the gambling license from the provider.
You get a ready-use software, but need to operate it under your own license.
If you have a gambling license and have unique requirements for an online casino, consider a custom software development service. A reliable casino software development company will help you build bespoke software based on your specifications.
No matter which option you choose, ensure to check the quality, features, price, and functionality before you make a final payment. Below we have listed some essential features that quality software should offer.
Key Feature of the Quality Casino Software
The software package offering all the above features and functionalities may seem costly. However, investing in such an option is worthy as it will give you a competitive edge and help you reap enormous benefits. You will get excellent returns for your overall investment. Choosing a cheaper option might lead to increased expenses in the future, despite getting fewer outcomes.
Apart from a quality software, a responsive website is essential to establish an online casino business. A well-designed and SEO-friendly website helps you attract and retain customers and build a powerful presence for your online casino.
Make sure you develop a high-quality website that highlights visual information of landing pages and increases your brand value considerably. Right from the navigation usability, UI/UX, to front-end integration with the database, pay close attention to every detail. If you have an existing website, but couldn’t attract enough users, consider redesigning it with the help of expert casino website designers.
Now, you are all set to announce the launch of your online casino business. Like other previous steps, you need to be careful and put a lot of effort into launching your online casino. Identify or choose the most favorable time to launch the online casino to get maximum attention.
7. Run a Digital Marketing and Promotion Campaign
As said earlier, the iGaming industry is prospering at a great pace and eventually increasing the competition. Therefore, having feature-rich and well-designed software is not enough to beat the competition and grow your business. You need to set-up and execute powerful digital marketing strategies to promote your online casino, attract new customers, and retain the existing players. Below are the most effective marketing campaigns and strategies you must consider for a successful online casino business:
It is important to announce the launch of your online casino through different social media platforms and advertisement means. This will create curiosity and excitement amongst potential users and help you get a good number of users right after the launch.
After your launch your online casino you must look for experienced SEO professionals to help you with search engine rankings and increasing the traffic. Effective on-page and off-page SEO tactics can enhance the presence of your online casino on search engines and help attract relevant traffic to it. You can also consider paid ads, banners, and content marketing to promote your casino.
The best way to attract new users and keep them hooked with your online casino is to offer them some existing loyalty programs. For instance, you can offer to sign up bonuses to the players right after they join your casino. You can offer deposit bonuses when players decide to deposit a certain amount. Many sportsbooks also offer free money regardless of any deposit by users. Such bonus programs keep users coming back to your casino, which eventually increases your revenue.
To be on the top of your marketing and promotion game, it is advisable to reach out to a renowned digital marketing agency, or SEO agency.
The cost of launching an online casino completely depends on your requirements and choices. For example, the white label software may cost you higher than the custom development, which makes a big difference in the overall cost. Also, the total cost will depend on different factors including website design, software development, pre-launch expenses, digital marketing campaigns, and so on. Though we can’t tell you the exact cost, here we have mentioned a step-by-step estimation of the total cost you need to spend on your online casino venture.
Obtain the Gambling License
$30,000 and $300,000
Up to $500,000
Building a Casino Website
$1000 and $5000
$25,000 and $200,000
Promotion and Marketing
$20,000 and $100,000
Every successful venture, be it online casino or offline, requires you to have thorough market knowledge and follow a detailed business process. From the website design to casino app development, launching, marketing, and promotions, you need to be careful and make wise decisions at every stage. Thus, it is wise to look for expert assistance. We at Betfoc, assist entrepreneurs and startups like you to establish a successful online casino by providing cutting-edge solutions and service Reach out to our professionals and start working on your online casino dream.