As one of the most lucrative and exciting industries to jump into, online gambling sees its fair share of business enthusiasts wanting to settle in. Regardless of whether you’ve had previous experience or not, there are specific steps to be taken toward starting an online casino. As attention to detail is a necessity, we’re happy to write out the in-depth process so that you don’t miss anything along the way.
- Taking care of the legal side of things
As you may have already guessed, gambling is regulated by law hence you need to have a valid license to be able to operate. Depending on where you choose to operate, you might opt for a European Union-issued license or an offshore one. As to which one is better – both have pros and cons in terms of issuing time, cost, and reputation.
After you’re done choosing your jurisdiction, you have to register a legal entity – a gambling company, open a bank account, and partner with payment system providers (PSP). If that seems like a bit too much of a hassle, you could always opt for a white-label solution. Essentially, you’ll be able to “rent” software together with a license and financial infrastructure directly from a software provider.
- Software
Now that we’ve gone through what to expect in regard to legal issues, you have to pick out your online casino software provider. Although a pretty site and a portfolio of well-known games might be key selling points, you should also look for reliability. So, features like an anti-fraud system, player management system, and game management system are only a couple of things to keep in mind. Other important features include:
- CMS
- Bonus and promotions management
- Retention email system
- Payment system management
- Cashier system
- Affiliate management system and others
A good thing to consider is whether the provider does frequent software and game updates, and how much can you rely on their technical support. In order to keep the transparency, as good as an investment these features are, they do raise the overall cost of the service. Nevertheless, a large initial investment serves for peace of mind and avoidance of other unexpected costs in the future.
- Market research
When starting an online casino, as with every other industry, understating the market you operate in is an essential part of building your business. First off, carefully observe your competitors. This will give you an idea of who is their buyer persona, what type of advertising strategies they use, what their ROI look like, and how they grow their brand. Benchmarking your own standards according to the industry’s already existing ones is a good strategy to begin with. It lets you safely enter the market before you redefine your plan of action according to your needs and goals.
If you’ve already started your gambling business as a brick-and-mortar casino and want to migrate to an online one, you should offer attractive bonuses to entice existing customers to play at your online casino, increasing loyalty and respect for the site. However, be sure to differentiate between both types of businesses as what worked with a land-based casino might not flatter your way of work in an online one, and vice versa.
In terms of advertising, consider reaching out to marketing agencies or freelancers that have experience working for other casinos (online or not). They can help you with SEO campaigns, email marketing, online directories management, social media management, affiliate marketing, and others. Doing this will help you build an online audience before you even launch your online casino.
- Budgeting
We’ve reached the final part of the preparations. Once you’ve defined the approximate legal, software, and marketing expenses, you should define your budget. As a starting company, it’s advisable to plan only for a year ahead when budgeting, as opposed to bigger casinos that plan for as long as they could. Initially, your biggest expenses should concern your software setup, followed by marketing and promotion. It’s important to have a defined budget before you launch your casino. You should expect some costs to be higher than expected as a “new kid on the block” that is still building their client base.
We’ve now covered what you need to consider when starting your online casino. Check out our other helpful articles – what is iGaming, what makes a great casino platform, and a comparison between a white label solution and a standalone casino.
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Press contact:
Marina Marinova
PR Specialist
