Online gambling has always been considered one of the most profitable business areas. In order for the casino to become successful – profitable for the owner and interesting for the players, a number of requirements should be met and attention should be paid to details.
Training
a) Legal issues
Online gambling requires licensing, so it is important to choose a licensee and obtain a license. There are two ways to solve this issue – offshore states and EU countries. Each has its own advantages and disadvantages – budget, time, reputation. Usually the whole procedure for obtaining a permit takes from a couple of months to a year, for example, in Malta you will need 6 months.
The next step is the registration of a legal entity. This procedure includes registering a gaming company, opening a bank account and signing an agreement with payment system providers.
An alternative is the scheme of launching a casino according to the White Label model, i.e. supply of software together with a license and financial infrastructure under the auspices of the software provider. This scheme saves you time and does not require additional financial costs for licensing.
b) Software
After resolving all legal issues, it’s time to choose a professional online casino software provider. During the search, it is extremely important to correlate the price and quality of the product. In addition, you should pay attention to the attractive design and a set of popular games. A quality product includes many components for a successful business:
- Call management system
- Player management system
- Bonus and incentive system
- Game administration system
- Payment system
- Notification mechanism
- Support for various administrators
- Affiliate management system
- Safety system
- Email support
Professional software and game updates, hosting support and technical support are also part of the standard package. Professional suppliers are always responsible for full technical support after product launch.
The cost of such a software package will be quite high, but we must say that the game is worth the candle, because. you will get a responsible partner who will provide you with technical support at any time. Remember that the miser pays twice.
c) Marketing planning
An effective marketing strategy is key to the success of an online casino. At this stage, it is strategically correct to conduct a rigorous analysis of competitors. First of all, it will give you the opportunity to look at the whole picture of the market, learn the leaders and their strategies. Thus, knowing the rules of the game, you will be able to offer something new and unusual, which customers will not be able to refuse. Plan your marketing moves using the experience of the best.
If a company planning to launch an online casino owns a real casino, then they need to enlist the support of their existing customers. To attract them, you can use a nice bonus system.
The next thing to do is to contact marketing companies or individual entrepreneurs who specialize in online gambling on the Internet. These are search engine optimization agencies, media resources with casino reviews and others. This will help to understand the service offering and select the right partners before launching the website.
At this stage, you also need to think over the bonus system, affiliate marketing strategy and check the quality of the selected software.
d) Budget
Once you have decided on the costs for the license, software, and marketing services, you need to plan your budget. The best solution for young companies is to plan the budget for at least a year in advance, while for mature companies, plan for as long as possible. Don’t plan your budget before launching the site, it’s important to do it before. If you are a young company, you should remember that your costs will be higher. Your goal is to gain the trust of the players from the very beginning. The owners of real casinos, unlike you, have already won their players.
Below we provide a rough cost estimate that will help future online casino owners develop a detailed business plan.
- Costs before the launch of the casino Costs during 1 year of operation
- Company registration 3-7%
- License 10-30%
- Software 25-35%
- Recruitment 10-20%
- Up to market value 15-20%
- Other costs 5-15% Operating expenses of the company 5%
- License fees 1-10%
- Software support 10%
- Game providers 5%
- Marketing services 50%
- Staff 20-30%
At the preparatory stage, the largest part of the budget should be allocated to the installation of software in order to provide future users with a quality product. And after the launch, it is extremely important to direct half of the budget to marketing and advertising of the casino.