All of the factors we've mentioned above can make a significant difference to the feasibility and day-to-day operation of your online casino so you should be sure to carry out thorough research before committing to a particular decision.
Also bear in mind that the licensing process itself can take a considerable amount of time, anywhere from two months to a year depending on your choice of location. In Malta, for instance, it usually takes six months for an application to be finalised and a license issued. The costs of licensing begin at the application stage where the majority of options come with a large advisory and legal bill attached. The amounts here can vary and will depend on your history and the complexity of your casino operation.
You'll then also need to factor in the cost of your equipment and other expenses such as web hosting. As with all of our points, you'll need to do extensive research as the cost variations you'll find are large. You'll also need to set up a company in the jurisdiction of the licensing authority. Options available here vary considerably. Some territories require at least one resident of the country to hold a position amongst the management, others require a set number of employees, and others still have no restrictions at all.
The key here is to make sure you fully understand, and comply, with all the requirements, as not doing so will see your license disappear and potentially leave you with nothing. Make sure you fully research the legal implications of each option you're considering.
You'll obviously need staff for the day-to-day running of your casino. Areas you'll need to consider include customer support staff, technical staff depending on your setup.
You'll also need to make a hefty initial banking deposit to cover any large wins as you can never be sure when these will occur and need to be covered at all times. Another operational concern that you'll need to deal with is that of security.
Depending on which software provider you go with for your online casino, much of the heavy lifting may already be taken care of, but you'll still be responsible for making sure financial and technical security systems and processes are in place and for monitoring possible threats. There's no getting around it, marketing your casino is essential. With the marketplace becoming ever more crowded, marketing is assuming an increasingly important role in terms of attracting a solid customer base.
One of the most popular marketing tactics in the industry is going down the affiliate marketing route. This is where affiliates market your casino on your behalf and receive a fee based on how many customers they can attract to your casino. How this fee is arranged varies considerably. Some pay a fee per new customer, but the general arrangement is a percentage of what revenue the new customer generates. These percentages can be quite high.
Affiliates use a variety of techniques to obtain new customers for your casino. The majority of them will employ a website and domain of their own that they use SEO techniques and other marketing solutions to promote. Using trackable ads and links, these sites then direct the customers to your site. Recruiting affiliates can be tricky but you'll see that most casinos have a link to their affiliate scheme listed prominently on the main page. The best affiliates are usually experienced players who understand the market, but you can also use specialty affiliate websites to recruit, or even attend conferences and recruit gambling aficionados that way.
Aside from the affiliate system, you will also need to market the casino yourself, via SEO, SEM and other online marketing techniques. This can be done in-house or via specialist companies that will promote your site for you. Be sure to fully research any third-party companies you're considering employing as some less than reputable outfits use underhand marketing techniques that can damage your brand over the long term.
If all this sounds far too expensive and involved, and for many it will be, you are probably wondering if there are any alternatives. The first is the so-called white label casino option. In this instance, the casino provider covers all aspects of the infrastructure, including licenses, software, payment processing and so on.
You simply pay them a fee for the casino itself and then an ongoing percentage of the profits. This is a great way to dip your toe into the online casino world, and is considerably cheaper than any other option out there.
Another alternative is running a BitCoin casino as these are not currently required to be licensed, though this is likely to change. You'll still face startup costs of course, but nothing like the levels required for a full online casino.
Setting up an online casino is far more involved than many think, and the level of cost can be frightening. However, for well-run, successful casinos the profits on offer more than justify the costs. For some people, the affiliate route will be the one to go down. For others, going down the white label route will represent a happy medium. As we've stressed throughout the article, carrying out extensive research is an essential first step towards setting up your own online casino.
We hope this article has pointed you in the right direction and given you some valuable resources you can lean on to make the right long-term decision. Check our list of Top Online Casinos. Introduction With the world of online gambling generating billions of dollars every year , there are some obvious attractions to starting your own online casino.
Try the Best Online Casinos. Here's a quick run-down of the main casino software providers: Payment Methods The next decision you face concerns payment infrastructure. Licensing For legal reasons, your casino needs to be licensed.
When it comes to making your decision, there are two general approaches you can take: A rules based approach: This leads to a lower entry outlaw but higher running costs. A principles based approach: This results in lowered day-to-day running costs at the expense of higher startup costs.
Operations You'll obviously need staff for the day-to-day running of your casino. Marketing There's no getting around it, marketing your casino is essential. Alternatives If all this sounds far too expensive and involved, and for many it will be, you are probably wondering if there are any alternatives.
Edit Article How to Start an Online Casino Many people want to open up their own online casino but they can't imagine actually going through all the steps to get one started. Choose an online provider. Before you start, you have to decide what casino software and games content you will be using. The software is going to run your gaming site and will be the backbone of your casino, helping you manage your entire operational activity, including account management, payment processing, fraud management, and marketing campaigns.
If the software is going to be your backbone, gaming content will be your face. Games are what will attract people to your casino and you should consider that as one of the main factors in deciding which supplier to choose.
There are two types of suppliers - ones that develop games and platforms themselves and ones that offer packages with gaming content of other suppliers B2B - business-to-business model.
Both have their own advantages. If you go with the company that develops games itself, you will probably have to pay lower fees and there will be a lot of flexibility in meeting your requirements. In case you decide to go with the B2B supplier, you can get games from multiple developers without the need to sign multiple contracts, but there will be larger fees to deal with.
Their award-winning games are considered as the top converting. If you can't include all three, your casino should feature games from at least one of them. If you choose to buy a complete solution from these guys you will end paying them a minimum of EUR in just one year. On the other hand, companies like EveryMatrix.
Aside from a wide variety of solutions, they offer games from up to 10 different developers, including the most popular ones. If the main factor of your decision is related to your budget and you want to minimize your long-term costs, you can go with CasinoWebScripts. They also offer a complete casino software solution as well as game customization or custom game development this means they can develop any game you want. If you choose to buy a complete solution you will end paying them around EUR and you can use their products for the next years.
They have over games available with free updates and lifetime support. Choose your business partners carefully and never do that in a rush. Request information and contract templates from at least ten suppliers so that you can compare them before the final verdict. Never be shy to ask questions you are interested in or might have concerned about. Obtain a Casino License. If you choose to go with a B2B supplier, you probably will be offered a sub-license that will allow you to freely operate legally without the need to obtain one yourself.
This would save you a lot of time and funds on your initial investment, but eventually, it is better to get your own license when your casino will start generating you serious money. In case there is no such option, obtaining your casino license must be your first step.
Without the casino license, you aren't allowed to have a casino running legally. Alternatively, you can start a BitCoin casino, which does not require a license. Decide in which country you will obtain your casino license, it does not have to be your current residence. If you get a license in Curacao or Costa Rica, you can accept players at your casino from non-regulated jurisdictions all over the world. Use a service like Slogold. Pay the fee to get your casino license and provide them with any other information that they require.
Choose Your Accepted Payment Methods. After you have your casino license you have to set up your payment options so that you can take deposits from players, payout prizes, and withdraw money from the casino back into your business.
Credit cards are the favorite method of payment around the internet, and by allowing credit cards at your casino you are going to improve the chances of getting customers. You will need a credit card processing service in order to verify they have enough money and to get the money sent to your company account. Shop around for affordable processing services, many large agencies offer these services at low rates.
When you have the casino up and running it is time to populate it with players who are going to make it into a profitable business. The only way that you are going to get anyone playing at your casino site is through casino marketing and it is important that you spend most of your time on this step of the venture if you want to be successful.
Decide on the countries that you want to target the most and set up local marketing campaigns. These can include television ads, magazine ads, radio ads, and search engine optimization that focuses on local cities within the country. Focus on delivering unique content and unique games that will make your casino stand out of the crowd. Find a development company and ask them to create a unique game exclusively for your casino.
CasinoWebScripts is one of the companies that offer such service.