There are many individuals that dream of starting an online casino. After all, the gambling industry can present many lucrative opportunities.
However, the perception is that the steps to getting started are too difficult to undertake. Casinos are seen to be risky, complicated to run and full of pitfalls.
In this article I will explain that the process is not as hard as many would believe. Moreover I will provide six step guide to getting started in the casino and gambling industry.
By the end of this article you should have a clear idea of what is required to start an online casino.
Step #1 - Choose What Casino Games To Offer
The first consideration to make is what type of casino games the platform should offer.
The casino games are going to be the front end of the business. They will be what attracts users to the casino so will be a major influence on what provider and software to use.
In order for a casino platform to have an edge in the market it may be necessary to opt for unique or niche targeted games. However, a casino that is aiming to reach the market as a whole will need to offer many of the standard games on offer to maximise reach.
Deciding on what games to offer will have a significant bearing on Step #2....
Step #2 - Choose a Casino Software Provider
how much does it cost to start an online casinoThe gambling software is the backbone of an online casino.
The entire casino's operations will be managed by the software. This will include:
Ensuring that the casino software can support heavy graphics, video playback, etc are also important considerations.
There are two kinds of casino software provider:
A further consideration is how much does it cost to start an online casino. A casino entrepreneur must deiced whether to rent the software by way of a monthly fee or make a one time payment for access to the source code. The second option will provide full access and complete control over data.
The Top Three Game Developers
Playtech, NetEntertainment and Micro Gaming cover around 60% of the market for casino products. They are known as being leaders in the casino market with premium and award winning games.
Any casino provider looking to compete in the market should offer games from at least one of these providers.
That said, they don't come cheap. So when evaluating the cost to start an online casino consider the following:
Each of these developers has a minimum charge of EUR 10,000 per month plus a 15% cut of the casino's royalties.
An all round solution from one of these will cost a minimum of EUR 120,000 per year.
Other Casino Games Providers
There are, of course, other options for casino games providers. BetSoft, EveryMatrix, 1ClickGames and Finnplay offer packages of casino games from up to 10 different suppliers.
If finance is an issue a further option to cut down on costs over the long term is to look into CasinoWebScripts. They offers a complete gambling software solution along with game customisation and development.
Together with this, the pricing policy on offer allows for a casino brand to purchase games without sharing royalties. A complete solution from CasinoWebScripts will cost around EUR100,000 but the license will be available for an unlimited time.
Helpful Tip - Choosing a casino platform provider takes careful consideration. Requesting information from a wide range of providers will provide a good overview of the market and allow for a well informed decision to be made.
Step #3 - Get a Casino License
Without a casino license it is illegal for an online casino to operate.
At some point every online casino will need to have it's own license. However, to keep costs down a B2B Casino platform supplier will often provide a sub license.
This means that the online casino will be able to operate legally without the need to obtain their own casino license. Another option to cut down on costs at the beginning is to open a BitCoin casino, as this would not require a casino license.
How to get an online casino license will vary across different jurisdictions. For instance Costa Rica or Curacao provide a very cheap option (around EUR20,000 per year). With a license from one of these two countries an online casino can legally accept gamblers from a large number of non regulated countries world wide.
Other jurisdictions are much more expensive. The UK or Malta, for instance, can cost as much as EUR150,000 per year.
Step #4 - Choose Accepted Casino Payment Methods.
With a casino license at the ready the next stage is to set up a variety of casino payment methods. This will allow the online casino to accept deposits from players, administer payouts and prizes and manage withdrawals
Credit cards are the preferred payment method in the gambling industry. So a processor that accepts credit card payments and can verify whether or not a player has access to sufficient funds is paramount.
Helpful Tip- It's well worth shopping around for suitable payment options but a casino games provider should always make sure that they have the preferred payment methods of choice for the target market.
Step #5 - How to Market an Online Casino
Once an online casino is up and running, fully licensed and with games at the ready it is time to start doing business.
Attracting players is what will determine success. The only way to do this is through marketing an online casino. The more time spent on casino marketing campaigns the more players will be attracted, so it is advisable to spend the most time on this.
Below is a list of a few fundamentals that should help define a successful online casino marketing plan:
Step #6 - How to Deal With The Challenges
An online casino can bring many additional challenges that don't arise in most other online businesses.
Below is a shortlist of potential areas to watch out for that can harm casinos of all sizes: