Before starting an online casino take time to study the online software providers that exist. Determined to give their customers the best software solutions, they have support structures that give the best experience to entrepreneurs. They provide the casino with an identity. Software is essential for starting a business in the online casino and gaming industry. As soon as you choose the country, get registered and start waiting for official producers regarding licensing, you need to begin searching for online casino providers in order to get reliable and useful software for your newly generated casino platform.
The world is in a constant change where the population is increasing significantly. If you can acquire access to a bigger audience, your business will become more profitable. Online casino games are one of these types of businesses. It is unbelievably profitable if you are good at attracting people with essential marketing techniques. However, starting a casino business from scratch comes with some hardships. There are a bunch of laws, regulations for casinos, and starting it requires effort in an extended period. If you want to find an answer to the 'how to start an online casino' question, you should take into account three things, namely, money, time, and perseverance.
The online casino industry became one of the profitable business industries in the world, with its rising consumers and revenues. According to the statistics from Statista for the years 2009-2020, the figures for online casino incomes skyrocketed. During the 12 years, the market revenue rose 3-fold, from 20 to 60 billion in US dollars. You can compare this fast-growing business to a few industries. Therefore, it attracts more entrepreneurs to invest in this market. Demographic changes in population also affected the numbers of online casino players. They transcended ground-based casinos because of its convenience, and easy to reach function.
To start an online casino you'll need reliable software that meets all international quality standards and your personal requirements, a hosting solution with needed configuration, and an online gambling license issued by one of the jurisdictions to legally operate your business. Once you've picked your jurisdiction, it's time to incorporate an online casino license company. When you start the process of how to start an online casino, the company incorporation part is perhaps one of the most important. Your corporate structure will determine the rate of tax you pay and it will ‘hold' your online gaming license.
Finding out how to start an online casino portal, requires to sharpen your customer satisfaction and marketing skills, which will enable you to earn profit within a short period. The ones who would like to pursue his or her will to create an outstanding online casino should put dedication with cutting edge technologies, marketing, and customer tools. If you want to move on to learn how to start an online casino business, keep an eye on the following steps:
Research is the backbone to find out how to start an online casino
Learning and knowing information can make you immune to the odds of life that has been debated by pundits since ancient times. Business is a vital part of life, which demands constant follow-ups, research, etc. Before shelling out money for realizing your ideas, you need to figure out the amount of money that is required to start an online casino business, which also requires to know how to obtain a license, and so on. Moreover, technology is improved every year; therefore, your game portal should also involve innovation.
Researching the market is helpful for newcomers who want to know how to start an online casino. It can navigate them to find target customers, available competitors in the market, their weak spots, possible risks, etc. Sometimes allocating money for a wrong target audience can affect your incentives. Moreover, having detailed information about competitors in the market will allow you to find out how and when they can be a menace to your business. You can also learn useful information by searching the past of the competitors in the market. Also, having an idea about the competition will help you to find unique ways to gain customer loyalty, make discounts, attract new customers, etc.
The Consequences of Not Conducting a Research
Not doing research can take your money, time, and energy. Some people may get lucky without proper research, but the majority of the entrepreneurs fail. You should ask the questions of why customers will most likely play in my online casino, or is there enough room for my new ideas? The market, technology, and products are changing exponentially; therefore, you need to hook up with the ongoing process. Researching will benefit you to understand the continuing operation and foresee future possibilities of the online casino business.
Earning money is an essential part of your business, but you need to think about the needs of the people too. People should need your online casino game because of the new features that your portal offers. If you do not consider these things, starting an online casino will face predicaments. You can research on your own, but if you need some advice from the professionals, you can find consultancy companies to help you to get the required information.
Variety of Online Casinos
If you look at the market, you will find that different online casinos are popular in the world. They offer different games worldwide and make a profit from their business, their reputation, and advanced technology with a spectrum of games attract billions of dollars each year. Such online casinos are Bet365, Unibet, Betfair, etc. which made billions of dollars fortune. Bet365 alone made $1.5 billion in 2015, which is a clear portrayal of the benefits of the online gaming industry.
Lastly, having some idea by researching how much money is needed is a crucial step. Because if you have a low budget, then you may end up in the middle of the road without proceeding to take additional measures and not be able to start an online casino. You will need money to get a license, for marketing, and for buying software packages, which is pretty much expensive. Also, taking into account salary payments that can be huge among of money. Therefore, you will need to do deep research to ascertain how to start an online casino.
Legalization and license process to start an online casino
Getting a license can be a complicated process, depending on where you live. Before investing to create an online casino business, you need to research the location. This process is essential for the people who are in search of how to start an online casino. Some countries have strict rules against the casino industry, which makes it hard to obtain a license. However, others have 'casino jurisdiction,' which is the most popular in the world. For instance, countries such as Malta, the United Kingdom, or locations such as the Isle of Man, Gibraltar can be an excellent destination to get a license and to start an online casino.
Countries are different depending on their legal procedures. Some states do not allow gambling, whereas others may create a monopoly in the casino market. Moreover, some countries may have open jurisdiction, which makes it easier to get a license. Countries that I stated above provides this opportunity for the online casino business.
Furthermore, there are several jurisdictions where you can get your online gambling license. Choosing a domain depends on reputation, time, and the fee which is available in some European countries, or offshore jurisdictions. After opening a bank account, choosing a payment system, etc., the legal and financial registration of an online casino business can be completed.
Choosing jurisdiction for a license should comprise these units:
- Requirements for getting a permit
- Costs and fees for it
- Period of the procedure
Getting a grant to start an online casino can take several months or even a year. Therefore, you need to pay attention to time management if you want to open it as soon as possible. You can also get assistance from other companies to fulfill documentation to acquire a license. Moreover, you can evade all these documentation processes by working with software provider where your product works under their monitor. This method is more secure and less time consuming, whereas the price of this choice is much higher.
- Follow four technical steps to figure out how to start an online casino
- Find out a suitable provider
Software development is the main part of the online casino business. Therefore, entrepreneurs who try to find out how to start an online casino should consider it seriously. The casino software providers create a portal that provides domain, security, anti-fraud, player & administrative management systems and so on. The providers also deliver other technical supports, which also include updates. If you cannot decide which one to choose, try to pick the ones who provide for all the above-stated tools. Also, do in-depth research to select a provider that has long-time experience in the market and specialized in online casino games. This kind of state-of-the-art providers can be pricy, but as it is said in a proverb, 'cheap meat never makes a good soup.'
Casino Software Providers
Moreover, you should choose a provider for online casino games which allows you versatile options with a spectrum of tools. If you do not want to experience a headache, you can use a 'white-label solution,' which will enable you to get a license, software, and payment options. However, the main downside to starting an online casino with this option is that software providers will require some percentage from the games.
Software providers offer these tools:
- Secure transaction system
- International online casino markets
- Up-to-date website development tools
- Cutting edge technologies in the market, such as blockchain technology
- Customer service for your needs
- Game management system
Choosing the right software providers can help you to embark on your online casino business. NetEnt, Playtech, Microgaming, playech.com, Booming Games, Quickspin, etc. can be an option to start an online casino.
Choose a gambling game
Different gambling games are available on the market, such as online slot game, betting games, roulette, blackjack, bingo, etc. You can select these games according to your preference or may research the market for the prognosis of specific game requests. For example, it is predicted that games based on betting tend to increase in the future, attracting many people. Therefore, as I stated above, research should be a central part of your online casino business. Also, games are the main attracting option for the players. When your online casino includes different games on the platform, people will be interested in coming to your website and play games. Keeping diverse options should also be backed with new game searching. You should also provide new game features to the consumers.
Alluring website is a must
A website is a front window that opens for the customer, and when it is appealing, engaging, accessible, not crowded, people will feel convenient to use it. Using different colors, graphics, motions, quick access to the profile, site map, etc. should be used on the online casino design. Boring websites tend to lose more customers than attractive ones; therefore, appearance should be taken into account. Moreover, you should use the latest HTML for your website, which should be provided by software providers.
However, you should consider not to overload your website because it gets to affect your customers negatively. When customers wait for several minutes because of overloading, redundant graphics, it is highly expected that they will leave your casino.
Front end development should create a website attractive yet straightforward, with all needed features yet smooth. Creating such a site requires skilled web developers, and if you cannot find such a team, you can get templates from software developers. Also, your website should have notification tools that will make players stay up to date with ongoing games.
Payment system and how to start an online casino
Payment is also a crucial thing in the online gambling business. Adding a variety of payment options can make it comfortable for the users to add deposits. Traditional and bitcoin payments should work alongside delivering options to customers. You can work with software providers to check the availability of slots payment options. Also, including payment methods to the apps can make it convenient for the users to deposit or withdraw money. Clipping the SMS notification system can also be useful for the customers. Applying different methods can make your business grow; therefore, feel free to conduct research and use crucial tools for the online casino business.
Marketing is an essential part of an online casino business
Let's imagine that you have done brilliant research and decided to work with the 'X' software provider and created an appealing web site. The question pops-up, is it enough to answer the question of how to start an online casino? The finding answer to this puzzle can be achieved if we add the marketing strategy into it. The online casino business is competitive and comprises many rivals that also entail cutting edge technology. In this situation, you need a bright and on-target marketing strategy to stay in the market.
To win the market, you need to hire an eminent marketing specialist that will help you to advertise your online casino business. Announcing release time, using enticing methods can help you grab customer attention. Moreover, using different tools, namely, SEO, advertising techniques can make your website appear on the search results and entice new players.
Also, learning from others' mistakes is crucial because you may not have time to experience all of them, as Eleanor Roosevelt said. Therefore, research other businesses, collect data where they have made errors and where they achieved their targets. These findings will help you to bypass obstacles and make your business grow.
Digital Marketing Strategies
Creating a credible website for the players may take some time and dedication, but you should also try to keep your incomes intact in this competitive market. It can be provided with different methods, such as winning hearts and minds. For example, when casino managers provide players with rules before the game, they may rely on your portal more than others because it will make them feel secure. Moreover, additional bonuses and loyalty programs with different modes, such as free bits, earning money by signing up, etc., can have a sheer effect on attraction players. Casino promotion codes with welcoming gifts can also be useful for marketing your product. Also, making a website support multilingual package will help to give access to people from all around the world.
Lastly, at this point, you need 'always ready customer support team' that will answer all the question bombings. You should also have an online chat and mailing system with a quick response because some people would like to chat rather than have a talk. You should consider every detail to start an online casino.
Stay up to date
Bitcoin currency and its transaction technology are making a future in all spheres of life, including online casino business. There is a multitude of software providers that offer bitcoin casino currency, whereas, the problem can occur when managers have no idea about blockchain technology and other related technologies. Therefore, staying up to date in technology usage should be taken into account to ascertain how to start an online casino. These new technologies also come with perks. For example, using bitcoin currency on online casino games helps managers to reduce license costs and monthly fees. Using modern methods and technologies can earn more customers because people may prefer newly available approaches for their needs. If you check the internet, there are plenty of software providers that offer casino gambling with bitcoin currency
Moreover, try to use new mobile apps and other improved versions of programs for computers to make access more comfortable. Some programs may require downloading additional packages, and this process may also hinder players from downloading your game. Therefore, keeping different options at stake may come with benefits for both sides.
Conclusion
Lastly, try to deliver innovative online casino that includes a diverse range of games. Adding new features to the games is a frequent process, that is why you need to be in contact with software providers.
Staying on the market can be a costly, time-consuming and difficult process, whereas, if you need to answer – 'how to start an online casino' question, you should consider the steps that we provided above. These steps can help you to avoid simple mistakes that most people make while starting their online casino business. Without proper research of the market, you may end up in a desperate situation because the demand for online casino is costly, competitive, and challenging to start. Another problem is staying on the market even if you managed to open your online casino. Therefore, following steps by avoiding simple mistakes can earn you benefits and achieve your target. Moreover, it is estimated that online casino business will worth almost 90 billion dollars in 2022, and who knows, maybe your new business will also become part of this growing business?
Introduction
With the world of online gambling generating billions of dollars every year, there are some obvious attractions to starting your own online casino. For starters, increasingly sophisticated payment and back-office systems mean that it's far from the technical challenge it once was. The overall size of the market is also a factor. Capturing even a small percentage of the profit from that very large pie could be a very nice thing indeed.
Want to play? Try the Best Online Casinos
For the vast majority of us, owning an actual casino is very much out of reach, but an online one? Not nearly as much. In fact, it's a more feasible option now than it's ever been and, with the market continually expanding, the potential for profits isn't disappearing anytime soon. Be aware, however, this isn't a path to instant riches but the profits on offer certainly make it worth your while setting up your own casino, as we'll see below.
Online Casinos Software Providers
The vast majority of online casinos are powered by a small group of specialist software providers. They will provide the core of your casino's identity so your choice here is extremely important. The software solution you go for will run your whole casino and determine which games are available, the type of customer support structure that will be in place, and (to a certain extent) what the overall look and feel of your casino will be like.
The number of providers in this space is relatively small and we recommend staying with one of the larger providers. Here's a quick run-down of the main casino software providers:
Microgaming: Microgaming markets itself as the largest casino software provider in the world and has a good claim to being one of the oldest also as it's older than Playtech by five years. Microgaming has constantly adapted over the years to stay ahead of the competition, with a constant goal of offering customers the best possible online gaming experience. Their product suite isn't limited to online casino games either – Microgaming also offers sportsbook betting software and land-based casino software options. Microgaming are known for being one of the main movers behind the Interactive Gaming Council (IGC) and the standards organisation eCOGRA. Microgaming provide the highest standards of security and transparency so users can rest assured the tables are never rigged against them. Microgaming casinos also have a reputation as some of the most profitable casinos for affiliates and operators.
Playtech: Playtech is one of the world's leading online casino software providers and the only one currently listed on the London Stock Exchange. Founded in 1999, the company has continuously focused on state-of-the-art technology to ensure the best gaming experience for all.
Playtech's software is available for all types of devices, so your casino will be covered across all options for web browsers, downloadable games and mobile devices. Playtech offers single accounts that are guaranteed to work across all options seamlessly and also enjoy an excellent reputation for security.
Real Time Gaming: When you're on the hunt for online casino software, RTG is usually one of the first names that pops up. This company offers something for everyone, with options available for everything from poker games and sports betting software to free mobile software. RTG has earned a reputation for reliability and trustworthiness over the years, along with providing consistently innovative and entertaining gaming solutions.
The three names we've covered above are by no means the only options out there but they are some of the most established and all have world-class reputations for reliability and security. If you're considering other providers, be sure to do your due diligence and research their offerings thoroughly.
Once you've selected a provider, you will be faced with costs to get things up and running. There are two types of contracts available that you should know about. The first one is direct and complete purchase of the software. This isn't usually available from larger suppliers such as the ones we've highlighted above. Some smaller providers will, however, sell you the entire software package which leaves you free to run it yourself, with no additional fees, and keep all the profits. There are a few downsides here to bear in mind. The main ones are that these tend to be smaller companies without the broad range of games that are needed to compete in an ever more competitive market, and you'll be responsible for all of the upkeep yourself.
The second method – and the one used by all the major companies – is a monthly licensing fee for the software, plus a percentage of the profits you make on top. For a fully functional and expansive casino you can expect monthly fees of $12000 or more, plus as much as 15% of your profits, which can be significant costs per annum when added up.
Given the costs, choosing which provider to go with is obviously a decision you do not make overnight, and there are several key considerations to work through. The range and quality of games on offer are obviously of paramount importance so you'll want to spend a considerable amount of time going through what's on offer. You'll also want to factor in which jurisdictions they support and other aspects of the license such as whether they support tie-ins with land-based casinos and what type of customer support is bundled in. Regardless of which option you go for, you'll have to be prepared to invest a significant amount of money but it is still very much worth breaking down the differences between various providers to make sure you're getting the best possible value.
Payment Methods
The next decision you face concerns payment infrastructure. These days, luckily, there is a wide range of payment providers to choose from including all the standard credit/debit card merchants and e-wallet providers that you're already doubtless familiar with. PayPal is probably the most widely known and accepted e-wallet provider but firms such as Neteller and Skrill are becoming increasingly popular. The traditional option of wire transfer is also still very much available.
Having as many payment options available as possible on your casino site is obviously the best option to attract customers. Be aware that there will be fees associated with all of these payments. You can expect to see as much as 4% of payments disappear in charges for these transactions so it's prudent to steer customers to the lower fee methods where possible. In terms of merchant services, credit and debit cards attract high fees but are ubiquitous, and offer security for both casino and customer. Similarly, PayPal offers world-class security with its various systems, and their fees are comparable to the card merchants.
Neteller and Skrill offer a similar service to PayPal and have become a preferred payment solution for many customers. You'll still want to accommodate the major providers such as PayPal and credit cards simply because their presence acts as a trust signal in its own right. Not having these options on offer can actually harm your overall credibility.
When it comes to offering wire transfer, you'll need to factor in that these transactions take longer to process, though the associated fees are much lower. It's a potentially very useful option if you're, for example, focusing your casino on the Asian market where options such as e-wallets may not be as widely available due to geographical restrictions.
The final option to consider for payments are prepaid cards. This is a relatively new class of payment options where companies such as PaySafe are leading the way and making increasing inroads into the market. They're a very convenient option for certain classes of customers so you should consider offering them as an additional payment method on your casino site.
Choosing jurisdiction for a license should comprise these units:
- Requirements for getting a permit
- Costs and fees for it
- Period of the procedure
Getting a grant to start an online casino can take several months or even a year. Therefore, you need to pay attention to time management if you want to open it as soon as possible. You can also get assistance from other companies to fulfill documentation to acquire a license. Moreover, you can evade all these documentation processes by working with software provider where your product works under their monitor. This method is more secure and less time consuming, whereas the price of this choice is much higher.
- Follow four technical steps to figure out how to start an online casino
- Find out a suitable provider
Software development is the main part of the online casino business. Therefore, entrepreneurs who try to find out how to start an online casino should consider it seriously. The casino software providers create a portal that provides domain, security, anti-fraud, player & administrative management systems and so on. The providers also deliver other technical supports, which also include updates. If you cannot decide which one to choose, try to pick the ones who provide for all the above-stated tools. Also, do in-depth research to select a provider that has long-time experience in the market and specialized in online casino games. This kind of state-of-the-art providers can be pricy, but as it is said in a proverb, 'cheap meat never makes a good soup.'
Casino Software Providers
Moreover, you should choose a provider for online casino games which allows you versatile options with a spectrum of tools. If you do not want to experience a headache, you can use a 'white-label solution,' which will enable you to get a license, software, and payment options. However, the main downside to starting an online casino with this option is that software providers will require some percentage from the games.
Software providers offer these tools:
- Secure transaction system
- International online casino markets
- Up-to-date website development tools
- Cutting edge technologies in the market, such as blockchain technology
- Customer service for your needs
- Game management system
Choosing the right software providers can help you to embark on your online casino business. NetEnt, Playtech, Microgaming, playech.com, Booming Games, Quickspin, etc. can be an option to start an online casino.
Choose a gambling game
Different gambling games are available on the market, such as online slot game, betting games, roulette, blackjack, bingo, etc. You can select these games according to your preference or may research the market for the prognosis of specific game requests. For example, it is predicted that games based on betting tend to increase in the future, attracting many people. Therefore, as I stated above, research should be a central part of your online casino business. Also, games are the main attracting option for the players. When your online casino includes different games on the platform, people will be interested in coming to your website and play games. Keeping diverse options should also be backed with new game searching. You should also provide new game features to the consumers.
Alluring website is a must
A website is a front window that opens for the customer, and when it is appealing, engaging, accessible, not crowded, people will feel convenient to use it. Using different colors, graphics, motions, quick access to the profile, site map, etc. should be used on the online casino design. Boring websites tend to lose more customers than attractive ones; therefore, appearance should be taken into account. Moreover, you should use the latest HTML for your website, which should be provided by software providers.
However, you should consider not to overload your website because it gets to affect your customers negatively. When customers wait for several minutes because of overloading, redundant graphics, it is highly expected that they will leave your casino.
Front end development should create a website attractive yet straightforward, with all needed features yet smooth. Creating such a site requires skilled web developers, and if you cannot find such a team, you can get templates from software developers. Also, your website should have notification tools that will make players stay up to date with ongoing games.
Payment system and how to start an online casino
Payment is also a crucial thing in the online gambling business. Adding a variety of payment options can make it comfortable for the users to add deposits. Traditional and bitcoin payments should work alongside delivering options to customers. You can work with software providers to check the availability of slots payment options. Also, including payment methods to the apps can make it convenient for the users to deposit or withdraw money. Clipping the SMS notification system can also be useful for the customers. Applying different methods can make your business grow; therefore, feel free to conduct research and use crucial tools for the online casino business.
Marketing is an essential part of an online casino business
Let's imagine that you have done brilliant research and decided to work with the 'X' software provider and created an appealing web site. The question pops-up, is it enough to answer the question of how to start an online casino? The finding answer to this puzzle can be achieved if we add the marketing strategy into it. The online casino business is competitive and comprises many rivals that also entail cutting edge technology. In this situation, you need a bright and on-target marketing strategy to stay in the market.
To win the market, you need to hire an eminent marketing specialist that will help you to advertise your online casino business. Announcing release time, using enticing methods can help you grab customer attention. Moreover, using different tools, namely, SEO, advertising techniques can make your website appear on the search results and entice new players.
Also, learning from others' mistakes is crucial because you may not have time to experience all of them, as Eleanor Roosevelt said. Therefore, research other businesses, collect data where they have made errors and where they achieved their targets. These findings will help you to bypass obstacles and make your business grow.
Digital Marketing Strategies
Creating a credible website for the players may take some time and dedication, but you should also try to keep your incomes intact in this competitive market. It can be provided with different methods, such as winning hearts and minds. For example, when casino managers provide players with rules before the game, they may rely on your portal more than others because it will make them feel secure. Moreover, additional bonuses and loyalty programs with different modes, such as free bits, earning money by signing up, etc., can have a sheer effect on attraction players. Casino promotion codes with welcoming gifts can also be useful for marketing your product. Also, making a website support multilingual package will help to give access to people from all around the world.
Lastly, at this point, you need 'always ready customer support team' that will answer all the question bombings. You should also have an online chat and mailing system with a quick response because some people would like to chat rather than have a talk. You should consider every detail to start an online casino.
Stay up to date
Bitcoin currency and its transaction technology are making a future in all spheres of life, including online casino business. There is a multitude of software providers that offer bitcoin casino currency, whereas, the problem can occur when managers have no idea about blockchain technology and other related technologies. Therefore, staying up to date in technology usage should be taken into account to ascertain how to start an online casino. These new technologies also come with perks. For example, using bitcoin currency on online casino games helps managers to reduce license costs and monthly fees. Using modern methods and technologies can earn more customers because people may prefer newly available approaches for their needs. If you check the internet, there are plenty of software providers that offer casino gambling with bitcoin currency
Moreover, try to use new mobile apps and other improved versions of programs for computers to make access more comfortable. Some programs may require downloading additional packages, and this process may also hinder players from downloading your game. Therefore, keeping different options at stake may come with benefits for both sides.
Conclusion
Lastly, try to deliver innovative online casino that includes a diverse range of games. Adding new features to the games is a frequent process, that is why you need to be in contact with software providers.
Staying on the market can be a costly, time-consuming and difficult process, whereas, if you need to answer – 'how to start an online casino' question, you should consider the steps that we provided above. These steps can help you to avoid simple mistakes that most people make while starting their online casino business. Without proper research of the market, you may end up in a desperate situation because the demand for online casino is costly, competitive, and challenging to start. Another problem is staying on the market even if you managed to open your online casino. Therefore, following steps by avoiding simple mistakes can earn you benefits and achieve your target. Moreover, it is estimated that online casino business will worth almost 90 billion dollars in 2022, and who knows, maybe your new business will also become part of this growing business?
Introduction
With the world of online gambling generating billions of dollars every year, there are some obvious attractions to starting your own online casino. For starters, increasingly sophisticated payment and back-office systems mean that it's far from the technical challenge it once was. The overall size of the market is also a factor. Capturing even a small percentage of the profit from that very large pie could be a very nice thing indeed.
Want to play? Try the Best Online Casinos
For the vast majority of us, owning an actual casino is very much out of reach, but an online one? Not nearly as much. In fact, it's a more feasible option now than it's ever been and, with the market continually expanding, the potential for profits isn't disappearing anytime soon. Be aware, however, this isn't a path to instant riches but the profits on offer certainly make it worth your while setting up your own casino, as we'll see below.
Online Casinos Software Providers
The vast majority of online casinos are powered by a small group of specialist software providers. They will provide the core of your casino's identity so your choice here is extremely important. The software solution you go for will run your whole casino and determine which games are available, the type of customer support structure that will be in place, and (to a certain extent) what the overall look and feel of your casino will be like.
The number of providers in this space is relatively small and we recommend staying with one of the larger providers. Here's a quick run-down of the main casino software providers:
Microgaming: Microgaming markets itself as the largest casino software provider in the world and has a good claim to being one of the oldest also as it's older than Playtech by five years. Microgaming has constantly adapted over the years to stay ahead of the competition, with a constant goal of offering customers the best possible online gaming experience. Their product suite isn't limited to online casino games either – Microgaming also offers sportsbook betting software and land-based casino software options. Microgaming are known for being one of the main movers behind the Interactive Gaming Council (IGC) and the standards organisation eCOGRA. Microgaming provide the highest standards of security and transparency so users can rest assured the tables are never rigged against them. Microgaming casinos also have a reputation as some of the most profitable casinos for affiliates and operators.
Playtech: Playtech is one of the world's leading online casino software providers and the only one currently listed on the London Stock Exchange. Founded in 1999, the company has continuously focused on state-of-the-art technology to ensure the best gaming experience for all.
Playtech's software is available for all types of devices, so your casino will be covered across all options for web browsers, downloadable games and mobile devices. Playtech offers single accounts that are guaranteed to work across all options seamlessly and also enjoy an excellent reputation for security.
Real Time Gaming: When you're on the hunt for online casino software, RTG is usually one of the first names that pops up. This company offers something for everyone, with options available for everything from poker games and sports betting software to free mobile software. RTG has earned a reputation for reliability and trustworthiness over the years, along with providing consistently innovative and entertaining gaming solutions.
The three names we've covered above are by no means the only options out there but they are some of the most established and all have world-class reputations for reliability and security. If you're considering other providers, be sure to do your due diligence and research their offerings thoroughly.
Once you've selected a provider, you will be faced with costs to get things up and running. There are two types of contracts available that you should know about. The first one is direct and complete purchase of the software. This isn't usually available from larger suppliers such as the ones we've highlighted above. Some smaller providers will, however, sell you the entire software package which leaves you free to run it yourself, with no additional fees, and keep all the profits. There are a few downsides here to bear in mind. The main ones are that these tend to be smaller companies without the broad range of games that are needed to compete in an ever more competitive market, and you'll be responsible for all of the upkeep yourself.
The second method – and the one used by all the major companies – is a monthly licensing fee for the software, plus a percentage of the profits you make on top. For a fully functional and expansive casino you can expect monthly fees of $12000 or more, plus as much as 15% of your profits, which can be significant costs per annum when added up.
Given the costs, choosing which provider to go with is obviously a decision you do not make overnight, and there are several key considerations to work through. The range and quality of games on offer are obviously of paramount importance so you'll want to spend a considerable amount of time going through what's on offer. You'll also want to factor in which jurisdictions they support and other aspects of the license such as whether they support tie-ins with land-based casinos and what type of customer support is bundled in. Regardless of which option you go for, you'll have to be prepared to invest a significant amount of money but it is still very much worth breaking down the differences between various providers to make sure you're getting the best possible value.
Payment Methods
The next decision you face concerns payment infrastructure. These days, luckily, there is a wide range of payment providers to choose from including all the standard credit/debit card merchants and e-wallet providers that you're already doubtless familiar with. PayPal is probably the most widely known and accepted e-wallet provider but firms such as Neteller and Skrill are becoming increasingly popular. The traditional option of wire transfer is also still very much available.
Having as many payment options available as possible on your casino site is obviously the best option to attract customers. Be aware that there will be fees associated with all of these payments. You can expect to see as much as 4% of payments disappear in charges for these transactions so it's prudent to steer customers to the lower fee methods where possible. In terms of merchant services, credit and debit cards attract high fees but are ubiquitous, and offer security for both casino and customer. Similarly, PayPal offers world-class security with its various systems, and their fees are comparable to the card merchants.
Neteller and Skrill offer a similar service to PayPal and have become a preferred payment solution for many customers. You'll still want to accommodate the major providers such as PayPal and credit cards simply because their presence acts as a trust signal in its own right. Not having these options on offer can actually harm your overall credibility.
When it comes to offering wire transfer, you'll need to factor in that these transactions take longer to process, though the associated fees are much lower. It's a potentially very useful option if you're, for example, focusing your casino on the Asian market where options such as e-wallets may not be as widely available due to geographical restrictions.
The final option to consider for payments are prepaid cards. This is a relatively new class of payment options where companies such as PaySafe are leading the way and making increasing inroads into the market. They're a very convenient option for certain classes of customers so you should consider offering them as an additional payment method on your casino site.
Licensing
For legal reasons, your casino needs to be licensed. In order to combat the explosion of less than reputable casinos that occurred in the early days of online casinos, several licensing boards have been set up in a variety of global jurisdictions. There are two main types of online casino jurisdiction for you to choose from: those in mainland European Union Countries, and those in smaller offshore islands like Malta.
As a budding online casino operator, your first licensing decision is to decide which jurisdiction you wish to operate under. This is an important choice and there are numerous factors involved that you'll need to consider in terms of how your casino runs, your profitability, and the startup costs you face.
You'll find different rules associated with what you can offer and to whom when it comes to licensing. For instance, some jurisdictions will expressly forbid allowing residents of the United States to gamble at casinos under their regulations, whilst others do not offer any restrictions at all. Tax is another aspect to consider, some offer tax free status to the offshore entity that runs the casino, where others do not. The cost of the license and amount of bureaucracy involved can also vary widely between countries.
The final point to bear in mind (and one that many prospective owners foolishly ignore) is perception – what does the location say about your casino? The reputation of a particular jurisdiction can cause issues with your casino's reputation, both positively and negatively. Casinos based in Gibraltar or the Isle of Man, for example, carry an association of reliability and security due to the tight controls over operational and fiscal activities that are in place there.
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.
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.
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. For a highly reputable jurisdiction such as Gibraltar using the principles based approach, the legal and associated fees of the application can amount to anything up to $1 million. You'll then also need to factor in the cost of your equipment and other expenses such as web hosting. Other jurisdictions such as Alderney will also attract high legal fees, but the license itself runs at $75k per year. In Gibraltar your costs will vary by turnover but can be as high as $400k a year. 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.
Operations
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.
Marketing
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.
Starting An Internet Casino
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. 32Red for example (one of the market leaders), pays 25% of each customer's monthly revenue to the affiliate.
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.
Starting An Online Casino Business
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. Luckily there are! 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.
Conclusion
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. Even a $1 million outlay could be easily recouped by a solidly run online casino within a year.
For some people, the affiliate route will be the one to go down. With payments as high as 35% of user revenue per month on offer, there is certainly some profit to be found there. 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.
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