The online gambling is a very lucrative industry and for this reason, is very competitive. Regardless if you have or not experience in the sector, it is undoubtedly something that you want to consider as a startup. If you’re going to be successful in this industry, you would need to follow a proper sequence of steps and pay attention to essential details. Below we have listed those criteria so that you know what is required to start up an online casino company.
Step 1. Preparation
- a) Legal issues
To operate an online gambling company you would need to obtain a license in the jurisdiction you wish to operate. There are two main ways this can be done. You can either get a license in an offshore country or in one of the European Union countries or both. Each solution has it’s own pros and cons as there are variables in terms of budget, time and reputation. Usually, it takes from 2 to a year to get a gaming license. In Malta, normally 6 months are required.
Once you have decided which jurisdiction to go, you would have to register a legal entity. You would need to open a gaming company, also open a bank account and set up arrangements with payment system providers.
To simplify most of those tasks, you could go for the ‘White Label‘ scheme. In this scenario, you will lease the software and also the gaming license and the infrastructure. You would still operate the casino under your own brand but in this case, the infrastructure will be all ready. The main advantage of using a ‘White Label’ scheme is that you will reduce significantly legal and banking bothers and also reduce costs.
- b) Software
Once you have sorted out all legal issues you would need to choose a professional online casino software provider. There are many in the market and if you want to have an idea of the outcome is probably best to compare what the best performing online casinos are using by visiting online casino comparison sites like CasinobiggestBonus.com.
Attractive design is essential but you would also look at volume and quality of the games, the reliability of the platform and several other criteria like:
- Player management system
- Bonus and promotions management system
- Game management system
- Payment system management interface
- Cashier system
- Reporting engine
- Support of different roles for administrators
- Affiliate management system
- Anti-fraud system
- Retention email system
Having the opportunity to receive regular software and games updates, it is essential and the same can be said in regards to hosting and technical support. Professional suppliers will be able to cover all those things in their software package.
It is worth spending a bit more for a professional software package as ultimately this is your core product. Without good games and a good user journey, you will not be able to attract and retain customers. Going for the cheaper solution at first might well result in your online casino business to be unsuccessful or to having to double spend soon to cover the gaps.
- c) Marketing planning
Having a great online casino site is very important but if nobody knows that you are existing, then you have a problem. A cost-effective marketing strategy is very important for the success of your business. The first thing you would need to do is to do a competitor analysis to see who are the leaders and what strategies they are using. It is also important to look at their return on investments. You would need to find an offer to attract new players: the offer would have to be well balanced to avoid acquiring bonus hunters and cause a significant negative for your company.
Once you have done some research, you should plan your marketing strategy and adapt the best practices you have learned to reach the best results.
Once you have clear what you want to achieve you should get in touch with an internet marketing agency or with individuals that are specialised in online gambling. You will want to hire an SEO agency, email marketing, paid media experts and so on. If you get this part correctly, you will drive the right traffic to your website at the right costs, generating a positive ROI for your business.
It is also crucial to define your bonus policy and your affiliate marketing strategy.
- d) Budgeting
Once you have identified all the different costs for legal, software and marketing you should start to plan your budget. For startup companies, the budget should be set for at least the first year in business while for established companies the budget should be for as long as possible. In the beginning, it will be harder as you would have to earn the trust of your players while existing businesses already have a level of trust.
Before the launch, you should set the budget to cover the costs of setting up the software while after the launch you should focus mostly on casino promotion and marketing.
Additional Step 4. Bitcoin casino
As the online casino industry is a fast-paced one it is important always to think ahead and trying to anticipate trends. Forward-looking online casino software are offering Bitcoin as one of the payment ways of funding an account.
Bitcoin casino delivers significant savings in regards to license costs and monthly fees. They are proven to increase customer loyalty as payments are processed very fast.
Setting up and managing an online casino is hard as there are lots of legal and financial issues to overcome but it can be hugely successful. It is important that you make the right decisions in regards to the software and also marketing. The demand for online casinos is on a continuous rise. Specialists are predicting that the market will grow 40% in the next years also considering how mobile is facilitating the explosion of this sector. Following all the steps described above will help you to create a quality and sustainable online casino and have a great chance of outweighing the competition!