Can You Open An Online Casino
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.
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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.
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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.
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.
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 $1 million outlay could be easily recouped by a solidly run online casino within a year.
For some people, the affiliate route will be the one to go down. With payments as high as 35% of user revenue per month on offer, there is certainly some profit to be found there. For others, going down the white label route will represent a happy medium.
Can You Open An Online Casino Free
As we've stressed throughout the article, carrying out extensive research is an essential first step towards setting up your own online casino. We hope this article has pointed you in the right direction and given you some valuable resources you can lean on to make the right long-term decision.
Check our list of Top Online Casinos
If you want to open an online casino in the U.S.A., there are some things you need to know about. The online gambling industry checks in around 50$ million dollars every year and the numbers are still growing. If you are an investor, this is a profitable business idea. You have a lot of business options and ways to open your firm. However, you should expect plenty of competitors. The online gambling business is profitable, and it doesn’t take a lot of time to establish your name. But, if you open an online casino, be aware of all the updates. This industry is famous for its way of keeping up with technology innovations. If you want to be successful, you need to offer most of the updates available online.
Nevertheless, you can choose preset online casino templates and then customize them. Although they lack the originality feature, they are still profitable. In this article, we are going to explore the United States online casino industry and how to open a business in 2019. Also, we will explain the built-in online casino preferences and their advantages.
Legal licensing
This is the first step in opening an online casino, especially in America. Gambling regulations differ from state to state, so make sure you ask professional help when doing this. There are a lot of restrictions, so you need to know what you can and can’t do. We need to specify that you can’t get a working license on the United States territory. Therefore, you have two options: foreign countries or European countries. Each of these choices has different patterns, and various jurisdictions so choose wisely. Reputable online casinofranchises got their licenses in Malta or Antigua island. The good thing about this fact is that you have a lot of options. Select one that fits your budget comes in time and has excellent reviews. Typically, it takes between six months and one year to obtain an online casino license.
Next, you want your business idea to become a legal thing. You need to register your company and open a bank account. Following, you have to make agreements with multiple payment system providers. After doing this operation, you are good to go in legal terms. However, you should consider working with a professional consultant. If these are your first steps in the online casino industry, someone needs to guide you and explain potential pros and cons. If you want to save time, white label casinos are always at hand. We will talk about this alternative later on.
Software
Now that your online casino company has a license and is officially legal let’s make it come to life. From now on, every step you make as an investor is essential for your business’s future. We are talking about security, design, customized settings, game variety, and so on. Luckily, online casino software developers can take care of this. Always do your research and try to read a bit about the leaders of the online gambling business. You need to know what suits you and your budget and what quality you expect. Famous software providers charge a bit more usually, but their services never disappoint. As we mentioned earlier, the software you choose needs to come with an impressive game portfolio.
What are the key aspects?
This means that it has to have a lot of games that range from sweepstakesslot games to table games. However, the gaming platform and its settings are crucial. You need a user-friendly interface that allows easy navigation. Investors should think of themselves as well. The software you pick has to come with some management features as well. We are talking about online business so that you will get your profits and marketing data from the online world as well. The right software should have the following features: a content management system – creates digital content. Management systems for each essential casino part: players, bonuses, and the actual game. Everything needs separate management and separate business tools. Nevertheless, there’s a payment system management tool, an anti-fraud system, and a reporting engine. Most online casinos work with affiliate companies, so you need a management platform for them as well.
Also, you need to remember that this type of business needs continuous updating. Therefore, your gambling site requires a technical support feature for its clients. Also, you need to make sure that you work on a reliable platform that handles this many updates.
Marketing
You made up your mind and chose a reliable sweepstakes software provider. This means that you are ready to jump in the online gambling waters. But, beware of the sharks! This industry holds so many names and franchises. As a business owner, study your competition first. Look at the online casino leaders and see what they offer and what the reviews say. Look at their website design and identify their marketing strategy. As a new-comer on the market, studying your competition is the best thing to do. That’s how you can come up with an original marketing plan that has it all or is one step ahead of everyone.
Study the leading companies and their take on branding, advertisement, and promotions. These features are vital at the beginning of your online casino. You need to raise awareness and bring as many players on your website as you can. By using a smart marketing strategy that targets brand development, this action will be so much easier.
If you represent a brick and mortar casino with no online presence, think of your existing customers. Come up with V.I.P. packages and big rewards on your online casino. Customer service is vital, so rewarding your loyal clients with bonuses, will only increase your online reach.
Working with professionals
The final step regarding marketing is contacting a marketing professional. As we already stated, branding and advertisement are crucial factors at the beginning of an online casino. You need to attract customers, and you need to know how to do that. Therefore, contact specialized companies. They will help you with SEO planning, email marketing, and media resources. These companies will provide the right business solutions and will tell you which company you should take as a partner and so on. After finalizing this step, you can start thinking about real promotion tools. For example, you can start thinking of your bonus policy and if you want to have a loyalty club or not. At this point, you can also make the final procedures with your software provider. Set the definitive agreements and start customizing features.
The budget for opening an online casino
Knowing how much you want to spend on your future venture is essential. That’s how you choose most of your partners, software, and other tools. You should separate your budget into two. One part of the money should go on licensing, software and branding and the other one on the website itself. Plan this budget before opening the online casino and plan it for at least one year ahead. You need to be aware that the cost will be higher than expected. However, you need to invest to reach a lot of players. As a start-up, you need to save money for advertising and promotions because these activities are vital. Pre-opening expenses go on set-ups and pre-marketing actions.
Most of your payment will go on licenses and software products. After you open the online casino, you will mostly spend money on marketing and staff. You need to keep your customers entertained and come up with new things always. Therefore, never give up on promotion tools and branding solutions. Other expenses go on support and maintenance and casino games providers. As an investor, always check for the best price/quality ratio and do your research very well. Ask for professional advice if you are not sure of your purchase. Like in any other industry, the online casino world has its scammers too. Choose wisely to avoid such risks.
How to open an online casino
After you set up all the details, you are ready to begin the online casino. It usually takes up to the three months until the software developer sets up everything. This includes website design, games, and other custom features and settings. Opening an online casino depends on the license as well. You can have the platform ready, but you might still have to wait for your permission. While professionals are working, investors can take care of some things as well. There’s always a legal part of the business, which usually requires documents. As a business owner, you should make sure you have all the papers, copies, and documents filed and organized. Besides, keeping in touch with your business partners is always a good idea.
Checking on your online casino software developers or web-designer comes in handy in the end. You can give out feedback and useful tips and reviews. Always remember that this is your company, and you sho ideas should be ultimately expressed. Working with authorized companies will only make the final product high-quality.
Active marketing
If you’ve done your research well, you will see that the best online casinos have smart marketing strategies. It is not about who has the most games or the most partners and so on. Sure, variety is always welcome and attracts a lot of players, but you need to know how to package it. The most popular online casinos of 2019, didn’t offer more than fifty games. What they did provide was a user-friendly interface. Easy to use with a simple but attractive design. Most software developers know that design is vital because it attracts players. However, there are some strategies behind it, most of them approaching the player’s psychology.
Can You Open An Online Casino Online
Opening an online casino takes a lot of hard work, especially in today’s industry. In 2019, making your online casino famous can seem harder than ever. The competition is fierce, and it is tough to earn the right spot as a new-comer. Therefore, we will list the most important marketing features. Don’t miss checking them off of your list!
Marketing in three steps
First of all, think of what you want to target. Of course, you can approach all kinds of gamblers, but the online casino industry allows you to choose. For example, online slots are the most popular games available. You can focus only on online slot games and offer more of these games compared to others. You can attract gamblers by setting all-around high bonuses or jackpots. Everybody wants to win in an online casino so that you can exploit that aspect. Because we’ve talked about games, choose the best providers. Even if you don’t have that many games, ensure that all of them are high-quality and interesting. Add a dash of creativity and originality, and your customers will come back for sure.
Importance of Promotions
Second of all, make sure people know about your online casino. Use promotions and online advertising to let people know that you will open an online casino. After you launch the website, you can use SEO, online advertising, and banners to keep the business going.
Lastly, take care of your clients. After you open the online casino, make sure it works smoothly. Reward your clients and ensure that they enjoy their gaming experiences. In case of any issues, provide a 24/7 technical support line. Ensure that your staff replies fast and that they offer excellent customer service. Also, the players should navigate easily on your website and understand every setting. Provide help and F.A.Q. Sections and even demo versions for some games. Meeting your customer’s needs and requirements is crucial. Keep on fulfilling their needs, and you’ll see your business skyrocketing.
Alternatives
At the beginning of this article, we mentioned some ready online casino options. We were talking about white label casinos and turnkey online casinos. These are built-in options and you buy them like an off-the-shelf product. These are not the best business options because they lack originality. However, they save you a lot of time and money. You shouldn’t ignore the fact that you still need to take care of some issues. Marketing, setting payment systems, and other such activities are still your job. But, if you choose these online casino alternatives, you don’t have to worry about the license. White label and turnkey casinos are already licensed.
Exploring White Label Casino Features
White label online casinos are top-rated nowadays. They come from leading software companies so you shouldn’t worry about quality. These products are tested over and over and perfected to operate correctly. Some providers can customize some features to make it look more original. Even if you opt for this choice, you still need to do some research. Marketing goes the same as for regular online casinos. You need to study the market and select what category you focus on. Select relevant games and then hope that you made the right choice. If you open a white label online casino, you may need to invest more in branding and promotion.
Turnkey online casinos are similar to white label casinos. The software producers do everything from scratch, according to your wishes. You need to keep a close relationship with your partners if you want your product to turn out best. Theonline casino provider implements the entire business. As an investor, you receive full control of the administrator panel. Therefore, you control the company only after it launches. It is a good alternative, but it is quite expensive, and it takes more time than white-label online casinos.
Final Thoughts
It is not easy to start an online gambling platform because there are many things which needs to be into place in order to realize your business idea. In this article we discover most of them and hopefully it will help you to build your platform from scratch. You need to think about attractive brand name, the software provider, the games that you will offer, your marketing strategy and more. After only completing these steps, you would be able to build a great platform that players from all over the world can enjoy.
Riversweeps Platinium
Can I Open An Online Casino
Investors that want to open an online casino need trustworthy partners. We mentioned earlier that most of the required steps need professional assistance. Our pick is Riversweeps Platinium. This company offers excellent marketing solutions and software products. They let experience talk for them, so they already know that customer service is vital. Therefore, they are always supporting their customers, and they provide a 24/7 technical support line. RiversRiweeps Platinium provides a recovery option. This means that if anything wrong happens, you won’t lose your business data, and players can continue their games normally.
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Besides, this online casino software company has a multicurrency feature, cashback feature and is available on any mobile device. Also, our clients can personalize most of our products. Design, gaming, or management features are always adaptable to our client’s wishes and needs. Ultimately, Riversweeps Platinium provides a full control administrator panel for the investors. Everything works on full capacity and ensured security. Open an online casino with Riversweeps Platinium.