Nowadays, the gambling business is considered one of the most popular trends; many entrepreneurs are willing to set up new online casinos and betting platforms. We will tell in this material what pitfalls await for novice businessmen in conducting such an online business, as well as how to start an online gambling business legal.
If you decide to open a gambling establishment, you should carefully study all the stages of its formation and further development. In preparation for the launch of the web portal, experts recommend considering the following steps.
Analysis of competitors in a given market
It gives an opportunity to get acquainted with the main leaders in this field. It is a good way to understand what services brand companies offer and what you can implement in the future at your establishment. The main task of any owner of a gambling business is to satisfy the clients’ requests and wishes, as well as create the most functional Internet resource. This stage should not be neglected since getting a really high-quality and competitive product depends on it.
An interesting fact: Often, people over 30 are addicted to gambling. They spend approximately 5 hours a day playing at online casinos. Young people are not too interested in this type of leisure.
Business expenses: budget planning
Independent budgeting is usually accompanied by large financial investments, and the gambling industry is no exception. The future owner of a gambling establishment should have considerable financial savings. Just buying software and licenses will take a significant amount of capital. Experts advise those who start their business in the gambling segment to take into account the possibility of increasing costs in the future, and not vice versa. Approximate calculations for launching a gambling project in percentage terms look this way:
• registration of a new enterprise: 3-7%;
• obtaining a license to conduct business: 10-30%;
• software purchase: 25-35%;
• recruitment: 10-20%;
• additional costs: 5-15%.
During the first year of operation, the budget requires the following costs:
• renewal of the license: 1-10%;
• software support: 10%;
• advertising services: 50%.
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The formal issue that the owner of the gambling establishment has to solve is the registration of a new legal entity in the state and the signing of documentation regarding the future project. The procedure includes registration of a gambling company, opening a bank account and signing documentation to pay for the services of providers.
The professionally developed software will help to attract new players and retain experienced gamblers. It is necessary to choose the provider carefully. The quality of the acquired software will affect the formation of the reputation of the newly created brand, the degree of customer interest and the frequency of their visits. The level of professional competence is not always based on high prices; the main criterion is the optimal price/quality ratio. Professional support should meet the following requirements:
• effective functional, uninterrupted operation and high-quality work;
• support for several foreign languages;
• safety system;
• the service efficiency;
• support for mobile playback format;
• convenient payment system;
• affiliate management system.
Game updates, assistance in posting information, as well as technical support are part of the standard package of services. Professional suppliers are 100% responsible for technical support after the launch of the product.
In order to obtain the right to start conducting online gambling activities legally, an entrepreneur must receive a license from regulatory authorities. The certificate is responsible for the legality of the gambling project and protects the consumers’ rights. It can be bought in one of the offshore jurisdictions or in the countries of the European Union.
For example, the most popular regulators are Directorate of Offshore Gaming Curacao, Kahnawake and Gaming Commission. It should be noted that a license in the European Union will cost more than in offshore companies. Therefore, in Austria, if you want to start a business in this field, you need to have 350,000 dollars in order to buy the license, and in one of the offshore states, it is necessary to pay approximately 10,000-30,000 dollars. The difference in price is due to prestige and status.
Obtaining a license in order to start a business takes on average 1-6 months depending on the country.
To be authorized, you will need the following documents (the most common practice):
• registration document of a legal entity;
• company charter;
• passports of all founders of the company;
• the decision of the constituent assembly regarding the name of the enterprise;
• documentation proving that the future owner has an office (rental payments, utilities, etc.);
• papers containing information on the availability of bank accounts, as well as on the necessary amount of funds on them (each jurisdiction has its requirements);
• a business plan indicating the estimated amount of profit.
Start an online casino
Creating a website (design solution, platform) is the most important issue. The appearance of the service is the face of the future brand. The Internet portal should be not only pleasant to perceive but also functional, have convenient navigation, a simple form of registration and a high level of security. These and other factors affect the popularity of the gambling project, the players’ degree of interest. Experts recommend watching examples of competitors' web services to make your own site more functional and attractive.
Today, online casino software development teams provide a ton of platforms with a specific set of features. The cheapest and most simplified option is the White Label scheme, which became popular back in the 90s of the last century.
The solution allows you to run a gambling company under the brand name of a more famous provider while obtaining a license is not required. Thus, the service of the "subsidiary company" is created personally according to the new operator’s requirements.
Domain name acquisition
Having received a permit to conduct an online gambling business, an operator must purchase a domain name for the Internet resource. The main task is to make the service have the shortest, most readable and catchy name for users. Buying a domain name for an online casino/betting resource should be deliberate, focus on the target audience and relevant key requests.
An extensive selection of gambling activities is one of the reasons why players choose one or another web portal. Attracting visitors is possible through the integration of popular and classic games. Thus, experienced players will be confident in the reliability of the yet unknown gambling company. It is also important that the software is supported by various mobile devices. This will significantly increase the target audience.
Implementation of payment systems
The first virtual establishment Internet Casino System Version I was opened in 1997. It was developed by Microgaming, a well-known software development company, and has been working for over 20 years regularly improving. Earlier, no one could even imagine that gambling would take place on the World Wide Web but everything is changing. At that time, the client base was minimal so the Internet portals did not bring high income.
To deposit and withdraw funds from a virtual casino or betting portal, you need to use special payment systems. Using just a couple of services is irrational since the gambling audience coverage is quite high.
Experts advise choosing only the most reliable ones.
Read more: Major Innovations in the Gambling Industry
After passing through all the preparatory processes, a project is launched. The operator and software provider affect the total time taken to prepare the web portal for work. The owner of the company can speed up the process by giving developers, programmers and designers feedback.
A well-thought-out marketing tactics will allow the gambling project to become successful while a low level of attendance and zero traffic will become the causes of bankruptcy. To prevent this, you should use online marketing tools, namely SMM and SEO optimization, an active advertising campaign, email newsletters, various promotional and bonus programs.
The goal of the online casino’s owner is to create trust in a new gambling project. You should not save on the portal interface, advertising or buy software from the company that does not seem reliable.
An interesting fact: in online casinos, along with traditional gambling, there are also lotteries. According to statistics, they are even more in demand. 55% of the total profit of gambling companies accountы for them. Every second inhabitant of the planet has participated in the lottery at least once.
Start an online casino business
When creating a gambling resource, it is important to pay attention to the reliability and security of the service, since the probability of fraud on gambling sites is quite high. The security service must identify all suspicious actions in order to take the necessary measures.
After launching an online casino, you need to consider a strategy for attracting visitors to a gambling site. There is high competition in the gambling segment, which is why online establishments are fighting for each new client and try to retain regular customers. For this, the establishments’ owners do their best: offer attractive conditions, provide a huge selection of games, various bonuses, jackpots, etc.
An essential criterion is the interface of a web page because ease of use, functionality and comfort are of great importance for any user. Interesting offers dedicated to specific events/dates will be a great way to attract new customers to a gambling company.
Working with Bitcoin is another factor that should be considered when creating an online casino. Most modern providers already offer Bitcoin as an alternative payment system. The advantages of the system are related to savings on license fees and monthly bills, as well as quick payment for services.
Experts recommend online casinos’ owners to learn more about cryptocurrency, analyze the features of gambling with Bitcoin and also study the procedure for transferring funds. To understand the principle of operation and advantages of this system, you can place bets in online institutions where this system already works.
Read more: PWA: Utilization of Technology in Gambling
How to start an online gambling business: conclusions
Indeed, opening an independent licensed online casino/betting company is not as easy as it might seem. The preparatory phase and activation of the project is a lengthy process that requires money and time. You should not save on investments when creating a gambling project since the competition in this industry is quite tough and only savvy gaming brands are among the leaders.
As mentioned earlier, the Ministry of Finance of the Czech Republic supports the decision to introduce higher taxes on some types of gambling activities.
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