Online casinos belong to companies that are mostly based in the offshore tax paradises of Central America, The Caribbean, and other exotic regions of the world. In many cases, the owners of the casino sites like freebets.us are not even known since these countries, in addition to taxation, are also paradises of property and banking secrecy.
The idea of what your online casino will look like certainly plays a very important role, but many also overlook the importance of the business startup phase. Research shows that the low success of startups around the world has to do with the immaturity of the founders to move from idea to implementation essentially. This requires specific knowledge and actions that sometimes take a lot of time and effort.
The total investment for setting up an online casino starts at $500,000, however, it can exceed one million dollars, mainly depending on the two main funds, which relate to the cost of the start license and the technology the business will choose, such as hardware, software, firewalls, etc. The state license ranges from $10,000 to $250,000, depending on the legislation. The turnover in online casinos is constantly increasing, and this means that there are business opportunities if the proper steps are followed. The increase helps the turn to casino apps as people use their mobile phones more often.
Let’s look step by step at how we go from the idea to the implementation regarding the specific business.
Table of Contents
1. Choice of the game provider
In the beginning, the interested party should choose casino software and content, i.e., the games that he will offer. Software is essentially the backbone of the site, where in addition to games, all accounts, payments, marketing, etc., are managed. Games are what attract people to the casino, and there are essentially two types of vendors.
On the one hand, we have companies that develop games and platforms and companies that offer third-party content. Usually, you pay less money to the companies that create the games themselves, while there is flexibility in terms of their requirements. In the second case, the variety of games is greater, although it pays more. Everything has to do with the available capital, of course. There are leading companies that are definitely more expensive but there also some with economical solutions. A complete first-line solution is quite costly and can reach up to $130,000, but the work can be done with much less money, at least until the business moves forward.
2. Securing an operating license
If you choose a B2B provider that already offers ready-made third-party content, you may not need to go through licensing procedures, as this company itself provides this feature. This can save you a lot of money and time, but it is good when you start earning significant profits to secure an exclusive license.
In this case, it should be the choice of the country of issue of the permit. There are countries like Curacao and Costa Rica that offer low price licenses, with $30,000-$40,000 per year. More expensive are the licenses that can be obtained in countries such as Malta and the United Kingdom, with prices exceeding $180,000.
3. Payment options
Once you have secured your casino license, you will need to choose the payment methods you will support for depositing and withdrawing money. Credit cards are the most popular method, as well as e-wallets, such as Skrill and Neteller. Many companies provide this kind of payment service, while the commissions are quite low.
Unfortunately, this perspective often causes us to become overwhelmed when starting a new business. In order for an online casino to be successful, it takes a lot of time in marketing, beyond, of course, money. Once the casino starts working, almost all of the time will have to be spent on marketing to attract new players. Therefore, it is essential to decide which countries you want to target and promote in those markets.
You can use the TV, radio, internet, and print. A specialized marketing company can undertake this process, but it definitely requires more money. Promotions are a good solution for attracting new customers, and the same goes for rewarding loyal players so that they are motivated to continue playing at your online casino. Some online casinos run all-year-long promotions in different games to attract new players and boost specific games like slots. So, it would help if you researched all the competition to give your casino the best odds to succeed.
5. Meet the new challenges
Managing an online casino creates a host of new operational and business challenges. One of the most important dangers you have to face is hackers. You may need to hire professionals to ensure that you do not fall victim to attacks, which can cost you money and customers. You may not be able to create effective marketing campaigns and still need the help of experts. You may need to invest more money in new games and services or replace content that does not appear to be appealing.
Always make sure the games are easy, and the terms are clear. Also, make sure you buy games that run on most browsers and offer instant play. Most people will not be able to download software to their computers or their mobile phones to play. Lastly, make sure you have a wide range of games, such as slots, card games, board games, roulette and dice, poker, etc. Variety makes the difference.
Casinos are businesses, and they are supposed to generate turnover and profits for their shareholders, tax revenue for the state, and provide employment. So, before you make the decision, you should be fully aware of all the expenses and the risks. As an online casino owner, you must make sure that you protect yourself and your customers. So you must have top security for all of the transactions since hackers from all over the world will try to hack your business.