That is quite reasonable why a person might get a thought of starting its own online gambling business. It brings much profit, especially nowadays when online related industries are at the top. Just like the huge yearly revenues of online casinos, one has to spend the big sums of money for the business launch.
Gambling business requires many responsibilities and attention. The known stereotype about casinos that they are always cheating impose additional obligations on the casino owners. They have to license their business activity, get special certificates and constantly prove that they are safe and fair.
This ‘proof’ costs money which you as a potential owner need to pay at the very beginning. All the licenses, certificates and security technologies are the first instruments that you have to think of before you start. Not a single high roller or even a regular player will make funds into an ‘unknown’ casino without an official license.
However, in order to receive a license you need to accomplish several steps. First one is to create the company according to the laws of the country that allows running online casinos. They are usually small countries like Malta, Costa Rica, Gibraltar or it can be the UK, by the way. The company registration cost varies. In the UK it’s 550 euros, in Costa Rica you would have to pay almost 3,000 euros. However, Gibraltar and Curacao don’t take charges at all. So, let’s take the average cost of the registration of a legal entity – $1,000.
The site content is the most important. It’s the face of the online casino. The real money attractive games are what people come for to the online casinos. Basically, you need to make a deal with at least one software provider and have a minimum of 500 games in your casino lobby. Nevertheless, the more games and providers, the more customers. The price is different again. It varies from $10,000 to $150,000. It depends on the provider reputation and amount of games you purchase. Mind that you will have to pay commission from each game. About 15% from one game revenue goes to the provider. Averagely, you could pay about $50,000 for games including commission.
Finally, you can apply for the license. This step allows you to host servers and represent casino games worldwide (where they are accepted by laws, of course). Generally, the licensee is based in the same country where you registered your casino business. Accordingly, the price varies. For example, in the well-reputed Malta you can get the MGA license for about $18,000 + the same for annual fee, in total over $35,000. In Costa Rica you’ll pay totally $50,000. Besides, the license doesn’t last forever. It’s issued for several years. On average, 6 years is the expiry date. So, let’s assume that the first licensing costs $50,000 including the cost itself and annual fee.
Your casino site should be, first of all, clear and easy to navigate. Whenever a visitor enters the site, he or she must understand what the casino offers: games, bonuses, banking options, support, security and etc. Clarity, transparency and availability of all website options. The whole development of the website costs from $10,000 to $50,000. Though we can’t deny additional losses. Let’s take $50,000 for the website development stage.
This step is necessary for all businesses. In order to let people know about you, you need a marketing plan including advertising, SEO content and affiliates. Your minimal marketing losses can be $20,000. However, it doesn’t make much sense as it pays off quite a little. For the good profitable marketing system you can pay $100,000 and even $200,000 monthly. Additionally, you will have to pay a fixed sum and sort of 20% commission to the partners that brought you clients. All in all, for the advertising stage we have approximately $100,000 a month which annually is $1,200,000.
Here you should include, first of all, salaries for your staff. It should be a whole team of specialists in the fields of design, web development, security service, support, sales and marketing, finance and copywriting. In addition, you will have to maintain the site and its security system annually. The total cost of this all will be about $500,000 a year. It depends on the salary amounts you can afford, of course.
This is a specific amount of money you save in the bank as a guarantee that you are able to give payouts to your players. It can’t be used for taxes and other expenses. This is a necessary fund, and its minimum depends on the registration country. It will cost you about $100,000.
If we consider each expense given above, the online casino site costs $1,951,000 at the start. Still, you have to understand that this sum is not exact. In reality you may pay more or even less. Anyway, considering all the necessary and additional expenses, you need to have at least $2 million in your account to open and maintain the casino site during one year. With an excellent marketing plan you can compensate for the losses during a couple of years, or even less period of time.
Online gambling industry is very profitable not only for casinos, but for marketing too. In fact, if a person starts an advertising campaign about online casinos, the result will be incredible. The thing is that anyone can fall for a catchy advertisement inviting to get money almost for nothing, for entertaining games. And if people click on the ad or, moreover, join the promoted online casino, the advertiser is in a big advantage. This is how it happens.
The other problem is to find how and where to advertise online casinos. This is not so hard, though, since online gambling is not strongly prohibited now. It is very common to promote online casinos on social media sources, specialized websites, and various search systems like Google. The following are the Internet sources where you can place the ads about online casinos.
- Google. This is the mostly used source for advertising on the net. Its biggest advantage is the range. Google is worldwide, so any person in the world can see the ad.
- Social nets. To be more precise, Facebook, the most famous social network in the world. Again, it is used from every little part of our planet. However, the Facebook regulations set some limits to the ads. For example, you cannot show the online casino ad to people under 18. So, check the terms before placing some ad on FB page.
- Specialized website. In a word, the websites about online casinos, with the reviews, comments, FAQ and other info about gambling. This is, in fact, the most expensive option. Basically, you will have to launch the whole website from the very start, to fill in with information, pictures and cool overall graphics.
- Affiliate program. All the online casinos have got the program. It is made with a purpose of advertising. For example, if you already have a site, you can join the affiliates. Thus, you just need to place an ad on your site. If someone clicks and registers at the casino, you get paid.
Advertising online casinos, you can make money as easily as playing their games. But with one difference. You will get paid the money. In the advertising, there are no doubts, nor random results. This will be profitable, for sure.
In order to choose the right casino you need to follow the criteria. In fact, a trusted casino, obviously, provides safe and fair conditions for players. So, if you’re looking for the most trusted casino, make sure to read this page till the end. Here you will find the instructions of how to define trusted online casinos.
- First of all, trusted casinos should be rated high by users. The rating defines a real user’s experience, and how the casino treats players.
- Secondly, make sure the casino is regulated by the top license authority. The licensing and certifications show the fact that casinos are responsible and have fair intentions to players.
- Thirdly, check the reputation of game providers. It’s necessary to play only games by reliable software developers. The reliable provider should be certified and checked by audit companies. One of these companies is eCOGRA. As a result, it provides fair statistics of random number generators.
As shown above, there are many casinos that keep up with these factors. The list of trusted casinos you can find in the article section, we provide comprehensive reviews of many platforms, including the ratings by real players.