How to get money from online casino?

Seeing how much profit online casinos make, you’ve probably got a thought of opening your own. It may seem easy to accomplish, but make up your mind only after you read the post till the end. The fact is you have to consider many issues starting from game providers and ending in banking management. The own gambling service requires a lot of attention and, of course, money. If you thought it would be cheap, you were dead wrong. I’ll show you all the aces now, you’d better have at least a million dollars in your bank for this business. The more, the better, though.

Software

So, for the beginning you need to determine which software providers you are going to have in the games lobby. Will they be only slots or table games, or each category with live games in addition. Depending on your budget you can have as many providers as you wish. I recommend dealing only with the most trusted like Microgaming, NetEnt or Evolution Gaming. However, keep in mind that prices vary depending on their experience and level of service. Don’t be fast with the decision. Compare all the suppliers’ offers and make up your mind carefully. The choice of providers impacts on popularity of your online casino.

Licensing

The licence is the obligatory thing to have if you want your customers to trust your casino. It shows your legit status and proof of fairness. So, don’t be mean at this point and remember that a good licence has a big cost. If we take the most reputable MGA licence, you’ll have to pay about $150,000. If it’s too much for you at the moment, try to request for the licence from Costa Rica or Curacao authorities. Their price is approximately $30,000. No matter which licensee you choose, you have to give them all the info and docs that they require.

Banking

Next step is to connect payment options with your casino site. Choose the methods widely used in most countries. For example, if you add the credit card option, you already have 80% of potential customers as the banking cards are the mainly preferable option for depositing and withdrawing. Additionally, set up e-wallets because many users like them for their instant transactions. Search for the money processing online services. This step won’t cost very high.

Marketing

The much needed step for any kind of business is marketing. Surely, all types of advertising and affiliation will help you to get more customers. Make up a marketing strategy for this point hiring the top masters in the field including SEO managers. They know how to promote your online casino and attract more visitors.

Dealing with difficulties

At this point you have to predict and prevent troubles. You should think about the security system of the site to guard your casino’s flow of information and transactions. Besides, your support team must be very qualified and multilingual in order to help customers with all questions. In fact, good support is one of the main criteria on choosing the online casino to join. Think over promotions programs. Most players, especially newbies, fall for good bonuses with less wagering requirements. For the perspective, think about mobile representation of your casino. It’s an advantage to play games on the move while using the mobile app or browser version.

I recommend that you first learn to look for bonuses and use them! Today, the biggest share of casino earnings comes from bonus programs. Make sure to learn about the wagering requirements, how to wager the bonus, which slot machines to wager on, and go collect.

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.

Registration

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.

Gambling platform

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.

Licensing

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.

Website development

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.

Marketing

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.

Casino maintenance

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.

Payouts guarantee

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.

Total calculations

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.