Unless you are Bobby Axelrod from the popular Showtime TV series called Billions, it’s not very likely you’ll start a land-based casino anytime soon. Most notably this year. If you are not a nation-state billionaire, and we both know you’re not, then you’re better off directing your efforts towards the internet and start an online casino. It might not have the same ring to it, like opening a casino in the heart of Vegas. But make no mistake, the profitable a just as real.
The best part, you don’t have to pour in the same amount of cash. However, like every other type of business, you need to put in some money. Hence, it is good to start asking how much money you need to raise to start an online casino in 2020. We will answer this question in this article, and some of the other weightier matters you take if you want to start your own online casino.
Sure, by deciding to start an online casino, you’ve spared yourself a lot of the overheads and troubles associated with putting physical buildings into place for a land-based casino. To some out there, this idea might seem like a ridiculous one. Some are intimidated by the regular upheavals in the rules and regulations. Especially when you consider international gambling rules.
Also, you have to contend with the ever-growing host of fierce competitors. The odds seem to stack up against this idea to start an internet cafe business or online casino.
Does it Make To Start An Online Casino Sense in 2020?
First, you need to validate any business ideas you have. That’s if you earnestly desire to move forward with it and make a real impact. Hence, you will need to find out the demographics and psychographics of your target audience. These two terms are pretty straightforward; don’t let the sounds intimidate you. They describe the kinds of people who patronize online casino games after you start an online casino. The great news about those who will start their own online casino in 2020 is the fact that your customers aren’t restricted to players in your immediate surroundings or geographic location.
Hence, the internet opens up the door to audiences and people in faraway lands, which a land-based casino can never access. Therefore, anytime you think about a global business which can serve both male and female, especially those between 18 years old from every corner of the world. The only restriction when you start an online casino is the internet connectivity. Anyone with a device connected to the internet can have full access to your website or casino app.
In addition, there are different niches within the online casino industry. Thus, with some research, you can concentrate on a particular niche and dominate it. It may not be easy embarking on a general android game programing project for your casino. However, it will provide you with long term success. And the financial returns will send smiling all the way to the bank.
Interesting Stats About the Online Gambling Industry
According to statistics, the U.S. alone has about 5,324 registered and licensed gambling companies, and online casinos spread across the entire country. Together these businesses can employ about 2,194 people. Also, the online gambling industry in the country gathers in a total of about $278 billion annual income. The yearly growth rate of the industry, according to projection, is set at 2,0% for 2016 and 2011. For all these impressive figures, two organizations are leading the charge. These are SJM Holdings Limited and Las Vegas Sands Corporation.
In IBISWorld’s recent report, the worldwide online gambling industry requires a moderate level of capital requirements. In the report, IBISWorld stated that the online gambling industry requires significant labor input areas such as web maintenance.
Also, it became apparent that entrepreneurs are most driven to start their own online casino by several factors. One such factor is the increase in smartphone usage and internet penetration around the world. Thus, the ease of set up and management though they play a vital role, do not account fully for the industry’s recent boost. However, you need an excellent understanding of the online community, cybersecurity, and the many regulatory bodies that guard the operation of internet-based casinos.
True, the industry is heavily regulated for obvious reasons. But you can find a way to win big. Just like your plays would win at slots, despite the odds and probability of losing.
Online Casino Software to Start An Online Casino
Gambling software is one of the aspects that you need to focus on while starting an online casino. It is the component that has the ability to make or break your potential business. So, while choosing the software for your platform, you need to be careful. Keep in mind that, functionality and reputation of your future business depends on the online casino software. If you employ high quality product, your will get better results and vice versa.
Below we will cover the most important issues that are related to gambling software. For now, lets discuss your possible options and analyze their pros and cons. Gambling software can be categorized as white label casino solution and turnkey software. The white label casino software is a ready product that is great for those who has a limited time for starting. The customization aspect for this model is not so effective.
By choosing white label software, you will immediately access all the function and internet casino games that the software provider offers as a system package. It is time-efficient to go with white label sollution. However, it is better to remind you that the price for this software is a little bit higher than the turnkey solution. The reason for that is, white-label software comes as a finished product. There is no reason for any addition or new acquisition when you buy this model.
Turnkey Gambling Solution: Is It a Good Choice for Starting an Online Casino?
On the other hand, a turnkey software solution is different than this model. Turnkey is the great choice for those of you who have enough time and investment this can be a better choice for you. Turnkey system allows you to customize almost all aspects of your business from front sizes to colours and game selection. In order to get the best out of turnkey software, you need to hire a professional software developer. You need to work with him or her during the process. For software alone, you would not pay high prices. However, for other complications that come with a turnkey system, you need to invest a little bit for better results.
Issues to Surmount – Software
By now, you must have seen how profitable it can be to start an online casino today. Once you make a final decision to own an online casino, the next, you need to find out the best online gambling software you can use. The kind of online casino software you choose will primarily depend on the type of casino you want to run and the types of games you want your players to enjoy. Whether you intend to offer sweepstakes games or popular river slots, you can find the kind of online casino software that will provide both or online one type.
Some prefer to start everything from scratch. In this case, they build their own website, custom casino platform, and even a matching application. This may sound very enticing. However, unless you have Mark Zuckerberg’s level of coding and Bill Gates’ business skills, this might not be the right approach for you. The time, dedication, experience, and luck needed for this kind of achievement may just be lost to many entrepreneurs. That’s why you can find lots of online casino software providers who specialize in the development and sales of turnkey casino solutions.
In addition to this, you will find developers who provide spoke sweepstakes software to help launch and run the kind of casino you need.
All these services and the products they offer come at a cost. Usually, you’ll find casino development plans ranging from $100,000 to $300,000. Mostly, these packages come with a 15-45% royalty payment to the developer company. Usually, you will get the choice to either pay higher royalties and lower upfront payment and vice versa.
Choosing Gaming Content Carefully While you Start An Online Casino
Once you decided to enter the gambling industry, you need to take several steps in order to reach your goal and start an online casino effectively. There are a few questions that need to find an answer before you start thinking about starting a business in this industry. Those questions are:
- What type of games are you going to include in your platform?
- Will you use only popular gaming titles or not?
- Are you going to include both chance-based and skill-based online gambling games?
- How can these factors impact your business in the long run?
If you cannot fully comprehend these questions because of the lack of knowledge about the industry, there is nothing to worry about. Lets briefly get into that and then continue our guide.
What type of Gambling Games do You need to Select?
The gambling games have different types such as skill-based and chance-based games. Skill-based games involve luck aspect too, however, they can give an edge to experienced players and you can actually use strategies to win those games. The examples for skill-based casino games include poker, blackjack, and so on. On the other hand, chance-based casino games are the ones that determine the result according to the random number generators and it works through pure luck. The examples for this type include baccarat, online slot games, roulette, bingo, keno, and so on.
The mentioned game types are the most popular ones. While asking the question about including well-known games, we meant these ones. There are other not so popular gaming types in gambling such as craps, sic-bo, etc. If you decide to create a platform that offers products for a wide range of people from most of the demographics, it is better to include as much as gaming titles as possible. However, if you target only a certain type of audience, using specialization and focusing on one area is the best choice while you start an online casino.
Are you Going to Include Live Module Casino Games?
Nowadays, online casinos offer live casino games and fans absolutely love it. If you have an idea of including these games in your platform, you need to fix that issue before purchasing a gambling software. Live modules allow players to come into the same casino from online and play with each other. There are platforms that allow players to enjoy real gambling games from their houses. Special cameras are designed in land-based casinos from which those players are accessing the real casino tabels. If you have this on your mind, make sure to discuss the case with your gambling software provider to ensure that they offer this service.
With so many questions that need to be answered before you start an online casino, it is no wonder why gaming content plays a crucial role in the success of your gambling business. You need to think about these issues before it is too late. As a matter of fact, most online casino operators are choosing the gaming software provider according to their gaming library. Availability of popular gaming titles will determine the number of users who will come to your platform. For instance, the games like Mega Moolah, Totally Wild, Gonzo’s Quest and Book of Ra are among the top tier online casino slots. Whenever players see them, they want to get into the gambling websites and enjoy their amazing gameplay. These type of details matters and are in fact very crucial for the success of your gambling business.
Why You Need to Spare Enough Time for Marketing Activities?
No matter how great your platform is, without applying a great marketing strategy you cannot get the recognition from online gambling audience. If it was two decades ago, you would rather focus on other aspects than promotional activities. However, in today’s industry youcannot do that because there are thousands of competitors. The online casino industry has very adverse competition between the companies and in order to get to the top, you need to pay more attention to the marketing. You need to consider both physical and digital marketing activities and put emphasis on the second one considering the fact that it is a hi-technology age. Promoting your platform through
- PPC ads
- online banners
- and improving your SEO
would make a great change and increase leads to your website.
Is it Worth It?
The process of setting up an online casino can be pretty straightforward or complicated. It all depends on your choice of partners. However, you can rest assured that any amount of money and effort is sure to generate even more returns. As the adage goes, you need to spend some to get some. However, to make all your efforts, time, and money worth it, you need to be able to market your casino.
Thus, when you start an online casino, you can’t declare the process finished until you have appropriately marketed it. You will get the kind of traffic and conversion it takes to ensure profitability through this. Hence, your investments shouldn’t ignore this part. Ultimately, your choice will depend on your budget.
Summing up the cost software and hardware, hosting and domain registration, licensing, branding, and other issues, you will have to spend some cash to start an online casino. However, money shouldn’t be your greatest concern at the initial stages. Therefore, the games you provide also play a key role. Some of the more popular selections like online casino real money games are attractive both for players and owners alike. What are some of the challenges you encountered in your plans to start your own online casino? Let’s know in the comments below.
Vegas7Games is an online gambling software provider that is ready to help you to start an online casino. With our software, you will get interactive casino slots, keno, baccarat, and many more interesting table games. Without providing easy gameplay and high-quality games you would not be able to attract a gambling audience and make lots of money off of this business. So, be careful while choosing your partners and do not ever settle for less while there are other prolific opportunities out there.