Online gambling is getting more popular, and the industry’s net worth is skyrocketing in recent years. Every entrepreneur in their right mind wants to be a part of this business because of its profitability. Billions of dollars are at the stake when it comes to the online gambling industry. Millions of people are daily entering casino websites to enjoy their favorite games. If you want to open an online casino, you need to rush the process.
Not only because the competition in the market is getting out of hand, but also it is crucial to start early to gain a reputation in both industry and by fans themselves. This article will talk about the online casino development process and give you valuable tips on how to start an online casino.
It would be impossible for most of us to even think about starting the gambling platform in a land-based format. The cost, legality aspect, and the monopolistic approach in this industry makes it very hard for any rookie to enter the business. However, online casinos are a little bit different. It is a very feasible idea for opportunistic business people to open an online casino. Though the process is not simple, do not get discouraged and think that only millionaires can enter this business.
It is a stereotype that has nothing to do with reality. Of course, you will need a considerable amount of money for operations that will lead you to build a gambling platform. However, that amount is not more than a million dollars if you approach the process strategically. There are a few crucial steps that you need to follow to achieve your goals in this industry. Let’s find out more about them.
Where Do You Need to Open an Online Casino?
The first steps that you need to follow to enter this business are about getting the gambling software. Most of the time, casino software products are getting undervalued by the masses because they do not know how vital this system is for an online gambling platform. The online casino software is the engine that helps online gambling platform to function properly.
Without that, you cannot offer desirable payment methods, interactive casino games, use management tools, and have the overall control over your platform. To get excellent services and provide a reliable casino platform for your customers, you need to ensure that the online casino software provider is doing their job right.
How to Choose Online Casino Software Providers?
It is not easy to determine which software provider to choose because there are many choices out there in the market. You need to have a clear vision when it comes to this. You need to see your needs and search for the partner that can provide those services right away. It is incredibly crucial to choose the right software provider to open an online casino.
If you fail to do that, you will lose both time and money and will need to start everything from scratch again. Your choice regarding the gambling software provider will determine the crucial aspects such as the games you offer, payment methods you have, the structure, design, and functionality of your casino, and the platform’s overall look and feel.
There are various options that you can look at. Depending on your budget and needs, you can find first and second-tier level gambling software providers. There are cheaper options that are available in the market too. However, it is not recommended to work with companies because of legality and license issues. It is a little bit risky because you do not know much about their security system’s reliability, etc.
After you find out the available options regarding the software provider, you can go through them one by one and try to agree.
Various Approaches Regarding the Purchase of Online Casino Software
Once you decide about the software provider, you need to evaluate costs and available options. There are two major approaches that software companies use for signing official contracts with their clients. The first option is called a direct purchase. In this approach, you will pay for all the costs regarding the software product at once.
It is not the case for larger companies that run the industry, such as Playtech, Microgaming, Net Entertainment, or IGT. Generally, smaller brands use this method, and starters in the online casinos cooperate with them. From the day you sign the documents about these software products’ purchases, all the profit will be left for you.
You will get full control over gambling software and can start your business right away. There are some disadvantages of utilizing this method when it comes down to buying gambling software. As the product’s cost is low, it is hard to believe that they offer the most popular gaming titles. Usually, these software products have casino games built in-house, and players do not recognize those games. It is the major downside of having gambling software from third-tier brands and purchasing it right away.
You will need to work on that software and make adjustments and additions to make it a better version than before. In a competitive market like online gambling, it is hard to attract customers with mediocre games and average software solutions.
What Is the Second Approach?
The second method regarding online casino software purchasing to start an online casino is about the monthly fees. The top-tier companies usually go with this method as their gambling software cost for one-time payment is exceptionally high. This contract has various points regarding the fees. Usually, you will need to pay for monthly licensing fees and some portion of the overall profit. For top-rated gambling software providers, this monthly fee can cost you around 10 to 12 thousand dollars. The profit percentage can go as high as 15 percent according to the software model and company you are getting it from. As you can see, the costs might vary according to many aspects.
It is not a kind of decision that you can make overnight. You need to evaluate multiple options before making a final decision. To start an online casino that can grow and become a profitable business, you need to prioritize the software model. The quality of the games, the software’s license, customer support, technical support, and overall functionality of the system is crucial for getting that result. The cost aspect can change according to these criteria. While purchasing the software for your gambling platform, evaluate these aspects precisely, and make sure that you are getting the best value for that product.
Payment methods are very crucial for people who intend to open an online casino. There is a wide range of payment methods that you can offer in your new gambling business. From debit and credit cards to e-wallets and cryptocurrencies, you can choose any of them and include them. Debit cards are traditional in online casinos, so you should not miss them. For e-wallets, the most popular and highly functional system is PayPal. Skrill and Neteller are becoming more and more popular each year too. In recent years, crypto gambling came to the industry and became very popular. The anonymity factor of crypto values makes it easier for users to enjoy their casino gaming experience.
As there is no possible way to track the transactions made through cryptocurrency, players love to make payments with these. The downside for this option is that not every player has access to cryptocurrencies, as illegal in many countries. However, by including them, you will tract the audience who are using them, and it will add more profit to your business. You need to be aware that every payment method provider charges a certain fee in exchange for their services. During transactions, around 3-4 percent of the money can go to the payment system provider. It would help if you made sure that the percentage is as low as possible.
Why Transaction Fees Matter?
Customers do not want to lose their money by utilizing a particular type of payment method. That is why you must make the best deals and provide them with methods that enable payments with fewer fees. The fee percentage is higher in debit cards and popular payment system providers such as Pay Pal. However, the initial reason you include these payment methods in your new online casino platform is to build trust and show reputation. If you do not have these methods in your online casino, it can negatively impact your overall credibility.
What Are the Other Available Options Regarding the Payment Methods in Online Casinos?
Wire transfer is another formidable option that you might consider adding. It takes longer to complete the transfer through the wire. However, it is very convenient for users. Let’s say that you are operating in the Asian market. In that case, it will be harder for you to offer e-wallets because of the regional restrictions that are associated with those platforms. In that case, using wire transfer can be a better overall choice for the functionality aspect of your gambling platform. The last option that you can utilize is prepaid cards.
It is a relatively new payment method that started to get recognition by gambling platforms. The companies such as PaySafe are leading the way on this one. These accounts that you can put your money and use that money while you enter online casinos. The master cards by prepaid accounts can work in any part of the world. It is seamless integration, and many online gambling platforms began to include these systems as a part of the payment procedure.
Licensing Process to Start an Online Casino
For legality, you need to have a gambling license to function. No matter where you decided to start an online casino, the license should be one of your key priorities. A variety of global jurisdiction bodies are evaluating online casinos in today’s industry. So, if you are operating illegally or use rigged-casino slot machines or other games to get an unfair advantage, you will get caught and punished by them. There are a variety of options to choose from. You can either go with high quality and expensive licenses from European Union countries or get offshore licenses from countries like Gibraltar, Malta, and so on.
The cost of getting a license from the second option is relatively cheaper than the first one. Depending on your initial budget, you can choose a jurisdiction in which you want to operate. Then, you will need to collect the needed documents for formalizing the case. There are different rules when it comes to licensing. One license might allow you to function globally, and many of them would ban you from providing services in the United States. So, depending on your needs, you need to focus on the license to handle the operations. The cost of a gambling license depends on many aspects.
The country you are getting it from, the perks that this license offers, the durability, and such aspects can affect the initial cost. Keep in mind that the license is one thing that can positively or negatively affect your online casino business’s reputation. So, while you start an online casino, make sure that the country and jurisdiction that you chose to get the license from has a good history and is reputable.
To open an online casino, you need to include all of these aspects in the right places. Otherwise, it will be tough for you to accomplish what you had in your mind. As the plan, the execution is essential for your online casino business’s long-term success.