Research says that the online gambling industry has more than doubled in the past four years, with the UK and US being the leading markets.
This growth can be attributed to technological advancements, which have enabled major operators such as Lottoland Casino to tap into the world’s largest gambling markets, particularly the UK.
This write-up will guide you through the basics of starting an online casino business so you know how to go about it.
1. Research the Market in terms of Geographics and Demand
Whilst the iGaming industry is a global entertainment phenomenon, it’s not easy to establish your online casino business everywhere, especially if you are just getting your feet wet. In that case, the trick is researching different markets to find the one that is right for you.
You can start by studying players’ demands and revenue estimations in various markets — big and small. At the end of your study, you should be able to have identified industry trends and a better grasp of how the market operates.
For instance, whilst Europe is the largest and most thriving gambling market, it’s hard to overlook the Asian gambling market, which has been experiencing exponential growth in the past few years.
Tracking market trends and news will help you decide whether to set base in an established or newly introduced territory with huge potential. You’ll also be able to identify gaps in the industry, particularly under-serviced markets.
Once you grasp the target market, decide on the games to be featured in your online casino’s library. According to gambling statistics in the UK, slots are the most played games in the country, followed by table games.
Lastly, you can also include a sportsbook section to approach the markets from all directions. A lot of people, particularly in the European market, love to bet on their favourite sports online.
2. Plan the Business
As in most aspects of online businesses, you’ll want to plan how your business will succeed in the already saturated market. The plans you should take into consideration include:
- The management of your business: This particularly concerns the corporate structure of your business. Do you want it to be a partnership, limited liability, or a corporation? This will depend on the jurisdictions you’ll be setting shop in.
- Financial planning: Consider turnover projections for a specific period, say 1 or 2 years. Plan how much you’ll need to cover employees’ salaries, licensing, software platform, game content, etc.
After that, research on how to register a business name for legal recognition, reputation, and branding.
3. Get Licensed
iGaming being a highly regulated landscape, you’ll need an operating licence based on the jurisdiction you’ve decided to operate in. For instance, the UK Gambling Commission (UKGC) oversees gambling operations in Great Britain. The UKGC licence allows gambling operators based in the UK to serve UK players.
Online gaming operators targeting other markets besides the UK must obtain gambling licences from reputable offshore providers like Gibraltar, Curacao, and Malta. It’s worth noting that most established gaming content providers like NetEnt, Microgaming, and Evolution Gaming like working with licensed operators.
4. Design a Compelling Website
Design a captivating website to attract customers and buy a domain name for your website. Depending on your needs and budget, you can choose to self-develop your casino website, outsource a developer, or acquire a ready-made website.
The content and feel of your website should be appealing to the target audience. The first impression will dictate how customers will respond to your website.
5. Partner with a Reliable Software Provider
After accomplishing the tasks above, research the best casino software vendor to work with. Work with a provider that offers (APIs) application programming interfaces for game integration.
Besides, you can develop tailor-made games for your online casino. However, this can be a costly and time-consuming undertaking.
In this case, the best option is to work with popular casino software providers like Ezugi, NetEnt and Pragmatic Play, with numerous high-quality games and robust authorization and authentication mechanisms.
6. Double Down on Marketing and Promotion
Once everything is in order, embark on a vigorous marketing campaign to get customers who will generate revenue for your newly launched business. Consider the average age and gender of the target market to ensure you’re promoting it to the right demographic.
Research your competition to identify strengths and weaknesses, including their customer acquisition techniques, and act accordingly. It’s important that you reach out to gaming influencers or work with a reputable outreach marketing operations management to help your startup find a voice in the already saturated market.
As the business grows, you might need a Customer Relationship Management (CRM) system to keep refining your marketing strategies for continuous acquisition and retaining of customers. As such, consider giving players incentives like welcome bonuses for new customers, VIP and loyalty programs for existing players, and holding tournaments.
Final Thought
According to Statista, online gambling is already a billion-dollar industry that is expected to keep thriving in the next couple of years. This growth is seemingly inevitable, considering the fact that technology is constantly advancing.
So, if you plan on launching an online gambling platform, follow the above tips and do more research to set yourself up for success.
