How to Open an Online Casino: Step-by-Step Strategy
From obtaining a license, creating a website and choosing software to becoming and securing in the gambling industry. How and where to start a gambling business?
This article will cover all of the main steps.
Creating an online casino in the UK at first glance may seem a difficult task. Undoubtedly, the entrepreneurs will need a real passion for his work, the desire to invest and not give up if they want to receive a good income from the business.
Nowadays, the gambling market offers easy and affordable solutions for launching online casinos. For instance, the software is developed in such a way that it can be understood even by people who are far from this sphere, and the laws on gambling in the UK are formulated loud and clear.
The resolution of legal issues is the first item in the list because without a license you cannot go far in this business. Let us consider this point in more detail.
Table of Contents:
Before looking for a resounding domain name for the website, take care of choosing the right licenses, a list of which is provided by the UK Gambling Commission. As a rule, here it is required two licenses: a permit for the casino operation and document for the conduct of a private enterprise.
The casino must have a permit to operate, regardless of whether it is located in the UK or in another country. Those who work from another country should obtain an appropriate remote work document to offer their services to players in the United Kingdom. The Gambling Commission list contains many different licenses for each type of gambling entertainment (bookmaking, bingo, casino and lottery).
Casinos which equipment is located abroad, which do not intend to offer their products to British citizens and are aimed at players from other regions, are not required to buy Commission licenses. We recommend that you contact our representatives to learn more about the requirements for the software and to find out other things before you start the online gambling business.
Top 5 Jurisdictions for the Licensing of the Online Gambling Venues
Gambling projects are legalized in more than 80 countries around the globe. Among the most popular offshore zones are the following:
- Antigua and Barbuda Islands. The state has been providing the service since 1994. Operators work on such conditions: the annual license fee is 75 thousand dollars plus 3% of the commissions from the net revenue of the establishment. The cost of applying — 15 thousand dollars.
- Curacao. Offshore has been issuing licenses for gambling projects since 1996. One-time payment for consideration of the application is 35 thousand dollars. Monthly fees for the first two years of the service — 5 thousand dollars.
- Malta. The price of the service is 7 thousand dollars. The cost of applying for a license is 3 thousand dollars. In addition, operators are charged the following fees: a tax on the income of the institution, tax on gambling activities, payment for the placement of server equipment, for renting an office, as well as payment to two shareholders-residents of the offshore. Besides, there is an annual fixed fee — 9 thousand dollars. For the renewal of the permit, you will have to pay another 1,500 dollars.
- Alderney. License holders in Alderney provide gambling services to users around the world. The price of permits — 100 thousand dollars annually. One-time payment for consideration of the petition — 15 thousand dollars.
- Kahnawake. The Gambling Commission issues three forms of permits: a license of an authorized supplier, a form for conducting interactive gambling and a document of a key influencer. The cost of licensing gambling projects is 25 thousand dollars.
A reasonable decision would be a consultation with a specialized lawyer who will help to reveal many secrets of the industry. Sometimes it is easier to ask a question to a living person than a search engine or website.
Creating a casino web resource does not require in-depth knowledge of programming. Today, there are non-standard solutions of ready-made casino websites with a well-functioning server system, as well as various design and scheming options.
As a rule, large suppliers of gaming software make a name for themselves on the characters and storylines. Therefore, by contacting the company Net Entertainment, the entrepreneurs will be able to develop a website based on the special style and design of the company. A huge advantage of well-known software manufacturers like Playtech, NetEnt and Microgaming is that the online solutions they offer are designed to captivate players and provide operators with easy casino management.
However, design and navigation are not all that should be considered.
Nowadays, players expect quick, easy solutions, and require secure payment transactions. Therefore, you should take very seriously the issue of choosing payment systems, which will work with casino visitors. Often, they are included in the software package, but in any case, this issue is also worth a good study before you focus on a particular operating system.
What software should be chosen? Naturally, casino operators tend to offer those games that will be of interest to customers. Today, the market presents remarkable solutions that combine the products of several major software suppliers in order to provide online establishments with the most relevant material.
Depending on what type of entertainment the gambling club offers (casino games and/or poker), it is necessary to focus on the developer who would provide the casino with the necessary content, whether it is live, multiplayer or mobile games.
By the way, the market for mobile games is growing, which means that selecting gaming platforms for small screens will be a competent far-sighted decision. There are a lot of manufacturers that focus exclusively on mobile users. In poker, the participation of a large number of players is mandatory, so it is better to choose a poker network that will provide the website with the full range of actions required for this game.
To make money at an online casino, you need players. Revenues depend on the number of losses of visitors, therefore, there should be a lot of them. But how to attract new customers to the web venue? Nowadays, casino owners should be aware of the importance of SEO-optimization and be able to make themselves felt on websites visited by potential players. That is, the establishment will have to optimize the search queries and ensure proper advertising in social networks.
It can take a long time as the online gambling market is crowded. At the same time, statistical indicators on gambling show that today people are betting more often and more willingly, so there is still enough space on the market.
Anyone who knows how to work with digital-promotion, we recommend to pay attention to such platforms:
- gaming forums;
- social networking websites such as Facebook and Twitter;
- marketing by means of articles and blogging.
There is a chance that search engines will start displaying the casino website in the list of free search results, this will bring more traffic and new players to the web resource, which means that it will help to make it profitable.
As already mentioned, the competition in the market is fierce, therefore, you should not immediately rely on the competition with large and successful companies. Contact 2WinPower experts who have a wealth of experience, and even in a completely new project, they guarantee you a successful outcome. Thanks to their extensive knowledge, they know exactly what players want, how to operate the platform and what to look for.
But if you fail, you cannot blame only competition. There are many reasons why some casinos are on the blacklist of players and legal institutions. Incorrect business management has a negative impact on the company, therefore, if you do not have experience in the gambling business, you should first learn as much as possible about the pitfalls of this sphere and about the tactics of solving legal issues.
The goal of every casino owner is to earn as much as possible. But how soon can be predicted the return on investments? How much you need to invest in the case to progress? And when to expect profits from the casino?
|Cost scheme for the start of the gambling project|
|Main items of expenditure||Approximate costs|
|Purchase of license||From 15 thousand dollars|
|Website development, visual design, creation of a logo and a unique brand||From 7-9 thousand dollars|
|Arrangement of technical support service||From 2 thousand dollars on a monthly basis|
|Commission fees for payment services||1-5% from transactions amount|
|Tax deductions||From 20% of total platform revenue|
|Marketing and advertising program||Marketing and advertising program|
Even if the operators decide to perform tasks on their own, and to communicate with customers to use a semi-automatic chat instead of a full-fledged contact centre, it will cost at least £194,000 ($300,000). Marketing is an expensive, but very important stage of activity, as you will need to attract a lot of new players to recoup the investment in the web venue.
If you work hard for several months, the correct advertising strategy and optimization for search queries can be expected to return in about six months after the start of work.
However, it all depends on the skills of the businessman, fortune and other factors. The owners of the largest casinos invest a lot of money in promotion, it is necessary to focus on them in terms of competition. Choose the right ways and methods to attract the target audience.
Live-format games and comprehensive customer support in real time will require additional expenses. Some online casinos add these options only after they have collected a wide base of customers. This is a good alternative for those who are not ready to invest large amounts in the initial stages.
The cost of remote employees and hiring depends on how much the operators are able to do on their own and what exactly the website offers. Think about how technical support will influence the image of the resource. Some casinos only have a feedback form, no phone or chat, while others have paid a lot of attention to this issue, making support service available 24/7.
Although the work of the technical support service can be costly, it will really provide the company with a sophisticated look that will complement the overall marketing campaign.
Another important point is the safety of the players. Offering customers games that can truly captivate, the casino provides a constant interest in itself. In order to achieve this, it is recommended to be trained and certified by an authorized commission. Thus, the gambling establishment will provide players with the necessary support, which means that it will turn its resource into a protected and well-established system.
It would be great if every new casino visitor knows how to play correctly and safely, but in reality, everything is different. It is very important to understand the mechanism of addiction to gambling and to know the main ways to protect visitors to the casino or poker room. We also advise you to read the working policies of the various organizations in this regard.
Many players are attracted to progressive games and poker rooms with the biggest winnings. It is natural. However, when opening a casino, entrepreneurs need to understand that the establishment will cannot cut progressive games until it reaches a certain level of turnover.
Even after developing a website that offers a package of games from NetEnt, the casino will take time before it gains strength and will offer customers progressive slots, for example, Hall of Gods or Mega Fortune with the biggest jackpots among online games.
If you work hard to create a stable customer base and follow the right marketing strategy, during the year the casino will be able to afford the purchase of these games and other additions to the website aimed at attracting more players.
As you can see, before you open a casino website, you need to envisage a lot of nuances. We advise you to make a detailed water-fast plan, which will consider all aspects and calculate the planned expenses.
Thanks to this plan, it will be easier for you to achieve success in the gambling business, and you will avoid mistakes that lead to undesirable consequences. Even if you really cannot wait to start the online venue, it is better to give the casino enough time at first to just develop according to the planned scheme.
The gambling industry is showing tremendous development. By the beginning of 2019, the volume of the industry exceeded 54.2 billion euros. It is the right time to discover new horizons and become the owner of one of the most promising and fast-paying sources of income.
If earlier, when launching a start-up, you could count only on your own strength and had to study all the above aspects on your own, today there are worthy alternative options.
Leave a request to the managers of 2WinPower, and we will find the best set of solutions for gambling web venues of any category. Our experts carefully monitor the latest trends in the gambling market, offer the most popular and profitable products. Purchase of a ready-made online casino can rightly be called the most promising trend of 2019-2020.
With the help of 2WinPower, you obtain the perfect solution with a guarantee of full payback and high chances to enter the international market. Please, contact us! We accept applications 24/7.