The creation of online casinos is a promising business area. Despite the global economic crisis, the gambling industry retained its position in the market and showed a colossal growth spurt. In March 2020 alone, the sector's turnover grew by 3%. According to forecasts by H2 Gambling Capital, the total volume of the industry will exceed $117 billion within 3 years.
Given the new realities, many entrepreneurs are interested in the cost of a turnkey casino and the speed of return on investment.
specialists will tell you about the cost of creating a gambling project
and the nuances of working on the international gaming market
The first thing worth mentioning is that there is no fixed price for launching an iGaming project.
The amount of initial investment depends on a lot of factors, including:
- market entry format (for example, it is possible to buy an inexpensive script and constantly spend money on its improvement or order a complex creation of a turnkey online casino);
- taxes on gambling business;
- the cost of a gambling licence;
- the assortment of software (the developments from top international suppliers will cost several times more expensive than games from novice and little-known brands);
- the volume of business (you may have one slot machine site or a full-scale network of establishments, including the land-based segment), etc.
If we consider the start-up capital as 100%, the percentage of expense items for starting a business looks as follows:
- 3–7% — registration expenses (obtaining the legal status of an enterprise);
- 10–30% — the purchase of a gambling licence and its annual maintenance;
- 25–35% — the acquisition, integration, and debugging of gaming content and administrative software;
- 10–20% — hiring and training staff members;
- 5–15% — reserve capital to cover unforeseen expenses and ensure risk management programs.
A good business strategy will help you structure the items of expenditure well and calculate the amount of required start-up capital.
The step-by-step guide includes:
- the analysis of the market and competitors' offers;
- the assessment of the selected licence’s qualities;
- the determination of the necessary purchases’ volume (from gaming content to the number of payment modules and commission fees for their use);
- the number of employees required to ensure stable round-the-clock operation of a resource;
- the cost of implementing risk management programs, etc.
An important role in estimating the value of a gambling business is played by the format of entering the market:
- The independent start from scratch. The development of an online casino by an operator's own forces is the most expensive option. The cost of creating an individual project starts from $50 thousand and can reach several million dollars. At the same time, an operator does not receive any guarantees of success. He or she had to supervise all stages of work personally.
- White Label. This popular commercial program allows an investor to gain more experience in the iGaming field. It guarantees maximum protection against major financial risks. Moreover, it is possible to start participating in the program free of charge. Some suppliers provide a full set of business solutions on account of commissions from future revenues.
- The script of a gaming platform. A lot of inexpensive offers are available in the market (starting from several hundred dollars). It is possible to find even free options. Often, operators buy raw codes that require revision and, accordingly, constant financial investments. Besides, do not forget about the costs of licensing, website design and branding, market analysis, hiring staff, etc.
- Turnkey casino business. This is a professional all-inclusive solution. You just need to contact the intermediary company and describe your wishes. The 2WinPower studio offers a collection of ready-made solutions in the basic configuration.
Here are the main items of expenditure at the first stages of developing a gaming project:
Depending on the chosen jurisdiction, the cost of the permitting service can reach several hundred thousand dollars. In addition to the licence price, you should pay attention to such nuances:
- the speed of the application processing;
- the economic and political situation in the country;
- the level of the tax burden on business;
- the availability of benefits and concessions for gambling commercial projects;
- the amount of the compulsory company’s authorised capital stated in the requirements for a licensee.
The price of gambling licences in different countries in 2021
The regulator issues several variants of licences. Their price depends on the format of gambling activities.
The permission document for all types of gambling will cost approximately 427 thousand dollars
This is one of the oldest and most respected international regulators, operating in the market since 2001.
You can buy 4 classes of licences from this offshore — from permission to distribute RNG-based games to specialised certificates for equipment suppliers.
The price of the service starts from $4,660 (for the first six months) and $7,000 for each next year of operation
The local gambling industry is controlled by the Tax and Customs Board of the Ministry of Finance. The institution issues permission documents for all types of gambling activities, including land-based slot machines and sweepstakes.
The cost of the service depends on the format of the activity. A licence for a turnkey casino solution will cost 47,933 euros. Besides, a mandatory tax fee makes up 3,200 euros (depending on the category of software used)
The United Kingdom
Control over each type of gaming is carried out by a separate authority. To purchase an online casino licence, it is necessary to contact the Gambling Commission.
The price of the service starts from £25,000. The first mandatory payment is 10 thousand pounds
The unique feature of this country is in the fact that the local regulator can issue licences for gaming projects to individuals, including foreigners. To obtain permission, you need to contribute $10 million to the country's treasury.
The obligatory tax on gambling activities is 15% of the annual turnover
The reputation and recognition of the company will directly depend on the quality of the visual design, structure and functionality of the project.
A slot machine site should include:
- simple and intuitive navigation;
- laconic design without bright accents and intrusive advertising offers;
- customisable user interface;
- support for multiple languages;
- convenient access to payment instruments;
- widgets for simplified verification via social networks;
- high-quality content;
- convenient catalogue categorisation.
The price of developing a web resource depends on the number of embedded options, its technical complexity, and structure. It can vary from several hundred to tens of thousands of dollars.
The 2WinPower team offers a unique alternative — a free gambling portal created in a website builder
You can implement your exclusive project by assembling the necessary components like a puzzle. The development will take only a couple of hours. It will not require the involvement of third-party specialists. Besides, all necessary tools for customising a project’s interface are provided free of charge.
One of the most important components of online casino software solutions is gaming software.
To achieve a positive audience response, programs must meet the following criteria:
- the availability of official certificates (here are the most respected laboratories engaged in the assessment of the quality and technical parameters of casino machines: iTechLabs, eCOGRA, TST, Gambling Laboratories International, and others);
- visual design (3D content and games in VR format are relevant in 2021);
- the adaptability of software to a mobile audience;
- the compliance with trends (gamified content with several difficulty levels, side storylines and the opportunity to influence the draw result due to skills and strategies is highly sought now).
To ensure the demand for turnkey casino software, it is necessary to partner with a team of qualified specialists:
- sales managers;
- financial experts;
- risk managers;
- PR specialists;
- technical support employees;
- lawyers, etc.
Staff costs will depend on the company's internal policy, the economic situation in the region of operation, and the level of employees’ qualifications.
A good way to save money on hiring and maintaining staff is to outsource the administration of a business project.
An obligatory item of expenses is the advertising of a turnkey casino. Moreover, the volume of the marketing budget must be planned at the stage of developing a business strategy. The amount of the estimated investment must make up at least half of the future revenues of the project.
This approach will make it possible to modify the advertising program and choose the most effective tools. You also need to remember that the promotion of a gaming start-up is a mandatory regular procedure.
Different promotion models bring different results, for example:
- the effectiveness of SEO optimisation can be assessed only six months after the launch of the program;
- working with the audience on social networks will give an instant high response; at the same time, it will cease to bring results immediately after the end of a campaign;
- a newsletter is one of the most budget-friendly options that allow an operator to interact with interested users and return customers who have stopped visiting the site for a long time;
- the connection of a gaming project to an affiliate network can bring you stable high-quality online traffic and the possibility to control the cost of attracting each specific user.
Having decided to buy an online casino, an operator must form a reserve fund to cover unforeseen expenses:
- the reorganisation of a project for a mobile audience;
- the organisation of bonus programs and events;
- the creation of backup copies and the maintenance of mirror sites;
- the implementation of emergency risk management programs, etc.
The gambling industry is one of the most promising and profitable areas of commerce in recent years. During the pandemic and the economic crisis, the field managed not only to hold its ground but also to kick into high gear.
- The cost of launching a slot machine site depends on the format of the market entry. If you plan to organise a project from scratch, you will have to prepare for large financial investments (from 50 thousand dollars). The decision to buy an online casino under the White Label program will cost much cheaper. Moreover, some launch schemes do not imply start-up capital.
- An obligatory expense item is the legalisation of a gaming project. There is no fixed price for a gambling licence. The cost of the service is established by a local regulator. It depends on several factors, including the economic situation in a country, access to international sales markets, the tax burden on the business, etc.
- The promotion of a gambling start-up will cost about half of the estimated revenue. You need to plan an advertising budget at the stage of developing a business plan. Moreover, it is worth using several methods with different response times at once: social media marketing, newsletters, SEO promotion, etc.
For more information about opening online casinos and making them competitive and profitable, turn
to 2WinPower specialists. Our team constantly monitors the market. We are always aware of the most interesting industry trends.
We will help you launch the best turnkey online business of any format and reach a net profit by the end of the first year of work.
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