The Most Profitable Business in 2019-2020: Step-by-Step Instruction on the Creation of an Online Casino From 2WinPower
The gambling industry has been and still is one of the main factors affecting the global economy. No other sphere of action can be compared with the gambling market in terms of the pay-off period and the level of profitability of projects. At the same time, the industry is constantly transforming and changing ― new technologies have become the most important momentum in the development of the online sector.
In light of trends, it is time to think about your own gambling project. This article provides detailed instruction on the creation of an online casino and describes the most useful options for entering the market and the most promising areas of operations. But before we start studying all the nuances of the creation of a gambling startup, it is worth finding out the reasons for the rapid growth and development of the industry.
Gambling has become an integral component of the life of the modern generation. Today, for being able to have fun, it is enough to have a personal gadget or a computer device with access to the Internet. At the same time, players can be even in the most remote corners of the planet and use any of the existing currencies for conducting payments.
Table of Contents:
The 2WinPower team has collected comprehensive information on the best ways of creating a casino, the order of activities that operators should follow, and the nuances that should never be forgotten if you want your gambling business to start bringing income from the very first day.
A preparatory stage is, first of all, a step-by-step strategy that will help you to understand how to create a casino, taking into account all possible risks.
A business plan for a casino should include the following aspects:
- Overall assessment of the situation on the market.
- Analysis of competitive proposals.
- Making-out of a preliminary estimate of expenses on the launch of a project.
- Consideration of all possible scenarios (from positive and neutral schemes to negative ones).
At the preparatory stage, it will also be a good idea to decide on the main operation mode.
About the Types of Gambling Platforms
Each option has a unique set of advantages and exclusive features:
- Browser platform is a gaming site, for the launch of which it is enough to visit a certain web page. There is no need to download and install additional software: all games can be played directly in the browser window where there is also a set of management systems for slot games, a personal account, payment services, support chat, and other components of a traditional online casino.
- A downloadable application is a practical and functional alternative to the browser versions. Among the advantages of this platform, we can highlight the increased level of security, protection of personal data of users, and a wider range of game settings. As a rule, the downloadable product provides access to a more extensive catalogue of entertainment.
- A mobile service will be one of the most popular trends of the industry in 2020-2021 (we will talk more about the latest market trends later in this article).
- Decentralised platforms that are built on the basis of the blockchain technology are another bright element of the online industry. This unique way of creating gambling systems allowed programmers to achieve absolute transparency of all internal processes and significantly increase the level of confidence of the audience.
A Few Words About the New Industry Trends
Analysing the proposals of competitors, it is impossible to ignore the latest industry trends. Today, no one will be surprised by traditional “one-armed bandits” and bright three-dimensional graphics ― every day, the audience expects new products and creative ideas.
If an operator wants to start an extremely profitable business, he will simply be obliged to take into account several trends.
So, the future of virtual gambling is represented by:
- The augmented and virtual reality technology provides an ability to play in a completely new way. The main momentum for the popularisation of this sphere was the rapid development of new technologies the fact that they are available everywhere. Today, to feel the full variety of emotions from visiting the largest casino in the world, it is enough to buy special glasses (a modern gadget) and launch the corresponding program.
- A mobile format is one of the most promising activity areas in the modern market. According to the information provided by App Annie, by the end of 2019, the mobile segment will take more than 60% of the global gross margin from online gambling. The industry shows a stable annual growth of 17.3%. According to forecasts, by 2022, the turnover of the mobile sector will exceed one hundred billion dollars.
- Blockchain and virtual money are a unique way to run your own business without the unwanted attention from the authorities. With the help of the decentralisation technology, anyone can organise their own gambling platform that will consist of a chain of separate information blocks. Each of the components is available to any user of the Internet and guarantees absolute transparency of all internal processes in the gambling establishment. If we are talking about cryptocurrency, then this is a new showcase of the global financial market. Virtual money allows you to make payments without commissions and carry out instant transactions with any sum and without the risk of being tracked or that the game session will be interrupted.
- The new game format. As we have already mentioned above, the new generation of players always wants new bright products and exclusive offers. With each day, traditional fruit-themed slots are more and more often yielding the palm to the creative branded entertainment, skilled games, live broadcasts, and other market solutions. Now, the entertainment is a creative storyline with several additional levels, and the victory depends not only on luck but also on the user's skills.
The business project and the basic work strategy are ready, the market proposals have been studied, and it is time to start legalising your project.
First of all, we are talking about the acquisition of the status of a legal entity (registration of a company or a unique name).
This procedure also includes:
- collection and preparation of documents that confirm the identity of the founder and its financial solvency;
- registration of the enterprise in the necessary authorities;
- office lease and recruitment of staff;
- opening a bank account for meeting the needs of the enterprise.
After the company is registered, it is time to deal with the casino licensing procedure. Due to tight control of the government and bans on the organisation of the gambling business, the best option is to buy a license in foreign offshore jurisdictions.
The presence of a license is mandatory for gambling operators since it guarantees the stable operation of the platform without the unwanted attention from governmental authorities.
The presence of a license not only makes your business legal but also opens up the following perspectives and advantages:
- the possibility of doing business with international partners;
- access to proven banking institutions around the world;
- increase in the level of the users’ loyalty;
- the possibility of cooperating with the world's largest software vendors;
- quick entrance to the international arena.
|Top five gambling jurisdictions in 2019-2020|
|Offshore name||Cost of services||Additional information|
|Costa Rica||The initial execution of documentation will cost from forty thousand dollars, and the annual maintenance ― ten thousand dollars||
There is no taxation system on the offshore territory, and operators get an opportunity to interact with American users.An additional advantage is the absence of requirements for financial reporting and the location of servers of an enterprise
|Malta||The initial payment is twenty-five thousand dollars, the application processing costs two thousand three hundred dollars, the minimum annual maintenance is from fifteen thousand dollars, and the extension of the service ― one thousand five hundred dollars per year||Operators are obliged to open a representative office of the company within the territory of the jurisdiction. Offshore is considered the best option for those brands, the main goal of which is to enter the European market|
|Curacao||The down payment ― from forty thousand dollars, and the annual renewal ― fifteen thousand||
The license can be used by several affiliated companies at the same time.A disadvantage here is that an operator gets the right to use a sub-license and, accordingly, in addition to the established state fees, he should pay commission fees to the holder of the main document
|Belize||The minimum price is from eighteen thousand dollars, and the renewal of a permit costs ten thousand dollars||
A permit allows you to organise any type of gambling because the document is issued for all kinds of entertainment for money with a single flat-sum tax.The disadvantage is excessively tough requirements for applicants and the need to provide financial reports for the previous three years of the company’s operation
|Kahnawake||The down payment is forty thousand dollars, a mandatory set of services for checking the compliance of software with all requirements ― fifteen thousand dollars, and annual maintenance ― from ten thousand dollars||
This jurisdiction has granted licenses to more than two hundred fifty foreign companies. It has created a reliable security system and is one of the most reliable offshore.The disadvantages are: excessively tough requirements for the applicants and the fact that the authorities have the right to revoke the license at any time
Budget planning is one of the most important stages, regardless of the format of a project.
If you have your own online business, especially when it comes to starting from scratch, it will always mean the necessity to provide significant investments. At the same time, no other industry has such a rapid turnover and fast payback of projects.
Experts recommend entrepreneurs to start working on budget planning even before the official launch of the gaming site and cover at least the first year of operation.
We offer you a rough estimate, which you may find useful during the organisation of your own business:
|Financial costs before the start||Investments during the first year of operation|
|Registration of a company||3-7%||Management of the company||5%|
|Legalisation of a project||10-30%||Acquisition and renewal of a license||1-10%|
|Purchase and integration of software||25-30%||Support for software components||10%|
|Recruitment of staff||10-20%||Commissions to providers||5%|
|Advance advertising||15-20%||Comprehensive advertising campaign||50%|
|Other expenditure items||5-15%||Salaries of employees||20-30%|
There is no standard value for the implementation of gambling projects. The final price of a gambling platform depends on many factors, for example, the availability of downloaded applications, the popularity of the software vendor, the amount of money doled out for casino marketing, and much more.
The only thing modern developers and other suppliers of gambling products agree on is the cost of promotion. At least 50% of the estimated revenues of the casino should be spent on the advertising of a new service. Usually, with the right approach and sufficient investment, the website pays its way and begins to bring net profit after two-six months of operation.
Software for the platform is one of the key factors that affect the success of the entire company.
Among the necessary components of the software that help operators to control the gambling platform, we can point out the following:
- The project content management system.
- Elements to control users’ actions.
- The control system of bonus programs and promotions.
- Interface for tracking manipulations with payment services.
- The built-in content management.
- Payment systems.
- A set of tools for generating reporting documents.
- A set of options for administrators.
- Affiliate service.
- The system for combating fraud.
- Mail service for the retention of users.
It is worth noting that in the standard package of services of the provider, there is not only the set of software that is mentioned above but also services for the further maintenance and technical support. Accordingly, a reliable supplier is responsible both for the operation of software systems at the time of launch and for their condition after the official launch of the site.
Please find hereby some useful tips on how to choose the software.
Before the outright purchase, it is necessary to pay attention to the following factors:
- Certificate of quality. To test their products, the world's leading suppliers use the services of special independent laboratories. Their decisions are considered to be a guarantee of quality and a great way to emphasise your unblemished reputation.
- Picture. In 2020-2021, a bad picture is a sign of a bad taste. It is no longer possible to surprise modern customers just with high quality and rich colours. Today, not only 3D technologies are being introduced everywhere but also unique systems for broadcasting images in the virtual reality mode.
- The adaptability of the platform. As we have mentioned above, global traffic is gradually capturing the mobile market. Therefore, most of the largest manufacturers present their new products in the mobile format, and only after the official release, providers adapt the content for traditional services.
- Feedback. Having decided to purchase software from a particular vendor, it is recommended to find as much information about him as possible. And not only the opinions of partners are important but also the feedback provided by gamblers.
The time required for launching the website depends on both the software vendor and the website owner. As a rule, the purchase, installation, and configuration of software components take about two to three months. The same amount of time will be spent on project licensing and the creation of a gaming site itself (here, we mean the design).
The only thing that operators can do to speed up the process is to provide regular feedback on all technical and administrative issues and resolve them quickly.
We strongly believe that it is unwise to start working until the following stages are passed:
- acquisition of a license;
- registration of a bank account for the storage of the authorised capital;
- signing of agreements with suppliers and providers;
- execution of contracts with affiliate services.
If the online business is launched from scratch, all of the issues that are mentioned above remain the responsibility of operators. The time required for launching the website and reputation of the future company directly depends on the speed and quality of their decisions.
A key to the success of the largest gaming sites is not thousands of casino games or an extraordinary design. As a rule, the best international services attract players with rather laconic design, and in the catalogue of such websites, there are rarely more than forty or fifty games.
The main reason for the widespread appreciation and recognition is the implementation of a well-thought-out marketing strategy. Effective promotion consists of many nuances, among which there are several main ones.
We do not recommend you to take on the role of an all-knowing and all-powerful leader and try to independently study the industry and draw up a detailed plan without outside help, especially if you have no experience in this field. Your best option is to contact a team of competent specialists with a list of already implemented projects.
Another principle is that “something big starts with something small”. Do not choose quantity instead of quality. It is better to start a business with several games (for example, a dozen or twenty) but to present products that cannot be found in any other gambling establishment. For example, nowadays, it is impossible to surprise anyone with fruit-themed slots. There is no need to offer a whole line of slot machines of the same type if you can focus on branded games the outcome of which depends not only on luck but also on the user's skills. Moreover, when choosing the game content, you should pay special attention to the software in the HTML5 format. A unique programming language has opened up completely new horizons for the developers.
Preliminary Advertising Campaign
Many beginning entrepreneurs think that preliminary marketing is not so important and consider this service unprofitable. However, a good trailer is a convenient and easy way to attract the attention of the potential audience and make customers wait impatiently for the project to be released.
As the most convenient tools for preliminary advertising, it is worth noting presentations in social networks, advertising banners, posting of news, blogs, and reviews of certain products on thematic resources.
Marketing After the Entry Into a Market
Marketing via social networks is a convenient and easy way to attract the attention of the target audience, increase brand awareness, and reach as many potential customers as possible.
A thematic page in social networks is one of the most popular marketing tools. And this is not only about the gambling industry but also about other business areas. One of the constant advantages of this option is the opportunity to create the most friendly and relaxed atmosphere for interaction with clients. Communication in an informal setting subconsciously causes more trust and can be a great opportunity to multiply traffic with the help of the “buzz marketing” effect.
SEO optimisation is a large-scale complex of thematic actions aimed at putting the promoted website into the first lines in the largest search networks. The main goal of the tool is to increase the traffic and the attendance of the resource.
SEO promotion includes the following tools and services:
- Internal adjustment of the game portal (work with the content, the introduction of queries with keywords, development and implementation of a site map, the use of internal syndetics, and so on).
- Interaction with third-party services (purchase of links on external resources).
- Work on maintaining the achieved indicator and subsequent systematic improvement.
The term “CRM systems” means “customer relations management” in the seller-buyer format. This tool is a multi-level set of components, which is aimed at the detailed study and analysis of the needs of the audience. The use of this complex improves the level of service of the website and greatly simplifies the management system.
The use of CRM allows you to:
- automatise all types of relationships between operators and players;
- get access to a systematised customer database in real-time and regularly update current data;
- increase the efficiency of customer service;
- control the percentage of sales;
- increase the level of satisfaction of those players who visit your gaming site;
- build a relevant web of relationships with staff.
A huge advantage of the tool is an ability to organise other marketing tools, such as mailing campaigns, promotions, centralised management of an advertising campaign, and more. This system is a way to control most of the internal processes of the casino and process all external information for the further development of strategies to increase profits.
Mailing campaign is an inexpensive tool that has proved its effectiveness. The main thing is not to confuse advertising and newsletters with annoying viral spam. Letters are sent exclusively to the interested users who agreed to receive notifications.
An original feature is that operators can choose for letters any topic, without being limited only to notifications about new promotions. This could be the advertising of a new game, a detailed review of the methods and strategies of famous gamblers, data collations, and much more.
Affiliate services are the basis for the interaction with affiliates (these are third-party resources and specific individuals that are paid for attracting new clients to your gambling establishment).
Among the most famous and reliable affiliate programs, we can name the following:
|Top five affiliate programs for gambling projects|
|Name of the service||Brief description|
|Welcome Partners||The program allows you to earn up to 60% of the revenues of a casino for the attracted user and up to two hundred dollars for an active player. In the catalogue of the service, there is a wide range of options: from banners and landings to bonus programs and exclusive events that are organised on an individual order. Moreover, there is a detailed statistical summary and a whole range of specialised filters for analysing traffic and tracking other actions|
The negative balance is reset every month, and a detailed statistical summary of the five main accounting criteria is provided (the information is updated every half hour). The service is ready to pay from 25 to 40% of the revenue of the gambling club and up to one hundred fifty dollars in the case you want to work on the basis of the CPA model
|VIPAff||A unique feature of this affiliate program is interaction with any kind of traffic. Customers can receive up to 60% of the revenues of the casino and about 30-100% for the first deposit of the attracted player. Payments are made every week, and a request for more frequent withdrawals is also available. Besides, the system provides an internal reward for the active attraction of referrals ― 5%|
|7StarsPartners||The service offers lifetime commission charges from such partners as YoYo Casino, Buran Casino, and Malina Casino. The payout rate can reach 60%|
The system provides four options for profit-making:
Promotion of the gambling platform is not limited to the attraction of new audience and expansion of traffic. Some of the tools are aimed directly at retaining active clients. And loyalty programs are rightfully considered to be one of the most popular and practical methods.
Among the variety of money rewards, we can name the following:
- Bonuses for the registration.
- The reward for clicking on the link.
- Bonuses for the first deposit.
- Money or points for participation in certain games and tournaments.
- Seasonal and thematic promotions.
News and press releases are a useful tool that can be used both within the casino and on external resources. Any occasion will be suitable for a news feed, starting with reviews of the latest gaming innovations and ending with reports on the biggest winnings or thematic promotions. The main thing is to constantly update and frequently post unique information.
We tried to collect the most detailed information on the launch from scratch. Our team has described the most significant aspects of work and all possible “pitfalls”. It is time to get acquainted with alternative options for entering the gambling arena.
The casino franchise is a convenient and economical way for operators with a limited initial capital and people with minimal experience. A franchise agreement is a casino rental with a fixed set of products, an already operating support service, an established marketing program, and legal support.
One of the constant advantages of this choice is the absence of the risk of paying out big wins. All payments for jackpots and other big prizes are made by the parent company. Operators deal only with payments of small wins and the provision of promotional programs.
Disadvantages of a franchise:
- Total dependence on the franchisor and the fact that any additional service or changes in the provided set of components should be paid separately.
- Typical products (operators get a standard set of games and a template design).
- The need to pay commission for being able to use the provided set of products.
This is one of the riskiest options that attract people with magic words “for free”. We strongly recommend you not to choose such an unreasonable and even dangerous acquisition. It will be good if you just become the owner of an unviable code but there is a risk to open access to a personal device for the malicious software that can cause huge damage.
Also, you should not forget about such additional expenses as the compulsory licensing of a project, the need to adapt the script for personal needs, the development of a unique design, and casino marketing.
Gambling Establishments on a Turnkey Basis
This is the most practical and reliable way to enter the market with minimal investment and time expenditures. If it can take from six months to several years to start the business on your own, then cooperation with an intermediary will only take about two-three months (depending on your wishes as a client).
If we are talking about the financial matter, the price of the ready-made project will be several times less than the price that you will have to pay for starting from scratch.
The turnkey service includes the following set of components and solutions:
- Individual design of the website and a few sketches of the future logo of the project.
- Integration of the game content (we are ready to offer you a wide range of ready-made solutions and several exclusive developments).
- Payment systems for casinos (there is also such an option as the connection of bitcoin wallets).
- Development and implementation of unique loyalty programs.
- Provision of technical support.
- Provision of protection systems.
- Free updates of the system.
- Legal backing of the project (assistance in the collection of documents for the registration of a company, support in the process of business legalisation, consulting services, and resolution of issues that may arise during communication with users).
As a result of the cooperation, you will get a project with excellent content and a unique design that is completely ready to be launched. At the same time, operators receive complete freedom both in the management of the service and in the choice of tools for its promotion.
Our team is also ready to offer you a list of additional services:
- development of projects using blockchain technology and connection of cryptocurrency wallets;
- implementation of mobile applications and downloadable services;
- production and integration of the exclusive HTML5 game content;
- connection of betting products;
- integration of software for live broadcasts;
- comprehensive promotional marketing with a guarantee that the project will pay its way in three-six months after the launch.
To organise and launch your own gambling project is a difficult task that requires vast knowledge in various sectors of the economy, law, IT-technologies, and advertising.
Cooperation with 2WinPower is a convenient alternative that allows you to avoid a lot of problems and significantly speed up the process of entering the market.
We have enormous experience in the most highly profitable and competitive field and are ready to offer you a full range of products and services, which guarantee that a gambling platform will be successful.
Our team deals with the modernisation and promotion of the existing resources, offers relevant solutions for thematic affiliate services and takes responsibility for the development and launch of turnkey projects.
We always have a set of products for classic services, current offers for bitcoin and blockchain casinos, a large selection of software and products for bookmakers. Moreover, we can offer personal developments that have passed certification in the largest gambling laboratories.
We guarantee the highest quality of all our solutions.
Merge into the 2WinPower family and start your own gambling project already today!