Fundamental Financial Guidance

Andrew Price
Posted by Andrew Price
2WinPower Partner, owner of the gambling establishments network.
Updated: 20/05/2020

The knowledge of an efficient online casino setup is a perfect theoretical background for every new operator. However, you should also be aware of the expenses that you will have to bear during the establishment process. Apart from the setup fees, several other deductions are also integral for the flawless organizational process.

The experts from 2WinPower are glad to introduce a detailed description of all the payments and rebates that you will face while setting up your online gambling platform.

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Establishment Fees

Establishment fees

The cost of each individual platform is going to depend on the operational model and the offered services. The total price will usually consist of the following points:

  1. Setup fees. These are the money for the platform establishment that typically range from approximately $30,000 to $300,000. Mostly, it depends on the jurisdiction, the regulations it offers, and the efforts to get to the international market.
  2. Monthly revenue share. It is going to be generally calculated as a percentage of GGR (often seen to be in a range of 3-5% from GGR in the minimal Platform Services model without customer fees).
  3. Monthly minimum. The income protection insurance that keeps providers from low earning.
  4. The monthly fees for specific services usually include the cost of development and payment for the additional platform modules.

Gaming Content Fees

When it comes to gaming content, there is no range. Usually, it consists of a GGR percentage that may vary significantly:

  1. Monthly payment as a percentage of GGR that ranges from 8% to 15% at a specific game. Of course, depending on the providers, it may be lower or higher than the indicated numbers.
  2. Integration fee. New operators will find it particularly helpful since the provider deals with the installation of their software, minimizing the risk of any possible malfunction in the future.
  3. Jackpot contribution. This amount is usually calculated as a percentage of wagering in games with the possibility of winning a jackpot. The ranges can vary from 0.5% to 1% of the wagers that are put on specific apps and stored aside for the jackpot.
  4. Premium content may require a higher revenue share of integration fees. These usually include branded games and uniquely designed content for your platform.

Money Transferring Fees

Payment processing is usually calculated as a percentage of deposit and withdrawal transactions.

The US online gaming and marketing consultant expert explains:

It is not derived from GGR but rather a reflection of money transferring processes that are happening with a provider. Depending on the market, you may notice that the percentage varies by payment solution. However, the average range is between 1% and 5%. Depending on the challenge and risk to get the deposits on the platform, the percentage can be even higher. On the regulated market, it will be of a much lower range.

Tax Deductions

Tax deductions

Sometimes, there are cases when operators ask for tax deduction from the software providers. A modern operator is obliged to pay for a lot of things. These days, taxes are considered a part of your balance but go neither to casino owners nor to providers. Therefore, it is a common experience to deduct them. Usually, it is reasonable for the content supplier to subtract the amounts that are proportional to the popularity of the game played on your platform.

Sometimes, some providers may charge more for European customers (about 15%) than the Asian audience (about 10%). The reason for that lies in the cost to get to the particular market. In many non-regulated markets, the content does not have to go through a lot of certification processes.

Moreover, the provider does not even have to be licensed. In regulated markets, there are a lot of extra costs of getting to the audience. Besides numerous certificates that the provider must be up to, they also should own a B2B distributor license.

On top of that, the gaming content also must be certified, meaning some deductions are made to the test labs. There is also an additional cost that will appear, depending on the jurisdiction. Some markets require a content provider to host games within a country of location.

As a result, you are also obliged to pay to the data centres and for the hardware just to be able to participate in the market since the access can not be granted through the cloud remotely.

Comprise All the Payments with 2WinPower

Payment precess

Nowadays, even experienced operators may find it hard to embrace the entire range of the financial situation around their platforms. No wonder that they hire professional teams of economists to help them deal with all the payments that are necessary to maintain a beneficial operational process. New entrepreneurs who are planning to set up their own online casinos definitely need high-quality assistance to ensure they move in the right direction.

2WinPower offers you to order a convenient turnkey business solution that will allow you to forget about all the worries, including the payments issues that consist of:

  • establishment fees;
  • gaming content fees;
  • money transferring processes;
  • intricacies of the taxation system and special deductions.

Do not hesitate to resort to professional help since it will save you a lot of time and resources in the long term. Just reach our responsive support team and inquire about anything you might be interested in.

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