Guide on Building Your Online Casino Business in 2021
During this pandemic, many industries need to rethink their games to readjust to the new normal standard. It leads to many bankruptcy and failure. On the other hand, some industries are growing faster than before. These industries relate hugely to the digital world of Internet and technology. Some of those growing industries are e-commerce, professional cleaning services, and home fitness equipment. Aside from that, the online casino business is also one of the most rapidly-growing industries during the pandemic. Let’s take a look at the online casino industry here.
Online gambling is one of the fastest-growing industries in the world. Online gambling is becoming increasingly popular and has seen significant growth in both Europe and Asia this year. In Malaysia and China, online gambling is almost twice as popular as online shoppers. Nearly 43% of Chinese Internet users gamble online, while only 16% say they shop online. Of course, the online casino business is a huge deal and profitable.
Reasons You Should Build an Online Casino Business
Online gambling revenue grew from $800 million to more than $2 billion in 1999, and the online gambling industry is expected to reach $16 billion by 2010. Andrew Burnett, an analyst with Merrill Lynch in London, believes online gaming will generate more than $150 billion in revenue by 2015. Due to the huge capital investment, acquisition of gaming licenses, and other legal hurdles, small businesses have not entered the gaming industry. All these obstacles have disappeared with the Internet. Online casinos, sports betting, and multiplayer poker rooms can be managed and advertised by you. You can generate the income you have always dreamed of.
Three Options to Start an Online Casino Business
These are all great reasons to start your online casino, especially in light of the pandemic. Here are the three best ways to get started with an online casino.
Exclusive Method
All of the software needed to create and implement a gambling site, such as a casino, sportsbook, or multiplayer poker room, can be designed and implemented by you. This could cost you millions of dollars. To operate an online gambling business, you need a gaming license. Most governments require this license. You remain in full control of your gaming site and the source code of your gaming software. A gaming software company is not entitled to any royalties.
Regular Method
You can become a licensee of an online gambling software provider. This is an affordable way to start an online casino business. You get all the software and equipment that you need. This option is very popular for both entrepreneurs and licensed land-based businesses. Licensing costs can range from $30,000 to $350,000. Licensing fees are around $150,000, which usually include marketing costs. In most cases, a license fee is paid to the software vendor as a percentage of monthly revenue (gross profit). Most gaming software providers have a payment processing provider (merchant account provider) to complete turnkey operations.
Most Affordable Method
You can become a sub-licensee of an existing licensee. This is the cheapest way to start an online casino. Prices range from $5,000 to $60,000, and sub-licensees are responsible for all marketing activities and receive a smaller percentage of the license fees than full licensees.
Legality and Licensing of Online Casino Businesses
Online casino and poker room operators must apply to the sovereign governments of the countries that allow online gaming—these issue licenses for the operation of legal online gambling activities. Casinos and poker rooms register online gambling activities, allowing them to obtain significant licensing fees and tax revenue. Online gambling will be a lucrative business opportunity in the 21st century as Internet use increases worldwide.
