Owning an online casino is a profitable business which has continually grown into a huge industry over time. Reports from coherent market insights indicate that the gambling business will grow by 11.5% annually for the next 7 years. In fact, even now, there are a lot of business owners who enter this field due to its massive potential of bringing great profits. On the other hand, since it is a viable and growing business, it requires big capital and comes with a bunch of expenses. In addition to that, you should also note that the competition and the legal jurisdiction for this market are relatively high; hence it requires a large financial input.
In this article, we will cover everything that has to do with the cost of starting an online casino business. Keep in mind that just like in any other industry, it is highly possible to have a great profit from the Gambling business, but only if you use your capital to the right places. To ease your job, we won’t only be talking about the cost of starting an online casino but also explain how to effectively utilize your capital so that you can have maximum profit.
Here is the list of most vital expenses for creating a gambling business:
Licensing gives gambling businesses the rights and resources to design and market their online casino in a given hosted country. It also allows other companies to utilize trademarks, copyrights and designs for a stated price. However, getting a license for casino business requires a lot of money and it can range from $15000 to $40000 or more depending on the location, processing fees and other recurring fees of the business. Despite the big price, you should take into account that this document will allow you to legally run & operate an online gaming platform and generate vast profit from the gambling activities.
Benefits of licensing
- Most gamblers are attracted to licensed online casino platforms because they do not want to be scammed or illegally deprived of their profit. Also, having an unlicensed casino business can potentially put you into trouble with legal authorities.
- Getting a reputable and reliable gambling software provider in addition to having an authorized licensing because most software providers are drawn to businesses that are well-grounded in legal functioning. Software providers are also very protective of their reputation and won’t want to work with a casino that has no licensing, which can be a major problem.
- Another important benefit of licensed casinos is that they easily earn the trust of the customers and typically generate more profit due to the fact that players feel more secure to gamble on platforms that are licensed.
Registration as a legal entity
A legal entity includes all businesses that are under the jurisdiction of the law; which means, they have both legal rights and responsibilities. The advantage of this is that it enables you to have legal foundation and protect your assets from lawsuits and regulatory consequences.
Without a legal entity, you won’t be able to open a business bank account, obtain a license, partner with casino software providers and get other credible services like payment platforms and other similar products. When registering as a legal entity the best practice is to do this in the country you got your license from.
|Cost of registration
|Time of registration
|1 to 24 hours
|Within two working days
|2,850 + euros
|Within three weeks
|Within 5 days
The table above shows the initial cost that you need to pay to register your business as a legal entity. Note: this cost was compiled as of March 2020. Other costs will be incurred depending on the type of legal entity you opt for. To get a better understanding of the registration processes, check this link.
Online casino website
Before your online casino business can function, you have to get a top-notch casino website, which must be efficient and user-friendly to drive customers into your business. The first thing your customers see about your business is your website, its visuals, interface and the comfort of usability. This is a highly important factor, which shouldn’t be overlooked or else your casino might fail in the long run. When it comes to the cost of getting an online casino website, the price can range from 10,000 to 20,000 dollars.
Here are some vital characteristics that a top-notch casino should have:
- A suitable experience & user-friendly design
- Modern design & engaging graphics
- Easy & fast navigation
- Technical SEO tools
- A well-optimized content showcasing your business features and characteristics.
We know that doing all this can be a bit stressful; so if you want to ease your work and get a professional online casino website, you can hire a company who specializes in that.
Casino gaming software
After getting the website, the next thing in line is to get a reliable gaming software provider to supply your business gaming software. For those who are new to the industry, software is the most important aspect of your online gaming platform; thus its functionality, reliability and design must be excellent to be able to attract plenty of new customers. Be sure to check out https://trustedcasinos360.com/reviews/casineia/.
Generally, an online casino requires at least three types of programs which include the following:
- A casino Gaming platform: this program is meant to manage and create a user account for your customers; it is a very important feature as it gives users the right to utilize your online casino. Prices for this program can range from 10 to 500 dollars depending on your software provider
- Games slot: Game slot houses are the ones who make the games available to your users. Typically, the game slot software is sold along with the gaming platform program delivered by software providers; however, it can also be bought separately for 200 to 5000 dollars per game. It is often advisable to get the one delivered by your software provider.
- Payment platform: These are solutions and tools for initiating payment between the players and the gaming platform. The most well-known suppliers of payment solutions are: PayPal, Visa and MasterCard, WeelPay, Instacoin, Netteller etc. They charge $20,000 per month for one gateway.
In conclusion, other factors like market promotion, maintenance and advertisement are the other vital expenses, which can also be handled within the price of 20,000 to 150,000 dollars per month. In total, the cost for starting a casino business may be high but the profit you gain will exceed the cost enormously, and it will surely be worth your investment.