The online casino industry is absolutely booming around the world and with a growth rate of 13% and predictions of the market reaching $92.9 billion by 2023, there’s no better time to jump into the game yourself. The process, however, is not for the faint of heart. It takes creativity, drive, and a lot of startup capital.
If you have what it takes, there are some amazing opportunities to be had in this industry, Here’s everything you need to know to start your very own online gambling company in Australia.
Is online gambling legal in Australia?
Before we get started, this is an important question to answer. The legal online gambling situation in Australia is a bit complicated. Policy and laws surrounding gambling in Australia are under the purview of the states, rather than the Commonwealth, making each state the authority on its particular rules.
Each of the betting services, like sports betting, that are legal in Australia are all handled by individual provinces or territories, so it all depends on where operators decided to set up shop. Each one has similar rules but you’ll need to contact the individual states & territories to apply for the proper license.
Existing law (i.e. the Interactive Gambling Amendment Act of 2017) prohibits Australian casinos from providing gambling services to Australians. As it stands, unfortunately, a lot of online gaming activities are actually illegal in Australia. These are the traditional games of chance players would normally associate with a casino like slots or blackjack type games. There’s not a lot of options for a full-service online casino for Australians.
There is however a loophole. Operators in the northern province are allowed special licenses to operate these games from Australia, as long as the gaming services are offered to customers outside of Australia.
Step 1: Licensing
This is the trickiest part of the process, but it’s also the most important. In order to run a profitable online gambling business in Australia, you must register your company and obtain a proper gambling license, issued by the local regulatory authority of the area.
It is up to the discretion of the authority itself to approve an application but once you’ve been approved, the license covers all gambling operations including igaming service providers, network operators, affiliates, white label operators, and egaming software suppliers.
Provided the online gambling services you offer are only offering services to individuals outside of Australia, this type of license covers all types of games of skill that are prohibited under the Interactive Gambling Act of 2001.
Besides maintaining a legally protected and legally conducted business, another good reason to obtain licensing is to attract more business. Licensed websites are more trusted by players and the gambling community in general, building a solid reputation for your company from the start.
Step 2: Technology
As with any online gambling venture, technology is a key sticking point. Operators will want to sign with one of the major gaming software companies. They’ll have the necessary security and encryption required to pass Australian regulations, and they already have a major presence with Australia making them the go-to choice.
Look into the major companies like Spigo, Rival, or Evolution Gaming. They’ll have the software ready to go, and they’ll already be familiar with Australian requirements, making it easier for you to get up and running. Having an excellent software provider will help your business run more smoothly, offer your customers the best variety of games, and keep you competitive in a challenging and cutthroat market.
You’ll also need your own private server to boost the success of your business. Choose a quality server that offers stability, scalability and, most importantly, security.
The last thing you’ll want technology-wise is to be certified by an independent auditor. They’ll check your systems and ensure that everything is up to standards and give your player base the peace of mind that you have their security at the forefront of your business.
Step 3: Financial
When it comes to starting an online casino in Australia, banking is another important factor to make sure you do correctly. After obtaining a proper gambling license in Australia, you will need two main banking services: a merchant account and a corporate account that are friendly to gambling services.
Step 4: Marketing
One of the main keys to success in an online gambling business is building a robust marketing and promotional strategy. This is where a good portion of your budget will go — and it’s an absolute must to get your company off the ground.
The hardest part of the process is competing with some of the best AU online casino sites that are already established. However, once you learn the ropes and implement a strategic marketing plan, you’ll soon be one of them.
A good idea is to look at other industry leaders to get an idea of how they promote their offers, and develop their brands.
With a clear strategy, cutting-edge technology, licensing, and strong financial backing, you are well on your way to starting a successful online gambling company in Australia.