In an era of global pandemics, failing brick and mortar businesses, and economic downturns, a recession-proof online business seems like a no-brainer. With incredible growth seen and projected, the iGaming industry may be one of the best picks for a new online startup.
The Covid-19 pandemic has kept millions in their homes for over a year, significantly increasing online gambling participation. The audience is out there, the market is healthy, and it seems like new operators are emerging every day. All that’s left is to jump in and become one of those successful operators.
So, what does it take to start an online casino in 2021?
A business plan
Starting an online casino may be simple, with only a few steps involved, but it is certainly not cheap to do. As we’ll learn later, the costs of starting an online casino can be quite steep. We’re talking about $1 million at a minimum.
When starting any business venture you need a business plan. Where are the startup costs coming from? Will you need investors? What does the first year look like, and what will the business look like ten years from now? Specifically with an online casino business: how many servers will you need? What about IT support?
There are a thousand things to look for and even more that you haven’t even thought about yet. It’s a good idea to sit down with a business consultant before you even begin and set the groundwork for success with a long-term business plan.
A target market
Online gambling is an industry in which billions are made every year. But in order to get your piece of the pie, you need to find and focus on a target market to make sure you’re able to get customers in the door, once your casino is open for business.
Getting your name out there is incredibly important in the beginning. You need to make it into the HeadlineCasinos top 10 and other ‘best of’ lists if you are to stand a chance of picking up players.
Marketing and promotion
One of the main keys to success in this business is having a robust marketing strategy. The best place to start is to do some rigorous research on your competitors.
Determine who the industry leaders are and take a look at how they promote their offers, develop their brands, and what kind of return on investment they are able to achieve.
The technology you decide to use for your online casino may be the deciding factor of whether or not your business succeeds.
It goes without saying that you’ll need a beautiful, functional, and easily-navigable website as well as a dedicated server to accommodate your customers. Beyond these, however, obtaining the best software (and software provider) for your needs is crucial to a well-run online casino.
Professional iGaming software
Make sure to do your research before taking the plunge with your new business’s iGaming software. There are plenty of great providers to choose from and a wealth of options for online casino games as well.
It’s a good idea to have software that will support a wide variety of games, easy navigation, uncomplicated management settings, and the option for affiliate programs in order to make the most of your software partnership.
The top online casinos in the world are considered virtually unhackable and harder to break into than Fort Knox. This is a must when considering starting your own online casino. Luckily there’s a host of top-tier software, and if you work with the major iGaming software companies you’ll have access to the best games with the most secure software. This is one area where you absolutely cannot skimp.
Once you’ve decided on the territory of operation of your new online casino business, you’ll need to apply for a gambling license. This can be one of the most expensive startup costs in the whole process and will vary, depending on the locale you choose.
Many new online casinos opt for incorporating offshore, saving thousands of dollars per year in licensing fees. Wherever you choose to house your business, make sure to stay on top of the legalities, properly licensing your business, and keep up with the ever-changing regulations surrounding this industry worldwide — your profits will depend on it.
A safe bet
The online entertainment industry is booming and online casinos were the second most popular form of online gambling in Europe, accounting for 32% of the market share in 2018. There’s no doubt that there is plenty of interest, a global audience, and a lot of money to be made in the online casino market.
When it comes down to it, the main thing you really need to start an online casino in 2021 is capital. With the funds to get the best technology, the proper legal licensing, and a stellar marketing team, success with an online casino business is definitely within reach.