The online gambling industry is booming and attracting millions of people. That’s why it’s the best time to choose a trustworthy Australian casino at https://www.aussiecasinoreview.com/ More and more providers are pushing into the market and outbid each other with expensive advertising campaigns. So it is hardly surprising that many feel the desire to open their own online casino and benefit from these positive developments.
But how does starting your own online casino even work? And what costs does every founder have to expect? The following article shows you five simple steps to opening your online casino, with all the details about the license, costs, and appropriate marketing measures.
Step 1: Create a Working Business Plan
In general, it is possible as a sole proprietorship to open an online casino. But as with any other business idea and start-up project, you also need a business plan for your online casino. In this business plan you should describe the following points in detail:
- The specific goals for your planned company.
- The business concept with a convincing unique selling point.
- Your chosen type of business and possible co-founders.
- Your qualifications and skills to be able to open an online casino.
- Market analysis and an overview of the competitive situation in the market.
- The financial plan with all possible costs and expenses.
A large number of online casinos have emerged in recent years, which is why the competition is already very fierce. It is therefore crucial not to join the mass of online casinos, but to develop a special concept. This includes, for example, a special design, but also the focus on certain offers or a special profit principle.
Step 2: Plan the Financing
Even if the financial plan is part of the business plan, you should look directly for suitable financing in the second step. This is because normally you cannot pay the high costs of opening an online casino yourself.
Overall, the following costs arise at the online casino opening:
- A suitable casino software that provides games = 200,000 to 350,000 dollars;
- Costs for a reputable and functioning website = 10,000 to 70,000 dollars;
- The fees for a license = 100,000 to 175,000 dollars;
- Payouts in the first few years = 200,000 to 500,000 dollars;
- Marketing measures = 50,000 to 300,000 dollars.
In the end, this creates start-up capital between 560,000 to 1.4 million dollars, which can be covered by investors or loans. So if you want to open an online casino, you should look for investors early or arrange a meeting with a bank. Also, note that your online casino will only break even after two to three years and finance itself.
Step 3: Apply for a License
Once the financing is fixed, one of the most difficult challenges follows, because now you need a suitable license for your own online casino. You cannot legally operate your casino without a valid EU license. However, there is a so-called gambling contract in some countries. This contract states that games of chance, with the exception of horse betting, may only be operated by the 16 state lottery companies. It is therefore advisable to obtain the required license from so-called off-share countries, like Costa Rica or Malta.
When planning your own online casino, you must allow a few months for the license to be granted.
Step 4: The Technical Implementation
When opening an online casino starts, you should first determine the scope and structure of your website. This can be done by analyzing which games of chance are most popular and in-demand at online casinos. The competitor offers also provide a good overview so that you can find out about all feasible games of chance.
The selection of possible games of chance for your online casino is also so important because it decides the choice of the right online casino software. The largest providers of casino software currently include NetEnt, Playtech, Microgaming, Real Time Gaming, Novomatic, and Cryptologic. Therefore, compare the individual offers and determine your focus. Once you’ve decided on a provider, an advertising agency can help you create your casino website.
Step 5: Targeted Marketing Measures
If you want to be permanently successful with your online casino, you need customers and you have to retain these customers. Therefore, customer loyalty is an elementary success factor in opening an online casino in addition to the acquisition of new customers.
This is the only way to develop a permanent source of income from your own online casino. Of course, it is not possible to run TV advertising directly as a marketing measure or to place large posters at train stations. For example, targeted SEO measures and advertising via Google AdWords make more sense, because the pay-per-click principle makes it easier to plan and control advertising costs.
Another way to quickly acquire customers when opening an online casino is affiliate marketing. To do this, you work with various website operators as intermediaries who advertise your online casino on their website and then receive a commission for each click or registration.
It cannot be denied that online casinos can be financially worthwhile and, under certain conditions, enable high income. But it is not enough to quickly launch a website and then open an online casino.
The competition is now fierce and on top of that, there is the extremely high start-up capital with numerous costs for implementation. That is why it is all the more important to develop a special concept and draw up an exact plan for your start-up. Only then can you found your own online casino and operate it successfully in the long term.