The gambling industry is one of the most promising types of entrepreneurial activity. A certified iGaming platform is an excellent source of income that allows operators not only to quickly recoup their investment but also to enter the international market with a huge turnover.
According to statistics, by the end of 2018, the total industry volume exceeded $49 billion. At the same time, growth opportunities have not yet been exhausted. Experts believe that by 2023, the market turnover will reach $100 billion.
Online gambling platforms are much more profitable than their land-based analogues. At the same time, the items of expenditure for launching your internet business remain much less.
Employees of the Smart Money studio have collected relevant data on the development of the industry and ways to implement start-up projects. We will tell you:
Our specialists are guaranteed to find an individual approach to each client. You will receive professional advice, a large selection of high-quality solutions, and very attractive terms of cooperation.
The development of innovative technologies has created a completely new space for commercial activity. Today, there is rapid growth in all types of virtual business environments, and the gambling industry is no exception.
Over the past 2 years, land-based casinos have significantly lost their positions, giving way to radically new forms of entertainment. The undeniable advantages of modern iGaming resources:
The France Press independent analytical agency announced a significant increase in investment in the mobile market and an overall growth of more than 28% in the virtual gambling niche in the last year alone. Already in 2017, the volume of the internet segment was comparable to the income of all land-based platforms in Europe, and this is just the beginning.
Another of the many advantages of casino sites is the complete absence of constraining factors (geography and time). Access to games for money is open to any owner of a desktop computer or mobile gadget with access to the Internet.
If we compare an online project with a land-based gambling establishment, the former attracts a much lower level of funding. Launching an offline casino may not pay off even after a few years. The expense item includes such aspects as rental of premises, depreciation of gaming products, purchase of equipment, design of the space, hiring of staff, and much more.
To launch an online casino, you only need a high-quality platform, reliable software, and a well-thought-out marketing strategy. Moreover, it is always possible to delegate all tasks to an intermediary company. At the same time, the payback of the project is an order of magnitude higher — with the right approach, all expenses are paid off within 4–6 months after the launch of the business.
In the case of an offline casino, marketing is always expensive and often ineffective. The main problem is the strict legal norms and prohibitions on the provision of entertainment for real money in most countries.
To promote a virtual start-up, entrepreneurs can use a wide variety of tools that have already proven their effectiveness. For example, a well-organised e-mail campaign can increase the level of repeat sales by 36% and attract up to 18% of new clients to the casino. And this is just one of the possible advertising options.
A licensed iGaming platform can offer its customers a unique service — free training in popular games (poker, roulette, blackjack) and other entertainment without the need to place bets. As for land-based establishments, the concept of a “demo mode” simply does not exist.
If visitors to offline locations have access to a standard set of products, then users of gaming sites can discover something new every time. It can be slot machines with unusual plots, solutions with live dealers, or interactive sports betting.
The adaptation of land-based establishments to the needs of the audience is too slow but virtual resources always win in this regard. A modern online casino means guaranteed availability and compatibility with any operating system (for example, Android or iOS).
Visiting most offline gambling clubs requires an austere exterior. Virtual platforms have eliminated the very concept of a dress code — players may not worry about the need to look respectable.
Land-based locations typically accept no more than 2 types of currencies. Online resources can offer their customers the widest variety of options for making deposits and withdrawing funds. In the modern market, there are platforms with the most common international payment services. Besides, casinos that accept cryptocurrency are gaining popularity today (about 28% of the total number of existing casinos).
In virtual establishments, the main emphasis is placed on communication with users. The presence of a support service makes the gameplay safer and more comfortable.
Land-based locations are not able to offer visitors a similar level of service.
Any business area requires the acquisition of specialised licences and obtaining the necessary legal status. The gambling industry is no exception. On the contrary, in this area, the certification norms are much stricter and in some ways similar to the requirements for banking institutions.
In many countries, it is impossible to obtain a permit for launching a gaming site. Today, no more than 80 states provide such services. Among the most respected and trusted jurisdictions, we can name:
Each of the jurisdictions puts forward some mandatory requirements for the applicants. For example, to obtain a gambling licence, it is necessary to provide a certificate of good conduct (especially in the economic sphere), confirm work experience in managerial positions, and open a current account on the territory of the country that issued a permit.
Besides, the authorised body may require that the legal condition of the brand is formalised only in a particular jurisdiction and one of the founders has the status of an offshore zone resident.
The basic set of documents for the legalisation of a casino business:
Depending on the requirements of the authorised bodies, the package of documents can be supplemented. As a rule, all papers are submitted in multiple copies in English and the local language.
It can take from 3 weeks to 4–6 months to process the operator’s request.
This item of expenditure starts from the mark of $10–12 thousand. As a rule, for a minimum amount of money, entrepreneurs receive a limited set of options. Very often, offshore companies offer intermediary services to foreign applicants. Third-party companies independently prepare documents, search for full-time employees, register a legal address, and deal with other issues. In this case, the price increases significantly and can reach $50–60 thousand.
Moreover, do not forget about the need for annual licence renewal. The cost of this service can vary from $1–30 thousand (depending on the chosen jurisdiction and the operator’s field of activity).
The income tax is charged as well. In offshore zones, these are minimum values ranging from 0.1 to 10% of the casino's annual revenue.
To implement this kind of project, there are several options:
This is the most energy-intensive and costly solution that requires the following actions:
Each of the items requires specific knowledge and significant financial investment. The independent development of the project will cost several hundred thousand dollars (for example, the licensed software alone is about $70,000).
This is a partner cooperation scheme that assumes complete dependence on the parent company. In fact, entrepreneurs receive at their disposal a ready-made product with a fixed set of components and give a percentage of the income to the supplier. In this case, entrepreneurs cannot change the set of solutions without consulting their partner.
At first glance, this is the most profitable option. However, the cheapness of raw code is the only advantage. By buying a script, operators act at their peril. The desire to save money can turn into a whole bunch of problems — from the need to modify the system to difficulties with concluding agreements with content providers and the complete failure of the entire project.
Turning to intermediary companies, business owners get at their disposal a full-fledged product that can be immediately launched.
As a rule, the set of basic services includes the following options:
Additional solutions may be also included in the list of the above-mentioned services.
A turnkey web platform with a licence issued by a foreign jurisdiction is a great chance to demonstrate the brand image. It opens up completely new horizons for development and a rise in profits.
Key benefits of such an option:
The range of solutions includes proven multi-currency payment services, programs for mobile platforms, exchange terminals, casino software with the live broadcast option, and much more. There are products for organising bingo halls and hardware for equipping land-based locations.
We work with the most reliable suppliers and guarantee the quality of the provided products and services.
To order a turnkey licensed casino and establish a successful business, feel free to contact Smart Money managers.
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