The Prospects of Recreational gambling
Recreational gambling has always been a cash cow and you need to look no further than Vegas or Monaco to know that. For the vast majority of us, owning an actual casino is something that is miles out of our reach. Individuals who however possess a certain passion for the art of recreational gambling and casinos can today opt to go in for an online gambling business. With the market expanding annually and even smaller companies raking in the profits, there is no reason whatsoever to prevent an enthusiast from taking the plunge in this lucrative billion dollar market.
The Paradigm Shift and Competitions
Even though there has been a tectonic shift in gaming preferences, with more and more people opting for the online gaming route instead of brick and mortar casinos, newer players going in should not expect instant gratification. With the market slowly reaching saturation with the entry of newer casinos by the day, an online casino owner must be ready to face the music in this highly competitive market. There is a need to constantly re-invent the wheel and retaining the player base by offering joining bonuses, free spins on a slot machine and other incentives. This combined with the licensing costs and other destination specific expenses are some of the other red flags which a prospective online casino owner must consider before taking in the plunge.
Prepare Yourself for Challenges
Before setting out to build your real gambling website, you need to decide on your jurisdiction and obtain a license which enables you to run an online gambling business. Currently the following legal frameworks dominate the industry:
- countries regulating online gambling within their territories;
- countries imposing monopolies;
- countries that have banned online gambling in their territories
- countries that lack regulations on gambling activities
The following factors also must be taken into account before choosing your jurisdiction
- Licensing requirements
- Application Procedure
- Application costs
Countries such as Curacao and Costa Rica would charge you anywhere around 20,000 EUR while more lucrative and larger markets such as UK, Malta or Romania would set you back by 150,000 EUR per year. You can also setup an offshore company that will be the face of your online gambling business while you go through the process of obtaining your license.
The Key Steps to make it Happen
Now that we are done with the legalities, let us now see what are the actual steps through which you can setup your online casino
- Choose your online provider: – The games you offer are the heart and soul of your website. Thus choosing the perfect games provider is an imperative towards building a successful online gambling business. There are 2 kinds of suppliers you can team up with
- Independent Game Developers – Vendors such as Playtech, NetEnt and Microgaming are the top players in this segment. With independent game developers you have to pay a lower amount in fees and there is an inherent flexibility in meeting your requirements
- B2B Developers – B2B or Business to Business developers such as EveryMatrix, FinnPlay enable you to include games from multiple developers, though you end up paying a little more cash owing to multiple contracts.
Not only do these developers provide you with the games, they also provide you the gaming software which acts as the brains behind your website. The casino management software helps you with your account management, payment processing and other activities. This makes choosing your gaming provider an even more important step. Request information and contract templates from at-least 10 providers and compare them fastidiously before you come to a final decision.
- Configuring Payments: – Setting up a robust payment system is the next step towards your goal of a functioning online gambling business. An efficient payment system is needed to take deposits from players, disburse payout prizes and for other transactions. Your payment solutions should have the following features
- Multiple payment options for players
- Integration with major e-merchants
- Support for multi currency
- Fraud and transaction failure detection
Your payment solution should also be flexible enough to incorporate newer payment methods such as Bitcoins to attract the more tech-savvy and discerning players.
- Website Design: – Your website is the gateway to your games and as such it needs to be aesthetically designed to attract and interest players. The following should be pointers you should keep in mind while designing your website
- Seamlessly integrate your front end UI with your database to ensure a smoother experience for the user
- Keep the design simple and crisp to keep the focus on the games themselves
- Refrain from loading the website with heavy graphics and going overboard on aesthetics. This slows down the website and affects smooth game-play.
Marketing Strategies and Planning
Now that you have the barebones website setup with all the games, you need to attract the players to your website and ensure that once they play with you, they keep returning.
This can be made possible by implementing a sound marketing strategy which includes loyalty and customer retention programs. The following are some of the frequently offered loyalty programs and retention policies: –
- Sign Up bonuses to players the moment they join your website
- Deposit bonuses when players deposit a set minimum amount of money
- Free bets or free spins during the game-play
- VIP loyalty programs for high rollers to make them feel that their time and money is being appreciated
- Seasonal promotions to keep the content fresh and retain interest
A Dream Come True
Setting up an online gambling business can be a daunting task. With the licenses, regulations, game vendors and the constant need to be on your toes, this is a business where complacency can result in instant failure. But if you possess the flair for entertainment and recreational gambling, this is a business which can provide you with spectacular returns. We hope the above-mentioned steps will help you setup your own online casino business.