The popularity of the online casino industry is constantly increasing. More countries are easing their gambling regulations, improving accessibility for newcomers, and established businesses to operate legally and profitably.

Opening an online casino business presents an attractive and potentially profitable business opportunity. Nevertheless, there are numerous factors that should be taken into consideration before embarking on a new journey.

Before going through the necessary steps for opening an online casino, let’s see what an online gambling business really is.

What is an online casino?

What is an online casino? An online casino provides players access to various casino games, allowing them to win real money and enjoy numerous player benefits.

These virtual establishments offer a broad spectrum of games, mirroring and improving the offerings of traditional land-based casinos, including slots, table games, live dealer options, and more. Players typically open an account, fill out personal details, and deposit funds through different payment methods.

Online casinos use sophisticated software and robust security measures to ensure fair gameplay and protect the confidentiality of players’ personal and financial data. Moreover, they offer customer support services and implement responsible gambling tools to foster a secure and enjoyable gaming experience. Online casinos are a convenient and accessible way to play games of chance on the go.

Let’s go over the steps required to open an online casino.

Market

We have previously discussed the importance of choosing the right market for your online casino business. Therefore, we will discuss the most crucial aspects.

The market you opt for has a profound impact on various aspects of your business. Are you inclined towards an established, mature market, or do you lean towards emerging, recently regulated ones?

It’s crucial to recognize that the online casino gaming realm is undergoing rapid transformations, fueled by technological advancements. The incorporation of live dealer games, virtual games and sports betting alongside conventional slots and table games is pushing the industry to unparalleled heights.

When choosing a market, it’s important to know what the local regulations are. The legal framework governing the gambling industry varies significantly between regions, countries, and sometimes even within individual nations. Markets are broadly defined as “white”, “black”, and “gray” which describe the level of gambling legislation and legality of online casinos.

Understanding your potential player base, their game, payment preferences, and betting patterns can significantly impact the acquisition of new players, and directly impact your business’s revenue.

Steps of opening an online casino

It all begins with a solid business plan. Before launching an online casino, you should map down how you envision your entity.

Some important factors that should be considered are goal, mission, internal structure, online product roadmap, and advertising strategy. Combining all this will help future players enjoy their experience and return to your smooth and secure platform.

License

Choosing your business location might be a challenging task as the regulations are changing constantly. Certain locations, such as Malta, Gibraltar, or the Caribbean islands, offer cost-effective options, while countries like the UK and Spain may impose high incorporation fees.

However, it is important to notice that these countries offer easy access to experienced professionals and a variety of gaming services.

Software

Every online casino business needs reliable software – from the game selection and the online promotions to the player database and security tools. Every aspect of your business is supported by a digital application.

Online casinos have two options. They can either build the entire infrastructure in-house or outsource it to external vendors. Furthermore, this choice depends on the company’s resourcefulness and capacity for launching its proprietary software.

Selecting a vendor to develop a reliable online casino platform represents a crucial milestone in establishing your business. The software provider is responsible for essential platform features and integrations, making the website’s functionality and the quality of the provider’s technical support vital considerations.

Furthermore, the range of services offered by the supplier will have an impact on the project’s development and maintenance costs.

Staff

When emerging a new business, one might consider the possibility of seeking external assistance through outsourcing, typically for management, design, marketing needs, and engaging service and solutions providers.

Established companies often have in-house development and marketing departments, but new iGaming operators or those seeking to streamline the process frequently opt to enlist the expertise of experienced professionals to save time and effort in creating their offerings.

Website development

The most critical aspect of attracting and retaining customers lies in the well-designed user experience of the website. It provides visually appealing landing pages and significantly enhances your brand’s value.

The design should be user-friendly and distinctive across all platforms. Avoid excessive graphical elements that can overwhelm visitors and strain the system. Additionally, prioritize seamless front-end integration with your database and consider enhancing navigation usability since layout plays a vital role in your website’s performance.

Ensure that the transition from your website to the gaming platform remains seamless for users.
Make sure your platform is mobile-friendly. Using mobile devices has become extremely popular because it allows players to play casino games on their favorite devices anywhere. Hence, it’s essential to deliver a smooth experience on different devices.

Marketing and promotions

Marketing strategy encompasses everything from social media and email to affiliate and bonus programs, implementing player acquisition and retention strategies.

Attracting players to your online casino differs significantly from typical e-commerce businesses, as online casinos primarily rely on third-party websites to acquire the majority of their players. It’s essential to build a comprehensive affiliate network that aligns with both your brand identity and player expectations.

Affiliate

Affiliates, typically consisting of gambling bloggers or streamers, cultivate substantial followings before guiding their audience toward online casino platforms in exchange for a commission.

Bonuses

Bonuses are a significant factor in the player acquisition and retention strategies employed by nearly every casino. They attract players with welcome bonuses, deposit bonuses, and referral bonuses, as well as complimentary spins, chips, and bets.

VIP and loyalty programs

Appreciating players for their continued loyalty is an effective strategy to encourage their ongoing engagement with your online casino. Many casinos implement loyalty programs that provide advantages and incentives to players who invest sufficient time and money on your products.

Operators prioritize top bettors who frequently make substantial deposits and engage in high-stakes betting. This is where VIP programs come into play. These tiered loyalty programs deliver rewards, privileges, and special benefits as players achieve higher levels.

Cost of opening an online casino

Determining the cost of developing an online casino is a complex matter with no straightforward answer, as every detail plays a significant role in the overall expense. If you opt for a casino built from the ground up, your final estimated cost will naturally be higher compared to using a templated design solution, so you may consider a white label or turn key platform.

White label is a service that typically will be almost ready to go, missing only the brand identity. The turnkey casino platform is a tailor-made solution integrating iGaming content into a single user interface.

It offers software and technical support, giving the operator full autonomy over its business. However, this platform type requires a longer setup time as operators are responsible for sourcing everything except for the games.

Integrating game packages from different providers will incur more costs than choosing a single provider, but offering diversity to your target audiences is necessary, and you must consider it.

In broad terms, your casino development expenses can be categorized into pre-launch and post-launch stages. The pre-launch phase encompasses costs such as software setup (approximately 30-40% of the total), marketing efforts (30-40%), licensing procedures (10-20%), and various other expenditures, including salaries. The initial development phase typically demands more financial resources than the ongoing project maintenance.

Once your online casino is operational, ongoing expenses persist but may be lower. The most substantial ongoing cost is usually associated with marketing and promotion, accounting for nearly half the total expenses.

Additional operational expenses include salaries for personnel, license fees, royalties paid to game providers, and other operational necessities. Assuming your casino has been effectively managed and performed, these expenses often generate quick returns, as they are compensated by the revenue generated by your casino’s visitors.

Recommendations

Once you have settled the foundations of your business, there are several things to keep in mind. Starting an online casino business and achieving success requires substantial effort, significant time, and financial investment.

Research the competition

It’s crucial to know your main competitors. Study their strategies, understand their actions, and strive to outperform their achievements. This can help you introduce unique product features that set you apart in the market.

Budget

Determine your budget and stick to it as you embark on your journey. Overspending in the initial phases can lead to failure. Your company’s success depends on precise cost calculations during the business launch.

Website simplicity

Avoid overcomplicating your website’s user interface (UI) and user experience (UX). Focus on creating a user-friendly, straightforward platform without unnecessary features. An online casino should be engaging, fast, and accessible across all platforms.

Build your brand

Your brand should be distinctive and tailored to your target audience. Otherwise, it might be challenging to gain competitive advantage and achieve the forecasted results.

Emphasize security

This industry is prone to criminal activities, cyberattacks, negative reviews, and more. Ensure you have an advanced and reliable security system in place, as well as excellent customer support to address and mitigate challenges effectively.

Conclusion

Running an online casino is challenging, yet it has the potential for success by promptly addressing legal and financial matters and selecting top-notch software tailored to your specific needs. A great example of such a platform is EGT Digital’s X-NAVE iGaming platform.

These platforms offer cutting-edge solutions and are flexible to your business needs by providing a complete solution or allowing integration of specific modules you may need.

As the popularity of iGaming solutions continues to increase, the competition in the industry becomes more intense. Therefore, developing a market-ready strategy, implementing the best practices, and following a robust marketing plan is as essential as selecting the right iGaming platform when starting a business.

FAQ

Can anyone start an online casino?

Starting an online casino requires meeting various legal, financial, and technical requirements. While technically anyone can start an online casino, it involves obtaining the necessary licenses, investing in reliable software, and complying with local and international regulations. Significant capital and a thorough understanding of the market are also essential.

What is the cost of opening an online casino?

The cost of opening an online casino varies significantly based on the development approach. A custom-built casino will be more expensive than using a white label or turnkey platform. Pre-launch costs typically include software setup (30-40%), marketing (30-40%), and licensing (10-20%). Post-launch expenses primarily involve marketing and promotion, which can account for nearly half of the total ongoing costs, along with salaries, license fees, and royalties.

What is the first step to start an online casino?

The first step to start an online casino is to develop a solid business plan. This plan should outline your goals, mission, internal structure, online product roadmap, and advertising strategy. A comprehensive business plan will help ensure that future players have a smooth and secure experience, increasing the likelihood of their return to your platform.