Despite the global economic crisis, the online casino industry instantly adapted to the new realities, continuing to bring seductively stable incomes to the gambling business owners. The profitability of the sphere is the compelling argument that makes entrepreneurs want to start their projects. To make your wish come true, we will tell you in detail about the launch of an online casino platform.
A genuinely long history of steady demand for gambling, as well as the unrelenting pace of technological progress, create an excellent business ground for anyone looking for new opportunities and looking to start their own business. And there is no doubt that 2021 is the perfect time to dive into the online casino platform industry. Just look at the numbers: gambling platform business analytics company H2 Gambling Capital predicts global iGaming revenue to hit $ 117 billion over the next five years. The total revenue was $ 58 billion. Impressive, isn’t it?
While the lucrative prospects of online casinos tempt motivated entrepreneurs, scrupulous business strategists are calibrating their every step towards the riches of the gambling platform industry. After all, project management is a game where the outcome is determined not by luck but by skills. That is why to stay ahead of the competition; you need to make every effort.
- Market analysis
- Choice of the area of operation
- Business plan preparation
- Capital raising
- Corporate structure
- Obtaining a license
- Staff recruitment
- Preparing the platform
In this article, we will cover the basics of the online casino platform business. It is advisable to familiarize yourself before the question arises: is the game worth the candle? Below is your in-depth guide to the rich and vibrant iGaming world.
Analysis of the global iGaming market
New markets are popping up on the global gambling map with enviable frequency. More and more countries begin to recognize the economic potential of the gambling platform industry. Simultaneously, the incredible speed of the introduction of technological innovations into everyday life erases the business horizons that existed in the past, leaving behind a broad scope of opportunities for long-term projects and wise investments.
While the global economy, by and large, was forced to cope with the effects of the economic crisis, the online business sector was in a better position to adapt to the new quarantine reality. And the online casino platform industry was no exception: businesses faced several challenges but managed to cope with them successfully thanks to the sector’s flexibility. Moreover, in the coming years, experts predict the stable development of the iGaming direction.
Traditionally, a significant portion of iGaming revenue comes from online betting. Despite the suspension and, in some cases, the cancellation of key sporting events, the industry was able to reassess its priorities in the shortest possible time, making a logical bet on cyber and virtual sports. Also, those of the operators who timely introduced games with live dealers into their offer noticed a rapid increase in income, which is not at all surprising: the players who found themselves locked up within the walls of their own homes were actively looking for ways to socialize and interact with other game lovers.
Determine your target market
Choosing your target market will be one of the first steps in developing your online casino. The decision you make will shape many of the critical aspects of your business. So what should you keep in mind?
The gambling industry laws differ from jurisdiction to jurisdiction and sometimes even completely different within the same country. The presence of a government body responsible for the legal life of the gambling sector testifies to the transparency of the business, and therefore such markets are called white. At the same time, regions, where gambling is outlawed belong to black needs.
It is also worth considering that several countries ignore the gambling industry entirely or adopt conflicting laws – gray markets. For example, the provisions of some administrative bodies may exclude the requirements of others, thereby leading to legislative confusion. Another striking example is the situation when the responsible authority does not issue licenses for gambling platform operations but does not prohibit players from its jurisdiction from visiting third-party offshore sites.
The status of the regulations is the first thing to think about. While some operators are putting themselves at risk in the highly volatile black and gray markets, white markets offer operators a solid footing – regulations create a healthy and secure business environment.
They also deserve attention for another reason: gambling licenses do not always cover all the latitudes of the iGaming geography. Study the territorial features of licenses in advance to ensure there are no legal barriers between your online casino platform and the target audience.
Players and their requests
No matter how time-consuming, from the point of view of time, the stage of determining the target audience may seem, it rightfully deserves a careful analysis by the operators. The right questions will lead to the correct audience segmentation, and therefore, to a point targeting your client.
What is the average age of the players? Average monthly income? Amount of funds used for entertainment? Is there a cultural predisposition to gambling activity? If so, what forms of gambling? If not, which ones are in the most significant demand and why? What is the preferred currency? What payment methods are more in need? The list is not limited to these questions. After all, there are still so many prisms through which it is certainly worth looking at reality!
Stand out from the competition.
In the modern world, it is no longer possible to reinvent the bicycle (and is it worth it?) – possible modifications, in any case, will be based on the original concept. The situation is identical in the gambling platform world. It is essential to consider the most productive and, therefore, effective methods among the existing ones while simultaneously developing your business strategy.
The more organically your competitive offer fits into the picture of a particular market, the greater the chance to attract interest from the players. After all, the promotion tools are the same for everyone. The only difference is how successfully they fulfill their purpose.
The financial side of the issue
Without going deep into a detailed analysis of all financial costs, it is worth calculating an approximate budget to cover such aspects as obtaining a gambling license, fees, and taxes, business registration, etc. Each jurisdiction has its characteristics, so if the cost may seem daunting, it might be worth considering a more affordable alternative.
Planning oversights inevitably lead to planned directions. The pun is not a joke or a threat but an obvious statement of fact. A business plan is not only a kind of assistant for operators and a mandatory requirement for obtaining a gambling license but also a convincing argument in negotiations with investors.