With the iGaming market growing at a phenomenal rate, the demand for the latest online gaming solutions and products is also rapidly escalating. As one of the largest industries worldwide, the gaming sphere generates over $61 billion in revenues every year and is growing faster than any other sector in the entertainment industry, reaching $114.4 billion by 2028.
With more people taking advantage of an exciting player experience at their fingertips, there are more opportunities for those willing to become part of the online gaming business.
In this article, we will give you a headstart on how to start an online gambling business.
Table of Content
- Choosing the Market
- Gambling Licence for the Targeted Jurisdiction
- Identifying Gaming Vertical
- Choosing Your Platform Provider
- Creating a Website
- Marketing Strategy Creation
- Run the Business
1. Choosing the Market
When it comes to exploring gambling as a business, the first thing you should determine is the market. Needless to say that each target region requires a different approach.
The market-specific jurisdiction is the backbone of any firm in iGaming, hence you should observe all laws, business rules and regulations to ensure having all the necessary permissions.
While intending to provide gambling services in a specific territory, you should apply for a licence in that particular country, as there are countries where local law has supremacy over international jurisdiction.
With each jurisdiction having different legal standards to follow, deciding on the region of operation and its legal background can be rather challenging; however, it is the most vital step you should take to ensure the legal functioning of your business.
2. Gambling Licence for the Targeted Jurisdiction
Once you have chosen the regulated market for your business, first off, you should apply for the licence of that particular country.
Despite the tremendous potential, designing a profitable online gambling business in the crowded space of today’s industry is not an easy task also from a legal point of view.
The legal aspect includes having the proper licences and permits to operate your company in the specific region. The process of obtaining a licence is tough and somewhat pricey, but you should consider that getting over the legal processes is inevitable for any potential operator.
With various sets of regulatory demands and overall certification types and requirements, the list of major licensing markets in the global gaming industry includes:
- The United Kingdom
- The United States
- South Africa
Apart from the local, country-specific permits of the market you are going to operate in, you can also choose international online casino licences that cover permissions for many countries. The international licences provide opportunities to function across several target markets and geographics.
That includes licences such as:
- Isle of Man
The significant aspects to consider when selecting a jurisdiction are - licensing criteria, reputation, the difficulty and duration of the application procedure, upfront and annual fees, and taxes.
You should also keep in mind that obtaining some licences may take from a couple of months to a year. There are enormous barriers to starting a successful online gambling business in the highly competitive field, and if you want to avoid going through the exhausting process of getting the licence on your own, there is a managed solution of becoming the licensee of an iGaming software provider.
This cost-efficient option can unravel a unique opportunity to focus on other vital aspects of your business, save time and effort. Being a smart and productive alternative to going through time-consuming formal processes, the White Label solution offers a proven way of launching your business.
As a leading iGaming software provider with a complete gaming suite and a wide range of services, BetConstruct holds over 40 gambling licences and certificates in several jurisdictions and legally assists its partners and operators in functioning in various markets.
The White Label offering by BetConstruct is a package of iGaming products and an opportunity to function under the licences of Malta, Curacao, France, and the UK.
3. Identifying Gaming Vertical
One of the first steps in starting a successful online gambling business is designing engaging and captivating content for the target audience. Selecting entertaining content for your future players involves identifying the interests of the potential customers and trends of the region.
In other words, staying ahead of the competition includes carefully choosing the gaming content based on the needs of your target audience and region specifics. As a matter of fact, this process involves
- In-depth market research to understand the target audience and their needs
- A diverse suite of iGaming portfolio
- Adding various market-leading providers to the portfolio
The gaming vertical can be rather diverse and involve several segments such as Sportsbooks, slots and live casinos.
With sports betting being one of the most popular activities of all time, Sportsbook concentrates on accepting bets on sports events. With clearly identified odds and betting opportunities, the players can wager on their preferred sports and betting types. Today’s online sportsbook platform includes all types of sports, such as soccer, tennis, hockey and many more.
As one of the fastest-growing fields within the last couple of decades, online betting has paved the way for an exceptional real-time gaming experience around the world. Compared to traditional gambling, online casino software solutions are hosted on web platforms and accept bets for various games against the casino and other players. Online casinos mostly have the same game offerings as traditional land-based casinos. The online casino includes popular slot games of all shapes and sizes, from simple design to complex video graphics.
Live dealer casinos deliver an opportunity to enjoy an accessible and exciting player experience without the necessity of visiting land-based casinos. The suppliers of live casino software have designed the games to provide an entirely new gaming experience. With the help of digital solutions, the players have the chance to live communication with dealers using chat windows. The players can set up and start playing their favourite game in no time. The only thing required is a reliable internet connection. The real-time interaction with game presenters adds to the game a higher level of excitement and makes live casino an excellent option for players who enjoy the social element of gaming without leaving the comfort of their homes.
4. Choosing Your Platform Provider
Choosing a reliable iGaming software supplier is the ultimate key to designing a profitable online gaming business. There are countless benefits to obtaining ready-to-operate iGaming software from a trusted software provider. Software providers strive to make sure their partners have access to customise their functionality and integrate their content. By choosing a provider that meets your standards, you will enter the market with an entirely functional software package crafted upon your requent.
Selecting the right software provider that will give you a ready-made solution and easy access to starting an online gambling business, involves evaluating all options from the perspective of price and quality. The existing portfolio of clients might be a huge help in understanding the perspective of potential cooperation.
You should go for a provider that offers entirely comprehensive, customisable solutions with total control over all operations and processes, from design to post-launch adjustments. Another brilliant alternative is opting for a provider that provides a package of white-label solutions with a gaming licence.
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5. Creating a Website
Today, gambling websites have evolved into multi-channel platforms offering a wide variety of services and solutions. Building a gambling website is creating a platform that allows one to make wagers on different sporting events and casino games. As a form of entertainment for anyone that enjoys playing casino games, the platform offers a wide range of services and is a thrilling gaming experience.
Before starting the process of building your website, there is a list of questions that you should specify for yourself.
- What content do you aim to have on your website?
- Which software platform are you going to choose for your site?
- Are you going to offer your players only casino games, or you prefer to include a sportsbook and live casino module with professional game presenters, high-quality live video streams and a user-friendly interface?
- Will you include in-play sports betting?
- Do you plan to have additional features, like statistical data, bonus or tournament creation possibility, real-time chatting rooms etc.?
After indicating the requirements you want to set, you should start the process of getting the necessary licences and permits and integrating payment gateways.
With so much at stake, it is important to consider the long-term prospects and viability, which implies carefully selecting your iGaming software supplier. The software will run your site and serve as the core of your gaming platform, assisting you in managing all your operations, payment processing, marketing, accounting and many more.
You should also keep in mind that, though you might choose to start your journey with a casino or sportsbook only, you may opt to add other games and features in the future. Hence, going for a reputable gaming supplier may assist you in integrating all of the essential content into a user-friendly online interface.
Overall, there are several options for building your own gambling website based on your preferences:
- Hiring an in-house development team to construct the website from scratch
- Passing on the process to a third-party company
- Ordering a web-based casino platform from an iGaming company
It is up to you to decide which solutions work the best for you and focus your effort towards that direction.
6. Marketing Strategy Creation
After sorting out all the previous aspects, you should concentrate on promoting your online gaming business. First off, you should make a deep competitor analysis to learn everything they’re doing right and wrong.
One of your prime objectives should be positioning yourself as a reputable company in a rather competitive market. The ideal approach is to provide high-quality games from trusted providers on a platform with great UX to keep the players engaged and excited.
Sound marketing strategy and ongoing campaigns are the key factors in enhancing the company name, attracting new players and keeping the existing ones. So bonus systems and retention programs are the best solutions in this context.
Your campaign should include loyalty programs, such as sign-up bonuses, deposit bonuses, free bets etc. As a part of your strategy, retention methods are a standard way of keeping the existing players.
Thus, to attract and keep players on your website, there are specific points you have to consider in building your marketing strategy:
Determining what makes your project unique among others and why players should select your site. Finding out the actual value that sets your business apart from the competition.
- Pre-launch strategy
A campaign announcing the launch of your platform should be held a few months before the final results. The main goal is to create anticipation among the players for the upcoming launch. So the campaign should include ads, promotions, bonuses and discounts.
- Post-launch promotion
This stage includes the implementation of general marketing campaigns in digital platforms, banner networks, SEO, etc.
- Customer retention
Offering bonus systems, promotions, loyalty programs, and seasonal event promos to increase retention levels. This may also refer to having an open channel with the users and betting assistance for newbies.
- Affiliate programs
Creating an effective affiliate network may assist you in increasing traffic and attracting new players worldwide. Implementing affiliate programs can be a great first step towards establishing a bigger client base. Affiliates use a variety of tactics and strategies to target new audiences and with proper casino affiliate management, you can also ensure that your affiliates are promoting your brand ethically and in compliance with industry regulations.
- Comprehensive CRM
With CRM tools, you will have valuable data on your players’ performance. The robust statistics provided by CRM technologies let you engage with players, evaluate their playing habits, and betting preferences, and customise your company to target and develop highly effective promos.
7. Run the Business
Now that you have the insights into all aspects required to refer to gambling as a business, you should practically implement it in your business model in the long run.
Although maintaining the professional standards that were set up primarily is not easy, establishing trustworthy partnerships will reduce the number of possible mistakes while your business is still in the beginner stage of its lifecycle.
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Despite the online gaming business being one of the most profitable, building one from scratch can be rather exhausting. However, there are solutions that you can choose to assist you in the process.
Being comparatively new in the field, you should choose your operation market carefully, conduct a thorough competitor analysis, work on a well-planned business strategy and seek cooperation from trustworthy specialists in the field.
Contact us if you are ready to start your own iGaming business