9 Reasons to Start an Online Casino
The niche is evolving rapidly. Today, the idea to invest in this niche is fairly profitable due to access to innovations, simple licensing, and convenient formats of work.
Specialists of the Online Casino Market company will tell you about the key benefits of creating an iGaming startup and explain why such platforms are profitable, cost-effective, and prestigious.
Experts of the ResearchAndMarkets.com online portal expect that by 2028, the capitalisation of digital games for money will reach $133.9 billion with an average annual growth of 9.01%.
The market development will be affected by the following factors:
- introduction of IT innovations;
- legalisation of casinos in many jurisdictions;
- growing demand for smartphones and 5G coverage;
- the use of effective Responsible Gambling mechanisms, etc.
In 2024, the popularity of iGaming will increase in all key regions:
- In North America, the expectations of investors are related to the legalisation of online casinos in the US. The issue is resolved at the federal level, and at the moment, several states have changed their attitude toward digital gambling. These are Nevada, Michigan, Pennsylvania, New Jersey, Connecticut, Iowa, Delaware, and West Virginia. Indiana and Illinois will be soon added to this list.
- The Asian region is considered to be the fastest-growing one. The Philippines has become the centre of virtual games for money. All types of entertainment are allowed in the country, and entrepreneurs can work in 2 domain zones at once — .com and ph. In 2024, the Indian authorities plan to rationalise the legislation, which is of great interest among investors.
- In Europe, the niche is regulated in almost all jurisdictions. There are states where all types of solutions are allowed (casino games, betting options, and poker sessions), and there are those where some types of gambling are monopolised. Among the vivid examples, we can name Denmark and Romania where lottery draws are organised by state-owned companies.
- In Latin America, several major economies (Colombia, Argentina, and Costa Rica) simultaneously opened their domestic gambling markets. The Brazilian authorities promise to present a detailed development plan for the sector, given the country's enormous potential for launching and scaling iGaming startups.
Offshore zones remain the most popular jurisdictions for the implementation of casino projects. Here, there is a well-developed gambling community, low tax rates, and clear conditions for business certification.
The most favourable terms are offered by the regulators of the following countries:
The region often gets into the list of the best places to register an online casino. Almost all top software vendors have offices in Malta. These are Pragmatic Play, Habanero, Tom Horn, Microgaming, etc.
The advantages of the jurisdiction include:
Gamblers and B2B partners trust iGaming platforms that hold a Maltese permit
The jurisdiction is known for its positive attitude towards casino websites based on blockchain technology. The first licence of such type was issued there.
In 2024, the government announced the release of a new law regarding blockchain gaming. It will become easier for entrepreneurs to launch resources that accept cryptocurrency payments, and the work of illegal portals will be instantly blocked
The AGCC state regulator is responsible for the issuance and renewal of certificates.
The organisation grants 2 categories of permits: certificates of conformity and temporary licences. The last type of document is valid for 60 calendar days and is issued under a simplified procedure
The authorities of the island do not issue gambling certificates but they do not prohibit the operation of online casinos either. The main thing is that such services should not be addressed to the local population, and Costa Rican banks should not participate in the process of acceptance of payments.
The key advantage of launching an iGaming startup in Curacao is the complete absence of taxes. There are no deductions from GGR (gross gaming revenue), income taxes, dividends, and withdrawn capital
The regulator grants documents of 4 types. Entrepreneurs can obtain a main or network certificate, a sublicence, and a permit in the B2B format.
The licence is valid for 5 years and gives business owners the right to preferential taxation. Operators pay 0.1–1.5% of GGR depending on their gross income for the reporting period
The growth of the niche is directly related to the overall digitalisation of the Internet economy. Casino entertainment is rapidly moving to the virtual space and new methods of combating fraud and management functions are emerging.
In the coming months, the iGaming industry will use:
- Artificial intelligence. The introduction of AI and machine learning technologies makes it possible to process large amounts of data, analyse the preferences of users, and create lists of recommendations. Increased protection of the gaming site from bots and accelerated verification of users have also become available thanks to AI.
- Blockchain. In this niche, blockchain is used as a cryptocurrency. The universal settlement method provides high speed and security of transactions, as well as anonymous work with minimal commission fees. The technology is also considered the basis for NFTs. Their value (unique games, characters, and artefacts) is constantly increasing, so the decision to buy them is the best way to invest money.
- Virtual and augmented reality. VR headsets have become a familiar gadget for many players, and solutions like Google Cardboard prove that today, this experience is available to every user. Providers offer a truly realistic picture.
Entrepreneurs do not need to manually create reports or plan work for several months in advance. These and other functions are available in CRM services — universal assistants for businesses.
The system comes along with the gambling platform but can also be ordered and connected separately. Its main task is to automate the routine tasks of operators. The program works with large amounts of data, offering the best way out of any situation.
The main features of the CRM service:
- collection and analysis of compartmentalised information and its conversion;
- formation of detailed reporting and analytics on key parameters of the activity of entrepreneurs;
- creation of a task plan and payment schedule;
- integration of partner solutions, etc.
The system can solve any problem, simplifying and speeding up the management of business processes in a casino. Operators will have more free time that can be spent on the strategic development of their projects.
iGaming platforms operate 24/7, and this is their main advantage compared to offline locations. Players can launch the reels in their favourite slots at any time of the day.
Customer service also remains at the highest level, regardless of when users turn to support staff. It could be done through a dedicated line in the call centre, by sending email messages, or by texting in a chatbot.
Accessibility from all parts of the globe is ensured thanks to the work of the websites in the .com domain zone.
Casino owners can legally accept bets from players from different countries only if such an activity is not prohibited by the laws of a particular jurisdiction. This approach allows businessmen to drive solvent Internet traffic, which eventually turns into regular customers.
This is a certain procedure, following which entrepreneurs will quickly implement a modern and commercially successful project.
The basic stages of opening an online casino:
- analysis of the market and the competitors’ offers;
- choice of the country for starting a business;
- purchase or lease of software (games, payment systems, and CRM services);
- creation of a UX design of a website with the elements of gamification;
- configuration of exchange operations and hosting;
- development of a marketing campaign and a bonus program.
For the successful operation of an iGaming platform, each stage is very important. Operators need to be patient to get a decent result.
One of the advantages of working in the online casino industry is the availability of various advertising methods.
You can promote a project with the help of:
- email newsletter;
- affiliate services;
- targeting on social media platforms, etc.
Entrepreneurs can choose which promotional tools and channels to use to get the most out of every dollar spent on advertising.
SEO makes it possible to improve the position of a gaming site and a mobile betting application in the search results of Google and other international systems.
The task of SMM is to attract the target audience from social networks.
Email newsletter helps to establish contact with previously verified users, increase the number of re-registrations, and inform customers about new slots and bonuses.
It is important for operators to rationally manage the advertising budget and choose only those promotion channels that bring real measurable results. This approach is called performance marketing. Its key advantage is a thorough analysis of the requests of the target audience.
Performance marketing allows business owners to:
- use a wide variety of advertising methods;
- segment the audience according to different parameters (age, interest, and nature of the game);
- perform a cross-cutting analysis of intermediate results.
The advertising plan can be easily adjusted, which is an important advantage of this tool promotion tool.
Outsourcing advertising functions is another way to successfully promote a gambling platform.
In this case, the task is performed by affiliates (private specialists or entire companies). For their work, they receive a decent reward depending on the performance of the casino.
Operators focus on:
- CPA (number of attracted leads);
- CR (conversion rate — the percentage of players who not only visited a gaming site but also performed a target action: clicked on a banner, registered, or made an initial deposit);
- GGR (gross gambling revenue — the sum of all bets placed by gamblers minus their winnings);
- ROI (return on investment).
It is better to cooperate with affiliates through special partner services. There are many additional options that make the job easier:
- arbitration of transactions;
- Internet traffic control;
- advertising materials (banners, templates, as well as text and video materials);
- special programs that return part of the commission fees, etc.
Operators rarely promote their projects without anyone’s help. Most often, they choose the performance marketing option or cooperate with affiliates.
The decision to start an online casino is the best choice for those who want to quickly enter the gambling market and start receiving good dividends in the short term.
iGaming platforms have the following advantages over other entertainment options:
- No seasonality factor. This is often faced by bookmakers (both offline and digital ones). The number of visitors to the betting shop decreases sharply in the off-season when there are no top matches. Online casinos do not have such a problem. The catalogue of games is updated with new products all year round so that the audience does not lose interest.
- 24/7 operation. Digital resources work day and night, which cannot be said about offline locations.
- Mobility. Several platforms can work on the same server and backend. These are online gambling resources, mobile versions of betting sites, a Telegram casino, and other interesting projects. The basis of such websites can be easily used to enter new target markets.
iGaming platforms are a respectable business with good returns.
- Over the past few years, the market has shown positive dynamics, and this trend will continue in the near future. Profit increase is observed in all key regions: North and South America, Europe, and Asia.
- The capitalisation of the sector is influenced by the high interest of the audience, the use of IT solutions, and the active digitalisation of the economy. Among the innovations that are available to entrepreneurs in 2024, we can name AI, machine learning technology, blockchain, as well as virtual and augmented reality.
- The advantages of launching an online casino include mobility and independence. Gaming sites operate 24/7, handle peak loads on infrastructure without any problems, and do not depend on seasonality.
- Promotion of gambling resources can be done independently by entrepreneurs or they can outsource this task. Affiliate marketing provides for the payment only for the final measurable result, which brings real income to the operators.
- Working on the market is profitable due to a clear promotion strategy, automation of key business processes, and simple acquisition of a licence.
The Online Casino Market studio can implement an iGaming project of any level of complexity. From us, it is also possible to order:
- a turnkey platform;
- a White Label gaming site;
- a Telegram casino;
- a resource with VR slots;
- a gambling script, and much more.
For all questions, please contact our managers.
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