Online gambling has always been one of the most lucrative and desirable areas to explore for business owners despite of whether they have experience in the field. In order to open a successful online casino that will benefit an owner and bring pleasure to customers, one needs to follow the proper sequence of steps paying serious attention to all details. As an online casino software provider SoftSwiss is glad to share its experience to help future online casino owners avoid common mistakes that may impede business launch, inflate budget or even close the business down.
Step 1. Preparation
You need to buy the land. Get the plans for the Casino. You need the permits for the construction, gambling licenses, alcohol, food, hotel etc. You need to buy the furnishings, gaming tables, slot machines, security. The cost of promoting an online casino can vary from 20 to 100 thousand dollars a month. The high cost is due to the prohibition of gambling ads on Google, YouTube, Facebook and Instagram. As a result, you will have to spend quite large amounts on creating SEO content and paying partners. Offshore countries like Curacao, Costa Rica, and Gibraltar typically charge between $15,000 to $20,000 per year for a license and are some of the most popular areas to register. An authoritative license will cost at least $ 35,000 per year. It will also be necessary to pay a number of fees and charges, provide financial reporting, and pay taxes.
a) Legal issues
Online gambling is a subject to licensing, thus an essential thing is to think about choosing the jurisdiction and obtaining a license. There are two main venues where it can be done: offshore countries and the European Union countries. Each has their pros and cons – budget, time, reputation. Usually it takes from a couple of months to a year to obtain a gaming license, for example, 6 months in Malta.
The next step after choosing the jurisdiction is to register a legal entity – a gaming company, opening a bank account and making agreements with payment system providers which will make the legal and financial infrastructure complete.
As an alternative to this method there is a “White Label” scheme which means leasing of software together with the gaming license and financial infrastructure from a software provider and operating your casino under your own brand but with the ready-to-use infrastructure. Such a scheme protects from excessive legal and banking bothers but involves additional costs.
b) Software
As soon as all legal issues are investigated separately or simultaneously, it is time to choose a professional online casino software provider. While searching the market it is wise to evaluate the price and quality balance. Besides the attractive design and a set of popular games, a quality product shall also include a reliable gaming platform which allows for effective management of casino business and includes the following components:
• CMS
• Player management system
• Bonus and promotions management system
• Game management system
• Payment system management interface
• Cashier system
• Reporting engine
• Support of different roles for administrators
• Affiliate management system
• Anti-fraud system
• Retention email system
Regular software and game updates, hosting and technical support shall also be part of the provider’s package. Professional suppliers always take the responsibility for the full technical support of the after-launch product operation.
The software package that includes all of the above components might be on the upper edge in terms of costs, but the financial investments are worth it because as a result you get a reliable partner ready to support you during the whole project life cycle. Be aware of the fact that buying a cheaper solution might result in double spending in the future.
c) Marketing planning
An effective marketing strategy is a key point to online casino success. At this stage it is strategically correct to make a rigid competitors research. First of all, it will provide you with a full picture of the market: who the leaders are, what strategies they use, what return on investment they get, etc. Thus, knowing the game rules allows creating a unique offer which customers won’t be able to decline. Using the method of benchmarking plays perfect for the good of online casino success, and what is more important, it is free. Plan your marketing strategy by adapting the best practices of promotion, advertising, and brand development.
If a company starting an online casino is operating land-based gaming business, it is crucial to bring the existing clients to play in Internet casino by offering attractive bonuses and thus developing loyalty and respect to the website. Any know-how are always welcome but be aware of wrong calculated ideas from the mathematical point of view.
The next move is to contact internet marketing companies or individuals specializing in online gambling: SEO agencies, email marketing companies, media resources providing casino overviews, etc. This will help define the best offers on the market and choose the right partners before the website is ready to launch.
At this stage, it is also time to think about your future bonus policy and affiliate marketing strategy, as well as check if the selected software provides the appropriate technical opportunities.
d) Budgeting
Once the costs for legal issues, software and marketing are defined, it’s time to plan your budget. The best option for startup companies is to set the budget at least for the first year of operation, whereas for experienced companies who are entering the igaming market, the budget shall be defined for as long as possible. Don’t plan your budget after setting up the online casino website, plan it before. If you are a startup-company you have to understand that your costs will be higher. Your goal is to earn trust of players from the beginning. Existing land-based brands already have trust.
Below there is an approximate expenses separation a future casino owner shall have in mind while developing a detailed budget within a business plan.
| Pre-Launch expenses | After-Launch expenses, 1st year |
| Company set up – 3-7% | Company running – 5% |
| License set up – 10-30% | License fees – 1-10% |
| Software set up – 25- 35% | Software support – 10% |
| Staff hiring – 10-20% | Games Providers – 5% |
| Pre-Marketing – 15-20% | Marketing – 50% |
| Other costs – 5-15% | Staff – 20-30% |
At the pre-launch stage the biggest budget share shall be devoted to software set-up in order to provide future users with quality product. But after the launch it is vitally important to address half the funds to casino marketing and promotion.
Step 2. Launch
The time frame for online casino launch depends on both, business owner and software provider. Usually it takes up to 3 months for the provider to set up the software. It includes web site design, platform and games set up, custom settings and possible individual features. The business owner may speed up the process of launch by providing regular feedback to all questions that designers and programmers might have. Any issue can be resolved if discussed in time.
Besides, the business owner shall timely address the issues discussed above:
• Obtaining a gaming license;
• Opening a corporate bank account and merchant account;
• Making agreements with payment system providers.
Setting legal and financial infrastructure is the task that only the business owner can accomplish. In SoftSwiss we provide consulting services (best options, contacts, etc.) on such points but we can’t guarantee success as the whole responsibility lies on the business owner. You will have to collect a bunch of documents for lawyers and banks like certified passport copy, utility bill copy, certificate of non-criminal records…
Step 3. Marketing
The secret of the most popular and successful online casino success and popularity is not about the top-notch design or billions of games included. The best online casinos are simply designed and contain 500 games on average at the beginning. The secret is in responsible marketing strategy implemented on all stages of the project. Online casino market is an extremely competitive one: first, it is very hard to break into it, and then it is even harder to take a firm stand. Thus, a company has only one chance to win the fierce race among competitors. Below is a list of points that are vital for any online casino that is planning to be prosperous.
• Positioning – Gather professional marketing team and develop strategic and tactical development phases, announce your goals (business, company, brand), and mission. Determine what niche you would like to step in, how you are different from the competitors, what unique features your casino has, and what steps you are going to make further.
Use only quality games from trusted game-providers. You can start your casino with a limited number of game providers, with focus on games based on HTML 5 technology. This technology allows users to enjoy rich graphics games and enhance the overall experience with playing casino games on mobile devices. At SoftSwiss, among our own high-quality HTML5 games we offer game content from the well-known providers, such as Amatic Industries, Microgaming, NetEnt, and we are sure about their quality.
• Prelaunch advertising campaign – Announce your casino, inspire your potential customers to wait for its launch; use all possible methods: online advertising, presentations, publications, etc.
• Online casino promotion after launch – Use SEO, online advertising, banner networks. Everything will work on such a competitive market.
• Client attraction and retention campaign – Establish an efficient support service or 24h call-center which your customers can address at any time. Take care of your clients by making navigation through the website: create “How to” sections or FAQs, write manuals on how to play the games, provide demo versions, make everything clear and understandable.
Develop a bonus system, make auctions and entertain and reward your customers all the time.
Remember! Only business owner can establish the right content on the page. The software provider should give you the possibility to work with the content, but not create the content.
•Implement affiliate networks – Develop contacts with partners which will be an impetus to online casino development.
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Additional Step 4. Bitcoin casino
Forward looking online casino software providers offer Bitcoin as an alternative payment system for their solutions. Online casino owners all over the world appreciated such advantages of Bitcoin casino as significant savings on license application costs and monthly fees, increased customer loyalty, fast payment processing and many more.
As an acknowledged Bitcoin casino experts, SoftSwiss would like to recommend all potential Bitcoin casino owners to get a clear understanding of the crypto currency, research on the peculiarities of Bitcoin gambling, and learn how transactions work by making a couple of bets at an existing casino. Understanding the core of the payment system is essential in business, moreover it will help to build a strong marketing campaign and further manage the Bitcoin casino. Contact SoftSwiss for professional advice on Bitcoin casino launch.
Managing an online casino is hard work but with all legal and financial issues resolved in a timely manner, quality software chosen and a strong marketing strategy in place, it can be successful. The demand for online casinos will increase – specialists predict 40% growth of this market segment in the nearest year. Following all the steps described above will help a newly made online casino to develop sustainably and outweigh the competition. Good luck!
Also learn how to start an online casino with SoftSwiss.
Thinking of starting an online casino affiliate business? Well, just create a website, post some content, get some backlinks, put up some banners and direct traffic to online casinos; thereafter it’d be just about sitting back and watching the money roll in, right?! Not exactly!
Although many people manage to make a living from affiliate marketing, 95% of them fail to make any profit initially and give up soon after starting.
One of the many reasons why these people fail is because they don’t work with reliable casino establishments. For instance, All Slots casino games are promoted by a great multitude of casino affiliate marketers, who profit heavily by sending quality leads to the portal.
Furthermore, anyone serious about succeeding at Casino affiliate marketing should also get acquainted with some more important facts related to the business.
Starting with the right partner
Majority of the Casino affiliate networks create programs in such a way that it’s a win-win situation for everyone. However, there might be certain entities who take undue advantage of newbies. Please be aware:
- You must get a written contract clearly stating how and when will the payments come
- You’d need to invest a certain amount of money and plenty of time to succeed in this field
- You’d normally never be charged anything for joining a casino affiliate network
- It’s not necessary to have a website in order to promote a casino website
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Locating trustworthy partners
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Casino affiliate marketing is mostly done based on trust, however, as in any other industry, you can’t expect everyone to operate in a trustworthy way. There would always be some rogue casino establishments that would find different ways of holding back affiliate commissions, sometimes going to the extent of shutting down their operations! That’s why it’s very important to work only with reliable online casinos like ‘All Slots’ and the similar kinds.
Commissions and payments
The commissions offered by casinos may vary from 25% to 30% of the players’ bet amounts. However, affiliates who send high-volume traffic and generate plenty of revenue for their associate casino establishments are known to make anywhere around 50% to 60%. Furthermore, you might even be offered a percentage in case your players continue playing at the casino over the long term. The majority of casino partners aggregate the commissions and then make direct deposits or send out checks during the middle part of the month (for previous month’s commissions)
How to promote
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Even though you don’t necessarily have to have a website to sign up as an affiliate, you should preferably invest into one if you are serious about casino affiliate business. Don’t worry if you’re not very tech-savvy as you can easily hire inexpensive freelancers to do the most of the work for you. After your website is ready, you must invest some money in good-quality content and do a certain amount of search engine optimization too.
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Setting up social media accounts for your business on websites like LinkedIn, Facebook, Twitter etc. is also critical.
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There are a number of different ways you can market your casino affiliate website – through YouTube videos, mobile marketing campaigns, email campaigns, social media marketing and more.