How to Start a Web3 Casino
There has never been a better time to start an online casino, and more specifically, a Web3 casino. Regulators around the world continue to provide legal frameworks so that operators can legally provide their entertainment services to the public, while the costs of starting up with white label online casino software have gone down. As a result the online gambling industry is booming, and expected to be an industry valued at over $150 billion USD by 2030. In this article we are going to go over how to start a web3 casino.
The first steps towards starting an online casino may come as a surprise, as it is not finding or creating casino software. The first step is understanding the regulations in the regions you wish to operate in, and the licensing requirements that will enable you to operate in those areas legally. Licensing costs and the timeframe to be granted one vary depending on where you secure the license, and some licenses can be obtained in as little as a few weeks. Outside of obtaining your own license, some betting technology providers are able to let prospective iGaming operators utilize their existing license. For more on iGaming licenses, we have a comprehensive breakdown available here.
The next step is choosing a partner that will provide you with online casino software. For those looking to start a Web3 casino, there are far fewer technology providers available than there are for traditional iGaming solutions. When looking at technology providers and deciding on how to narrow the list down, there are a few core features to look for as a baseline. One of the most important features to run a successful iGaming business is the back office. In the iGaming industry, back office software is known as Player Account Management software (PAM). This is where operators manage their affiliate and bonus systems, craft marketing emails, monitor game and player stats, and so much more. Another must-have is ensuring your online casino is built with mobile devices in mind. Over 60% of the world’s internet traffic now stems from mobile devices, so if your platform is not mobile friendly, you are severely limiting your casino’s potential.
Why start a Web3 casino instead of a traditional one?
As briefly mentioned, there are not nearly as many betting technology providers that offer Web3 casino software when compared to traditional iGaming software. Even though you will have fewer options to look at, starting a Web3 casino brings a host of benefits to the operator that they are not able to have otherwise. It also means they will not have to worry about transitioning from legacy technology down the road.
At Lion Gaming our Web3 casino software comes built with the ability to accept over a thousand different cryptocurrencies, along with integrating popular wallet applications such as MetaMask. The use of cryptocurrencies means that operators have reduced transaction fees, since they do not have to pay credit card fees or 3rd party fees that are innate to fiat payment gateways such as Skrill. Not only are the transaction costs smaller, but there is also no risk of fraudulent transactions or chargeback claims since cryptocurrency transactions are irreversible. These few percentage points in savings bring a big boost to your profit margins since success in the iGaming industry is largely based on betting volume.
Along with reducing transaction costs a Web3 casino is necessary for an operator to offer on-chain wagering solutions to their customers. On-chain wagering uses smart contracts to handle the wagers that are placed, providing the ultimate in security for both the player and the house. This security exists because wagers using a smart contract are issued public receipts thanks to taking place over the blockchain, are automatically settled with the winning side of the wager being credited immediately, and with no possibility of a game malfunctioning since the smart contract will only execute within the parameters of the contract. Not all players will wish to wager on-chain, with some preferring off-chain wagering, which is why our Web3 casino software comes with both options available to players. Players are able to switch between on-chain or off-chain wagering by simply clicking the ON or OFF toggle.
The costs to start an online casino
Developing online casino software is expensive and can run into the 7 figure range. Thankfully for those looking to start an online casino, their costs are much lower thanks to white label online casino solutions. Today it is possible for someone to get started with a cost as little as a few thousand dollars. When looking at technology suppliers it is important to be mindful of not only the upfront cost they charge, but also the size of the Gross Gaming Revenue (GGR) share they will charge on a monthly basis . The revenue share will vary, sometimes substantially, across technology providers.
Ready to take the first step?
Our online casino software is attractively priced and is highly customizable to help your business stand out. If you are looking to start an online Web3 casino, contact us today at [email protected] for a free consultation on how we can help you get launched in the iGaming industry within just a few weeks.