How To Start An Online Casino
To say that the global gambling industry is booming would be an understatement. The global online gambling market size was valued at $63.53 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 11.7% from 2023 to 2030. More countries and jurisdictions are beginning to regulate online casinos, meaning that more opportunities will be available in coming years for savvy entrepreneurs and businesses to start an online casino.
At first glance it might seem like there would be a lot of red tape to start an online casino, but with a provider like Lion Gaming the process can be simple and fast. Believe it or not, you can start an online gambling operation in just a few weeks if you choose the right partner.
What you need to start an online casino
There are several things that you need to account for when starting an online casino. First, you need to understand the licensing requirements for the jurisdictions and countries that you plan to operate in. For example, gambling isn’t regulated at the federal level in the United States. Licenses requirements and restrictions vary state-by-state, and securing a license in one of the U.S. states can be quite costly and time consuming.
There are other options for online casino operators who want to secure gambling licenses quickly, cost-effectively, and most importantly – legally. For example, Curaçao is a popular online gambling licensing regime that allows online casino operators to take bets from most of the world. In many cases, the cost to secure a gambling license from Curaçao takes as little as a few weeks. It is also one of the most cost-effective places to get a license – with a price tag in the low 5-figure range compared to hundreds of thousands or millions of dollars in other parts of the world. For more on gambling licenses, you can read our article titled Gambling Licenses: What iGaming Operators Need To Know.
Choosing the right online casino software
Now that you have licensing figured out, it’s time to think about your online casino platform. You want your online casino to be unique and stand out among the thousands of other online casinos out there. In order to provide an exceptional betting experience for your players, you need to ensure that their casino software is built for mobile devices, that your online casino is customized to your unique brand, and that you have the back-office tools necessary to market to your players monitor your operation.
White label casino software is a popular choice for potential operators because it allows them to have all the above in a fraction of the time and cost it would take to develop your own online casino software. But keep in mind, not all online casino platforms are created equal. We created 20 Questions To Ask Betting Technology Providers as a handy resource for those looking to start an online casino operation. Feel free to refer to this resource when you’re evaluating the online casino technology partner that you will be relying on to have a successful business.
Payment methods for online casinos
The next thing that online casino operators need to factor into their decision-making process is the types of payment methods they want to offer their players. There are a variety of payment methods available including direct deposits from bank accounts, credit card payments, and the growing popularity of crypto payments and crypto gambling. There are a lot of online casino technology providers on the market, but not all can offer every payment method that potential operators are looking for. Particularly for operators who want the ability to accept cryptocurrency on their websites, it’s important that their platform is capable of accepting crypto payments and has web3 wallet integration. For more on starting an online casino that accepts crypto, we invite you to learn about the Fer0x Casino platform by Lion Gaming.
Costs to start an online casino
Now that you’ve thought about the licensing requirements, the importance of the technology that supports your casino operation, and what kind of payments you want to accept from your players, it’s time to look at all the costs involved. If you’re developing your casino technology from the ground-up, the costs could be in the high six-figure to low-seven figure range when accounting for all the developers, lawyers, certifications, and time required to build your solution from scratch.
The cheaper and quicker option is white label casino technology which was mentioned before. Reliable casino technology providers can charge anywhere from a few thousand dollars to over a hundred thousand dollars for their white label online casino software. Some of the legacy providers in the industry are more expensive than others, and still don’t offer the advanced technology that modern bettors demand.
In addition to the upfront licensing fees associated with licensing online casino platform software, most providers also charge a percentage of your Gross Gaming Revenue (GGR) on a monthly basis. Again, some technology providers charge a higher percentage of revenue share than others, so make sure that you factor that into your evaluation.
To get more familiar with terms and definitions commonly used in the iGaming industry, we encourage new and prospective online casino operators to browse our iGaming Glossary right here.
At Lion Gaming we’ve developed a white label casino platform that checks all the boxes that operators should look for. If you’re ready to start your own online casino, contact us today to learn more about Lion Gaming’s Fer0x Engine and how we are pioneering the future of the iGaming industry.