Published on February 7th, 2021 | by Bibhuranjan0
The Cost of Running an Online Casino
According to Coherent Market Insight, the global gambling market is projected to grow by about 11.4% over the years through 2026. Running an online casino is soon going to be a promising business idea to venture into. The market is currently valued at over $50 billion, and it keeps growing significantly.
While the market seems lucrative and fertile to invest in, it is also expensive setting up an online casino. From this piece, you will find out it will cost you to open an online casino. The investment in capital, assets, game content and other costs are all well-laid out below.
1. The Cost of Registration
Registering your online casino helps to set your business on the right terms with the law. You will also be able to open the right type of bank account for the business upon registration. Once you’ve registered, you can easily enter into a contract with your suppliers and business partners.
The cost of registering a casino varies from one country to another. For instance, the UK charges 550 euros, and it takes only two working days to complete the registration. In the USA, you will spend anything from 200 euros to register a casino, and you will have to wait for about one to 24 hours for the certificates to be ready.
If you are interested in opening an Australian real money casino, you have to get about 300 euros just for registration.
2. Cost of Purchasing a Software
There is no online casino without the software. Software is a critical component in managing an online casino. Every success and future development you will achieve with your online casino depends on whether your software is capable, reliable, and functional. It has to portray a stylish and expensive design to be able to attract new visitors.
The gaming platform contains the following programs:
- The Game Platform
This platform is created to manage platform resources, administer and streamline user accounts. Since this is the basis on which your site will be operating, the prices are high. You will have to part with at least $10,000 on the lower side, and sometimes you can pay up to $500,000 for the same on the higher side.
- The Game Content
These involve every game, slot, and lotteries the player will access at your casino upon request. The game content software was traditionally sold with slot machines, but today one can buy them separately. The game content software prices range from $200 to $5000 with an additional commission. If you want to minimize cost, it is best to buy the games in bulk from providers and enjoy economies of scale.
- The Payment Programs
It is equally important for you and your clients to have payment programs that can be trusted. These programs make it possible for clients to transact easily with your casino, and the more they are, the better the platform is for your clients. It will cost you about $20,000 every month to create such a program.
3. Marketing Cost
It would be much easier to market gambling sites online if Facebook and Google allowed them. But since these two major marketing platforms don’t support online casino marketing, you have to invest in the options available.
First, you need to know the laws surrounding the gambling niche. After that, you will have to look for an expert familiar with the legal requirements in the online casino niche. The expert will help you break down all the legal requirements and guide you through the complex gambling market.
The online casino industry is always on the government’s watch list, and each nation imposes huge fines and jail terms to those found guilty. If you don’t have a good lawyer, you may end up as a victim whenever you flout any marketing laws. You will have to part with at least $1,500 monthly for a good lawyer, excluding the actual marketing cost, which you will budget for separately.
4. Staff Remuneration Cost
You will be forgiven to think that online casinos don’t need stuff; they do. You will need between 7–10 staff members for your casino to operate seamlessly and effectively. These staff’s main duty is to answer customer needs on call 24/7 and ensure daily operations are run effectively.
You will not be doing everything yourself, so you will need an affiliate manager to manage the website and a manager who is specialized in customer retention. Since it is majorly an online casino, you will need IT specialists on standby to help whenever there is a system breakdown.
The projected upper limit cost for managing your staff per year could be anything around $250,000. However, if you live in or operate from a country where the cost of living is low, you may pay less than this.
The Estimated Cost of Setting up an Online Casino
- Setting up a Software – Get at least $300,000 for reputable software.
- Marketing and affiliate payments – $500,000 or less, depending on your state rules.
- Staff Management – $200,000, and it could be more or less depending on the country you’re operating from and the number of staff you have.
- The Reserve fund – $500,000 would work well to cover against losses.
Owning an online casino is no mere investment. It will cost you a fortune to see your business in full operation and active gambling activities. It might be a big business to embrace shortly, especially with the industry’s already projected massive growth. If this is your niche of preference, then follow the rules and join the game.
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