Foreword｜Money88
You are unlikely to build a brick-and-mortar casino if you don’t get funding from the rich. If this is the case, and we all know it is, then your efforts to start a brand new casino operation should be focused on the Internet.
So forget about opening in Las Vegas, how much does it cost to raise the necessary capital to start your own online casino?
Well, one benefit is that e-casinos do away with overhead, which affects setup time and technology. Every consideration that needs to be taken into account with physical construction is now irrelevant.
At first glance, opening an online casino may seem like a ridiculous idea, even a bit overbearing. Not only is this a relatively new market, but it is often subject to legislative turmoil, especially internationally. Then, of course, there’s the whole host and ever-growing list of contenders all vying for the same dollar.
Some people already have the support or credit needed to start the road to casino ownership. For others, the affiliate option of promoting another company’s casino offers a more realistic route into the industry, and with monthly royalties as high as 35%, there is some margin to be earned while the parent company takes the risk and marketing strategies.
Technical Questions – Deciding on Your Software｜Money88
Once you’ve decided to venture out into full ownership of the casino and bring your team together, you’ll need to decide on the software platform that will host your games. This will dictate the style of casino you intend to operate, or the style of casino you intend to operate will dictate your software client decisions.
Another way is to develop your online casino from scratch, starting from a blank page, keeping the idea that inspired you in the first place. It takes time, dedication, drive, ideal experience and lots of wonga. Development kits range in price from $100,000 to $300,000, and most come with company royalties of 15-45% on any net profit, which can often be reduced with higher royalties.
Since there are very few jurisdictions around the world that offer online gambling, you should choose the ‘hosting’ location where you put your server, in the one that best suits your needs. The Isle of Man, Malta, and Gibraltar are all popular in Europe, while the Dutch islands of Antigua and Aruba and the Antilles attract many Caribbean online casinos.
Casino operators choose these locations carefully for reasons including the reputation and living conditions of their employees, the location’s telecommunications infrastructure, and existing internet gambling tax policies. For example, Gibraltar, while under UK sovereignty, does not pay the same taxes as UK-based operators, making it a popular choice for many UK operators.
Again, Antigua is a popular choice and was one of the first jurisdictions to license internet gaming. An Antigua license costs around $100,000 at a casino and an extra $60,000 at sports betting, while in Gibraltar a coast license costs £2,000 a year.
So before we even thought about anything else, we’d racked up $500,000 in setup costs. Issues like hardware, branding, marketing, banking partners and funding. Considering the other costs mentioned above, a conservative estimate is at least around $1-2 million. A lot of course, but worth it.
Is it worth the cost?｜Money88
Building an online casino is a very difficult and engaging process that can be time-consuming and financially difficult, however, even spending $1 million a well-run casino site will or should at least see returns.
It’s an old saying; you have to spend money to make money. After launching at a cost of $1 million, you need to see a return on investment. The key to running a successful online casino is of course marketing.
A well run casino that doesn’t have enough internet traffic is actually a poorly run casino and you can say goodbye to your investment. So marketing becomes crucial, and it’s wise to spend big here. Most up and coming online casinos allow around $50,000 per month for marketing. Of course, the big boys allot more.
Add up the cost of license, software and hardware, personnel, location, brand, etc., none of which can be sloppy and cut corners. It can be seen that the cost is high everywhere, and it must be beyond the reach of many ordinary people. However, if you happen to have a dollar or two to spare behind the couch, it might be worth the gamble.
