According to a report by Statista, the total revenue of online gambling and betting is estimated at $12 billion in 2005 and 15.2 billion in 2006. In 2010, revenues were 29.3 billion. In 2017 it accounted for USD 45.8 billion and still, it is expected to peak up to 94.4 billion globally in 2024.
Online gambling and betting are indeed dominating the internet world.
It can be a tricky business to start, but it also has its advantages and rewards. Budding entrepreneurs who have their eyes set on this type of venture always ask the question, “What does it take to start an Online Gambling Business?”
Establishing an online gaming business is like finding a treasure without a map. It is hard to know where is where and what is what. Seeking advice from a business consultant might be a good way to draft a business plan. But, there are also several factors that must be taken into consideration before starting.
Listed below are some of the most fundamental factors you need to consider before establishing an online gambling business. These factors will serve as your guide to guaranteeing your success.
You will be needing the following:
- Knowledge of your Chosen Market
- In-depth Research on the Best Gambling Software Providers
- Online Gaming License
- Payment Providers
- Website for Promotions
- Effective Strategy
1. Know Your Market
You may think that the market is a brutal battlefield. Loads and loads of money are at stake and people are constantly trying to outwit each other to obtain it. You must be fully aware of the competition between business companies.
Mapping the market as well as knowing your competitors will give lots of advantages. You will be able to adapt more easily to the industries’ do’s and don’ts. This will also help you focus on key points of your strategies that cover the quality of the services that you plan to offer.
That being said, knowing your market and the industry you choose to work in also helps to gain the trust of your players/customers if you know the nature of your business.
2. Search For The Best Gambling Software Provider
Gambling software is categorized into different types with corresponding types of audiences. Most gambling software providers have a vast knowledge of the Online Gaming Industry.
Keep in mind that every software provider has a unique set of specifications. You also have to make sure that upon choosing your software provider, your criteria should include but not be limited to the following features:
- Complete access to featured events, contents, and betting markets
- Complete Overall Services
- Efficient Customer Support
- Excellent System for Gaming Management
- Flexible Multi-Currency Support
- Free Account Management
- Maximum Security Against Fraud
- User-friendly Payment Modules
Ensuring that your chosen gambling software is able to provide the aforementioned features will play a vital role in running your business.
3. Obtain An Online Gaming License
Several services are now made available online, and obtaining a license is important for business owners to show the legitimacy of their company and their services. Licensed services and software likewise convey to the customers that the business is operating under the rules and limitations set by the law.
When running an online gambling service, applying for a license in the country where you plan to operate is a must.
Obtaining a license can take a few months to a year, depending on the country. The cost varies on the country as well. Curacao has the lowest cost rate in obtaining a gambling license by far. Malta, Isle of Man and Gibraltar on the other hand offer the most expensive rates.
To obtain a license, you can follow either of these steps:
- Apply to an agency that works under the same industry. As said earlier, this will vary depending on the country where your business is being run.
- Partner up with a Gaming Software Provider for your assistance.
- Consider working under a White Label Solution. A White Label Solution helps you focus on your target market and your strategies and keep you from spending a lot of time and resources in obtaining an Online Gaming License.
Applying for a Gaming License is indeed time-consuming for it takes a lot of paperwork and effort. But then again, there is no gain without pain.
4. Choose A Payment Provider
In every business, whether in the gaming or non-gaming industry, nothing beats a fast and reliable payment system.
There are a lot of companies that offer payment solutions services but the most suitable service provider should be able to meet the following basic requirements for your business:
- Complete services
- Seamless payment transaction
- E-merchant integrations
- Multi-currency support
- Maximum security and fraud detection
Additionally, enabling multiple payment options is advisable. Having the easiest payment mechanism matched with the right choice of market and high-standard services will help improve your customers’ gaming experience and boost customer loyalty.
5. Work On A Website For Promotions
Another strategy to consider is to build and design a website for your online gambling business. The site should be eye-catching and at the same time informative and easy to navigate to keep your site visitors engaged.
Remember to keep your website’s overall design relevant to the theme of your services. Do not overload your site with unnecessary concepts and designs. Go for simple yet efficient designs.
Furthermore, use the influence of social media and other internet platforms to your advantage. This is an effective way to bolster and increase the extent of your campaigns. Use it to promote the services and features you are offering.
Make your promotions interactive by encouraging audience participation. After all, if the experience of In-play Betting or Live Streaming is absent, it will hardly retain your user’s interest.
A connection between you and your customers can help you understand their preferences and demands better. Reach out to them and make sure your customer support channels are easily accessible to your audience.
6. Effective Strategies
Thinking beyond the boundaries of your chosen market is another good way for you to be able to keep your pace in the competition. Operating with limited offers will make your customers lose interest and opt for other companies offering better services and features.
Make your offers as diverse and enticing as you can. Think of your services as something akin to a coffee shop where even the preferences of non-coffee drinkers is taken into account. This is how you should work with your marketing strategy.
For instance, if you are focusing on betting and sportsbook, why not include offers such as casino games, live casino, and virtual sports? Customers have different tastes, and that is why adding more choices on your menu can help you bolster the number of customers that will possibly enjoy your services. Just always keep in mind that you should know how to diversify and consistently update your offers.
To sum it all up, starting an online gaming or gambling business requires a lot of focus and effort. You need to know the rules, advantages, disadvantages and risks that come with the market that you are targeting. You must also know how to be adaptive in any circumstances.
Work with reliable partners to help strengthen the bond between you and your customers. Be in tune with what services and features potential customers seek. Set your goals. Legitimacy and technicalities should be taken into consideration as well. Always operate your business under legal boundaries.
More importantly, always keep in mind to stay updated with the latest industry trends and keep high-quality standards. By following the steps mentioned above, you are gearing your business towards long-term development and success.
Given the conditions and steps on how you can start your own online gambling business, are you ready to dominate the online gaming industry?