How to Start an Online Casino Business

Opening an online casino business has never been as profitable as it is now. The online gambling industry is booming, with new high-tech features, high availability of games, and constantly increasing traffic to web gaming platforms. Easy accessibility of modern online casinos and top-notch tech becoming part of the daily routine has influenced the growth of interest from those who had not previously considered online gambling. Smartphones changed the game and made many interested in gaming on the go and throughout the day. So, let’s find out how to start an online casino, what benefits such a business brings, and how it works.

Obtaining a gambling licence is one of the most important stages in starting an online casino. It is perhaps the longest, most responsible, and requires significant investment in setting up a gambling operation. Initially, you need to choose and study the market you are about to expand with your casino. It is crucial to make sure that your actions don’t contradict the legislation and prohibitions of a particular country.

Every business model is unique, and different jurisdictions propose a variety of licensing options to suit all possible needs and requirements. Offshore gambling licences are by far the most popular due to a combination of cost efficiency, modernised structure, tax optimization opportunities, and increased adaptability.

Allyant Group provides a wide range of business support services to other companies. One type of such service is business registration and licensing. Allyant Group’s team of professionals guides you through the process of applying for a license after registration. You will receive a wide range of information from us and will get the info you need to open an online casino in any jurisdiction you like.

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A gambling licence is needed to legally launch any gambling business: online casino, land-based casino, lottery, sportsbook, etc. Despite the fact that obtaining a permit for gambling activities is associated with fulfilling jurisdictional requirements (for example, financial reporting, protecting the rights of gamblers, payment taxes, and compliance with legislation), such permission provides significant advantages.

1. Cooperation with financial institutions for legal transactions with money. Licensing authorities check applicants for criminal records and reputation. For banks, permitting documentation for gambling activities is a guarantee that transactions were involved in illegal money circulation.
2. Transactions with payment processing system developers. Payment for gambling with cryptocurrency and the availability of traditional fiat money are critical for casinos. And providers of such services require a licence from the casino.
3. Cooperation with gaming providers. The creators of gambling games work only with registered enterprises. You need a lot of game content to work with players and enter other markets. Without a licence, there will be no new content.

There are many criteria to consider when choosing a jurisdiction to open an online casino business. They relate to tax policy, variety of licences, security, and stability. Here are some questions to consider first:

– What types of games are licensed?

– What is the amount of licence taxes in a particular jurisdiction?

– What are the initial costs for independent testing and auditing?

– what payment methods are available?

– Does the law of the jurisdiction require the placement of technical infrastructure on its territory?

– What are the requirements for opening representative offices in a specific jurisdiction?

– What jurisdictional structures are responsible for gambling regulation?

Allyant group pays maximum attention to the degree of regulation of the gambling business in the region where your online casino activity is planned.

Curacao
Considered one of the most reliable countries for licensing, it has a single application form for bookmakers, slot machines, bingo, lotteries and casinos. You must register with the Antilles Chamber of Commerce to get a Curacao gaming licence.

Malta
The level of reliability is very high, but the procedure takes a little longer. Also, there is a fairly large list of fees, which is revised depending on the client’s area of activity.

Great Britain
UK legislation promotes gambling entrepreneurs. Local businesses pay tax contributions at low-interest rates, and non-residents are exempt from most financial costs and commissions.

Alderney
Obtaining a gambling licence abroad on this island allows the operator to accept bets from gamers from all over the planet. Among the advantages are a low level of taxation of citizens and non-residents, no income tax, and short terms for consideration of the request.

Isle of Man
This offshore territory is one of the most prestigious to open an online casino. Among the advantages are the reputation of the regulator, low taxation – in the amount of 1.5% of income, and a single licence for all types of gambling.Gibraltar
Among the advantages of a licence are low taxation, a licence for different types of games, prestige and a high reputation of the jurisdiction. Also, important: the state actively promotes the development of the gambling sector by providing guarantees to licensees.

Applying for a gambling licence is a complex process. It varies by jurisdiction and type of activity, so here’s a template process with requirements and factors to consider regardless of jurisdiction.

1. Choice of jurisdiction. Select the country in which to launch your business. Review the legal entity requirements in your specific jurisdiction.
2. Licence type. Determine the type of licence that suits your company.
3. Creation of a company. Register the business in accordance with the laws of the jurisdiction.
4. Preparation of documents. Prepare certificates, statements and other papers necessary for filing the application. Typically, this includes a business plan, financial reports, and information about the organisers and managers.
5. Drawing up an application. Fill out the application, adhering to the requirements of the regulator.
6. Filing an application. Submit the application and supporting documents to the regulatory authority.
7. Fees. Pay all licensing fees and duties.
8. Checking and processing. Wait until the regulatory authority reviews the application and examines the financial stability and legal activities of the company.
9. Issuance of a licence. In case of a positive decision on the application and inspection, obtain permitting documentation.

Applying for a gaming licence is a legal process that requires careful consideration of the requirements of a particular jurisdiction. Allyant group specialists will accompany you throughout the entire legalisation process. We will explain to you how to make an online casino and help you choose a jurisdiction to legalise your business and promptly resolve all possible problems.

Create a detailed business plan that describes the organisation’s goals, strategies, and plans for the online gambling industry. The business plan should also include a market analysis to understand the target audience, competition and potential demand for services.

A business plan is a detailed description of your project with calculations and prospects for the next few years. Potential investors or the bank you go to for a loan need the following details about the project: partners, intermediaries, team info and, ultimately, the story of you as the creator of the project.

A business plan is usually written three to five years in advance. But you can take a year since economic conditions change quickly. The main task of a business plan is to convince potential partners that this is an interesting project from an investment point of view that will recoup the money and effort invested.

A business plan includes a description of a product or service, a market analysis, a production plan, the organisational structure of the company, a marketing strategy and a financial plan that summarises all the basic calculations. A business plan must answer the questions: how much money is required to launch the project, and in what time frame will it pay off? Each business plan is drawn up in stages.

Stage 1. Analysis of the Online Gambling Market

When writing a casino business plan, do a competitor analysis to determine primary and secondary competitors. That is, identify casinos that operate in the same direction and in the same target market, those that are your direct competitors. Indirect competitors are those who satisfy another demand in the same market or the same need in another market. Considering both, you must determine the differences between your casino and their projects.

Stage 2. Determining the Target Audience

One must take into account the fact that gambling participation rates vary around the world. Europe shows a very high level of online gambling participation. North America remains the fastest-growing segment. Asia, Australia, and Latin America are involved in online gambling and generate a significant portion of global gaming revenue. Africa is an underdeveloped region for the expansion of online gambling: the development of online gambling in Africa is hampered by laws that allow only those companies that already have land-based casinos to open online destinations. In addition to the territorial criterion of target audiences, there are others, for example, gender: recent research shows that at the moment, more and more women prefer gambling.

Stage 3. Search for investors

Expense planning is one of the main tasks. How much will you spend on tangible and intangible resources? How much does it cost to attract a new player and retain them? You must have a clear investment plan with return and profit forecasts.

Stage 4. Profit Planning

Since casino profits are built on the “House Edge” principle, the bets placed by customers must cover the payout costs. For example, if each user leaves $10 in your casino, then with a daily visit of 100 people, your earnings will be $1,000. With the active promotion of online casinos, you can significantly increase the amount of profit.

Stage 5. Player Attraction Strategy

User attraction strategy is an important part of your business model. Even if your online casino fully meets all of your audience’s preferences, foreign gamblers will not come if they do not know about the existence of your product. You need to create ways to attract players. In addition, it is important to draw up a list of possible partners, determine promotion channels and conduct customer segmentation.

Stage 6. Recruitment

The primary task is to create technical support for the site to ensure its proper round-the-clock operation and constant monitoring of what is happening in the casino. In addition, you will need an SMM specialist (promotion of online casinos on social networks) and an SEO expert (raising online casinos to higher positions in search engine results) who will promote your online casino. In addition to the above-mentioned specialists, you need a person who will monitor the withdrawal and receipt of funds in the online casino. You will also need an accountant to prepare business reports.

Budgeting is an integral part of financial planning in any business. To use the full potential of budgeting to develop your online casino business, you need to do the following:

1. Setting clear goals and strategies

The first step to effective budgeting is defining clear goals and strategies for your business. What do you want to achieve in the next financial year? What strategic decisions and investments will allow you to achieve this? Answering these questions will help you form the basis for developing a budget.

2. Analysis of historical data

Using historical data is an important step in budgeting. Review past financial performance and trends to understand what factors and variables impact your business. This will allow you to make more accurate forecasts and take into account possible risks and uncertainties.

3. Prioritisation

When resources are limited, it is important to set priorities correctly. Identify the most important areas of your business that require additional investment. You can include pre-launch costs and post-launch costs in the expense line of your business plan. The first option includes the cost of a licence and high-quality software. The second includes employee salaries, investments in development, etc.

4. Flexibility and Adaptability

In modern business, it is impossible to anticipate all the changes and challenges that will be encountered. Therefore, it is important to create a flexible budget that can adapt to new circumstances. Include the ability to review your budget throughout the year and respond to changes in the economic environment and consumer preferences.

5. Communication and Feedback

Budgeting should be a team effort that involves not only the finance department but also other key stakeholders in the business. Ensure open communication and feedback with various departments and employees to ensure that their views and ideas are taken into account when developing the budget. It will also help create a sense of ownership and responsibility for achieving your financial goals.

A corporate services provider is a company whose scope of activity extends to providing business support services to client companies. These services are part of global business process outsourcing (BPO) and specifically represent accounting and administrative business operations.

Today, corporate service providers are becoming increasingly in demand for doing business, because maintaining a large staff of employees is unprofitable for organisations. There is no need to pay money for a large office renting, there is no need to expand the staff, there is no need to compete with other online casino business owners in hiring highly specialised professionals if you can outsource administrative and accounting functions to a highly reputable corporate services provider.

As a result, the client company reduces operating costs, reduces dependence on personnel, gets rid of non-essential employee expenses, gains access to highly professional personnel and can focus on its core business.

Among the services that a corporate services provider offers to a client are business registration and licensing, tax compliance, financial reporting and compliance procedures for regulatory authorities. In addition, outsourcing corporate services includes ensuring the smooth functioning of the back office (processing payments, payroll, etc.), preparing legal documents, opening a bank account and managing this account. The client is offered maintenance of current KYC documents, renewal of registration, and licences, as well as assistance in purchasing and maintaining a domain.

A client company interested in obtaining a gaming license from one of the international jurisdictions can also contact a corporate services provider. The entire process of completing and submitting an application for a gaming license is monitored by the supplier scrupulously, and the supplier’s reputational connections in the required jurisdiction are used to ensure a successful outcome of the procedure. For example, thanks to the Allyant group’s cooperation with the authorities and financial authorities of Curacao, it is possible to obtain a license from this jurisdiction in the shortest possible time. Accordingly, the Curacao company formation process is carried out quickly and seamlessly.

There are many companies in the industry that offer online casino software. In such cases, it is necessary to approach the choice of a partner very carefully and responsibly and consider both local and foreign companies.

Providers offer separate platforms to start an online casino business, for example, managing customer data, payments, bonus systems, loyalty programs, receiving reports in real-time, integration systems with game manufacturers, as well as services for managing all provided platforms.

Prices, as well as systems, may vary among providers, but if you do not know how to start an online gambling business, then it is better to trust professionals with extensive experience in business and a good portfolio.

When choosing software, you should pay attention to the following parameters: software quality, its release date and relevance; quality of graphics, and sound; variety and quantity of the proposed set of game content; the ability to regularly update and replenish the software; ability to quickly and easily integrate with software products from various developers.

The functional platform includes features such as quality software, as well as proven and attractive games and reliable and fast payment systems. Let’s look at each point in more detail.

First of all, software for online casinos is a gaming platform, that is, software that will be integrated into your already prepared website and will ensure the functionality and operation of the gaming platform. This includes an interactive, complex UX, user-friendly interface, technically flawless CRM, means of connecting gamblers with online casinos, as well as security measures to combat fraud. For this purpose, measures such as Know Your Customer (KYC) and the Anti-Money Laundering (AML) policy are applied.

To become the owner of the software and start an online casino, the online gambling businessman can choose from the following options:
1. Development of completely custom software. This process is long and requires a lot of investment, but you will have complete control over the source code, gameplay and all applications used. In addition, you retain the copyright to the software and you will not have to pay royalties or charge additional fees to the software provider.

2. Purchase of ready-made software. There are companies that help with opening their casinos. Companies provide you with software, a website, and also help with website maintenance. This is one of the easiest ways to start your own gambling business.

The next type of software is gaming, that is, this is gaming content that will fill your casino. There are a large number of developers of gambling games for online casinos on the market, but experts recommend choosing high-quality games from leading developers to start an online gambling site. This will ensure players’ interest in your site and will simultaneously become a tool for attracting and retaining them. According to statistics, the highest demand is for slots and live casino games.

The third type of software is payment software, which includes a set of payment instruments and systems that ensure security, efficiency and reliability of depositing and withdrawing funds. An important point is the platform’s compatibility with any existing gaming and payment software. At the moment, there is the option of a fiat online casino, a crypto-casino and a hybrid casino, where transactions in fiat and cryptocurrency can be carried out simultaneously.

The attractiveness and popularity of online casinos largely depend on quality software. We recommend that you familiarise yourself with the offers of foreign providers, study reviews from real users and collect as much information as possible about the proposed software.

Pay attention to the catalogues of leading developers of virtual gambling games, study their popularity and find out how long it will take to deliver the selected software to your resource, as well as the possibility of cooperation on an individual program.

Pay special attention to the issue of the possibility of providing technical support from the provider throughout the entire period of validity of the cooperation agreement.

The choice of games for online casinos also starts with the license. Different jurisdictions have different types of licenses. For example, some jurisdictions, like Curacao, offer a single license for all types of games. Other jurisdictions, such as Gibraltar, provide a separate license for each type of game.

An excellent solution for an operator is a game aggregator – a gateway that allows you to integrate game content from several suppliers at once, without wasting time on lengthy negotiations with each supplier separately, agreeing on the terms of the deal and technical integration. The aggregator is a tool used by the most modern game developers, so with just one API integration the operator will receive games with top mechanics, innovative design and gamification.

Before you start an online casino business and sign contracts with an aggregator or individual providers, answer the following questions:

1. What kind of online casino do you want to create: classic games, gamified games, slots in the style of trendy cartoons, TV series, comics, books, films, and so on?

2. Are you going to add live casino games to your lobby?

3. Are you interested in e-sports or fantasy sports?

4. Will your online casino work with cryptocurrency to add games built on smart contracts and blockchain to its range?

5. Are you going to add live player statistics, tournaments and real-time chat for players to communicate to increase their loyalty to your product?

Casino games are divided into many categories, the most popular of which are:

– slots;

– table games (baccarat, blackjack, roulette);

– games with a live dealer (baccarat, blackjack, poker, roulette);

– video poker;

– bingo;

– keno;

– scratch cards;

– lotteries;

– plinko, etc.

An important characteristic of a high-quality gaming platform is a demo mode with which the client can play without making a minimum deposit. Free demo game allows players to try the game without risking real money, get to know the game mechanics and apply a working strategy to win.

Online casinos in legal jurisdictions operate thanks to teams that build their reputation. To ensure that the reputation of the casino is clean and the quality of the products and services offered is high, casino operators hire professionals. As already written above, there are mandatory types of specialists in order for an online casino to develop.

To avoid hiring too many employees and overstaffing, companies prefer to outsource some tasks. The efficiency of such companies increases since they do not need to spend money on regular salary payments, withstand a large functional load, and also deliberately spend time searching for highly specialized specialists with a good reputation.

It is worth paying the closest attention to this stage since it is on its implementation that it will depend on whether the money invested in obtaining a license and developing the site was not in vain. The effectiveness of the advertising strategy and the work of marketers will determine how quickly the casino will attract customers and begin to generate the expected income. Mandatory online marketing tools are SMM and SEO optimization, email campaigns, and loyalty programs. Here are the options for step-by-step promotion of a new online casino:

– launch of advertising in media;

– promotion in search engines and social networks;

– constant news updates on the site;

– contextual advertising;

– use of CRM systems;

– affiliate marketing;

– SEO promotion;

– word of mouth.

Let’s talk in more detail about some promotion options.

SEO Promotion

Includes internal optimization (working with the site), external optimization (purchasing and placing links on thematic projects), and maintaining results. The golden rule of SEO for online casinos is to write for the reader, not for the search engines. You can’t fool the search engine’s algorithm, and even if you find a way, your hard work will be undone by the time the next update comes out. Search engines quickly ‘learn’ and become smarter.

CRM System

The main advantage of the system is to take into account all information about customer interactions with the company’s services. The system is a program that allows you to establish connections with real and potential clients, communicate with them, make profitable offers, and increase the involvement of the target audience.

E-mail Marketing

The two biggest advantages of email newsletters are price and ease of setup, compared to other types of internet marketing. To use this method of promotion, you need to collect a client base. This can be done using a CRM system, pop-ups, landing pages and contextual advertising. Since users are not always willing to share contacts, they are incentivized with promotions (for example, receiving bonus coins and chips).

Affiliate Marketing

One of the most convenient and cost-effective ways to attract the target audience. Essentially, you can talk about your business on third-party sites with high authority. In this case, each party in affiliate marketing receives a percentage.

Promotion on social networks

SMM is an effective channel for promoting online casinos. Social networks have a target audience of millions. Using targeting, you can organize the display of advertisements to a specific audience according to pre-defined parameters. Also, an SMM professional knows how by collaborating with authoritative bloggers you can gain the trust of your audience. The main goal at this stage is to position your company in the market as reliable, to establish itself well and to make the brand as recognizable as possible.

Loyalty Programs

Promotion of casino sites in this way involves stimulating the audience by providing rewards and benefits for their loyalty. A well-thought-out loyalty program allows you to: establish long-term relationships with the client; encourage repeat visits; and achieve income growth.

By tracking your audience’s behaviour and preferences, you can offer personalized incentives that are more likely to attract customers and motivate them to come back again and again. This could be free play, VIP access, exclusive events, etc.

Branding

A memorable image helps you stand out among many other brands, win consumer loyalty and create a positive image. Branding helps build long-term relationships with the target audience and increase competitiveness. A brand’s identity, values and principles, as well as thoughtful communication methods, help create a strong emotional connection with customers.

Allyant group specialists will provide you with qualified assistance in obtaining a Curacao license, forming a company in Cyprus or Curacao, and will also provide other corporate services. Such services include, for example, the service of preparing an up-to-date package of documents for regulators. This is necessary to maintain a high reputation for the online casino business before financial and tax authorities. Also, Allyant Group professionals provide all the required compliance procedures that are required by the regulatory authorities of Curacao.

Another type of corporate service is consultation on choosing the ideal solution for your betting business and casino. The Allyant group team has a wealth of knowledge in the online gambling industry and can explain how to start an online casino. In addition, clients can expect transaction monitoring procedures to identify any disputed issues and resolve them efficiently and quickly.

Thanks to the professionalism of the Allyant group, clients receive the opportunity to receive advice from experienced business partners, whom the client can turn to on related issues (for example, recommending a software supplier).

What is an online casino?

A virtual casino is a web page or application that allows users to play for money using a computer, smartphone or tablet. The gameplay and atmosphere of such casinos are most closely approximated to a real casino.

There are currently three types of online casinos: fiat casinos, crypto casinos and hybrid online casinos, where gamblers can deposit funds into their account in fiat and cryptocurrency.

What is a gaming licence for a casino?

A gaming licence is a document that allows you to run an online casino, bingo, all kinds of lotteries, options and an online sportsbook. The licence is provided by international jurisdictions and the owner of an online casino can choose the jurisdiction required for their business and the appropriate licence conditions.

The independent process of obtaining a licence can be quite labour-intensive, therefore, in order to quickly and easily resolve all issues that arise, it is better to use the services of experienced Allyant group specialists to provide legal advice and simplify the process of obtaining a licence.

How to grow your gaming business?

Each business owner will have their own personal intuitive strategy, but there are also general recommendations. Keeping gamblers active will help generate business benefits. We are talking about live chat for players, tournaments, and a selection of games in the lobby with gamification technology, which allows players to add their own preferences to the gameplay.

Use a multi-variant marketing strategy, namely cooperation with influencers and streamers. Keep abreast of relevant regulatory changes or outsource this responsibility to professionals.

How does an online casino work?

Once licensed, the online casino contracts with a gaming platform software developer to offer players a wide selection of casino games. In addition, contracts are concluded with game providers or a unified API integration of games occurs through a game aggregator. Additionally, online casinos partner with payment providers to process payments securely and reliably.

Is it legal to start an online casino?

Yes, it is legal to start an online casino if you obtain a gaming licence from a competent jurisdiction. The licence gives the right to offer gambling in compliance with all rules and regulations, as well as the right of control by regulators. Legalisation helps fight illegal gambling and guarantees the honesty and transparency of the company.