The online gambling industry is one of the fastest-growing markets, with a projection to reach over $400 billion by the end of 2025. Hence, many people are looking to start their own online gaming business. However, entering the industry requires taking diligent steps to ensure future prosperity.
If you want to learn how to start an online gambling business adequately, read our 7-step guide.
Step-by-Step Guide to Starting an iGaming Business
From adhering to legal frameworks to finding the right software, here’s everything you need to launch a successful online gambling business.
Step 1: Select the Business Model
The first step is figuring out what you want to open. When talking about the iGaming world, there are plenty of options. The current most common business models are:
- Online casino
- Online sportsbook
- Hybrid
Some operators are just bingo-oriented or simply poker platforms. However, many tend to use the hybrid model as it allows them broader market coverage.
Another thing to consider is whether you want a white-label or custom-built platform. A white-label platform means getting an already-made, licensed site that you can adapt to your brand. On the other hand, with a custom-built platform, you get to do everything from scratch and create something unique for your online gambling business.
Step 2: Research the Market
Once you know what your online gambling business is about, you can start delving into the specific market. Checking which trends are most popular in the area will give you leverage over other brands. For instance, mobile gaming is a must for a successful business. AI and blockchain are also part of most casinos and sportsbooks that want to keep their hats in the game.
Researching the market also means identifying your target audience and the games they like the most. Create a list with all the needed measures to gain insights into the market. Things you can include are:
- Player demographics
- Local GPD
- Favored payment methods
- Mobile gaming rates
- Favored sports/games
- Best gaming providers
One more thing you should note when doing a market analysis is to check your competitors. As a billion-dollar industry, the competitive field is vast, so knowing what to expect lowers the chances of failure.
Step 3: Check Legal Requirements
You can’t start an online gambling business if you don’t comply with the legal regulations. One important thing is to have a licensed platform.
But choosing a jurisdiction won’t cut it. You also need to obtain a gaming license and comply with other laws, such as anti-money laundering, responsible gambling policies, data protection, and so on. It’s crucial for an online casino or sportsbook to also adhere to the specific state or country laws where it plans to do most of its business since some places don’t allow offshore operators or have more regulations.
Step 4: Create a Website
We already mentioned that when creating an online gambling business, you can choose a white-label platform or a custom-built one. Regardless of which option you think is better for you, there are a few things to consider.
Hosting
A white-label platform (in most cases) will provide hosting. But if you’re doing it alone, remember that the more your business grows, the more traffic it will have. Hence, having a good hosting service is key to accommodating a scaling number of visitors.
Look for security measures, uptime, and scalability to ensure you’re using a good hosting service. A 24/7 customer service can also come in handy.
Domain Name
Note that a domain name should represent your brand. Choosing an easy-to-spell and brand-specific name will help players remember your online gaming business and find it easily in the sea of many.
Some web hosting companies also give a domain name. But, when choosing, remember to check the trademarking laws, as well as existing trademarks. This way, you ensure there is no infringing on any intellectual property (IP) rights.
User- and Mobile-Friendly Site
Having a mobile-friendly site is a deal breaker for some players. Others believe that an app can streamline their gameplay. In all cases, always ensure that your business prioritizes the customer, i.e., is user-friendly. That means players can easily navigate through the website and find the main features in the main menu.
Step 5: Integrate a Gaming Software
Every step will be in vain if you don’t have the right software to back your online gaming business. Depending on your business model, you can choose various providers. Some operators tend to stick to only one or a few, while others diversify their portfolio.
In any case, make sure that the casino software:
- Is secure
- Offers a variety of games
- Has a demo option on its titles
- Backs responsible gaming
- Has strong back-end management tools
Some of the best game developers right now are Pragmatic Play, Evolution, and Play’n GO. Of course, there is always the option to create in-house games and give players something they can’t see in another gambling business.
Step 6: Add Payment Methods
You can’t have an online gambling business without adding payment methods. With the growth of blockchain technology, most operators today offer crypto as part of their banking options. Whether you choose to include it or not, there are a few other things to keep in mind:
- Your business should offer different payment methods—everything from credit/debit cards to e-wallets and bank transfers. The more options you have, the more players will join.
- Always ensure your payment methods are backed with SSL encryption, fraud detection tools, and secure authentication. Conducting a thorough KYC check can help deter malicious activities.
- Don’t just look at the deposits – withdrawals are what players are more interested in. Your cash-out payment methods should be the same as the deposit options, and they should be speedy and fair.
Step 7: Market Your Business
The last step is to spread the word. Without marketing, your online gambling business won’t attract that many players. It’s important to create a social media presence for your business and share news and offers directly to your customers.
SEO can also make a difference and boost your site’s visibility. The good thing about marketing today is that you can hire professionals to take care while you focus on your casino or sportsbook.
Conclusion
Starting an online gambling business may seem easy, but there are a lot of things you have to cover. Everything needs to be by the law, your games should come from reputable and safe providers, and payments should be secure and fast. Businesses with responsible gambling and good customer support are also a fan-favorite.
No matter what business model you choose, following these steps is a surefire way to build a long-lasting company in the iGaming world. Tailor them to your needs and create a profitable and legal business.