The Business Side Of Online Casinos
Before we start talking about the online casino business model first letâ€™s talk about how online casinos and casinos in general work. All casino games are designed to have a house edge which is in favor of the casino. On some games this house edge is lower than 1%, while on other games itâ€™s much bigger. So according to this you might be thinking, whatâ€™s the use of playing since Iâ€™m going to lose ÂŁ99 of the ÂŁ100 I put in. But itâ€™s not the way things work. This the projected house edge over a long period of time and maybe millions of spins.
The way casino games work is in spikes. This means that some time the casino will have a good run where the player will lose money and sometimes the player will manage to break the bank. So in the short run the wins can go either way, for the casino or for the player, but in the long run the casino should come out in profit because of the games house edge. Based on the games house edge you can build your online casino business model.
Setting up an online casino
Like in any other business startup the main detail to a successful enterprise is the staring budget. When setting up an online casino you need to take into consideration the budget you have available and to properly distribute your funds into all sections of the online casino. In order to set up an online casino entrepreneurs have two options. The first is a standalone casino where you will acquire the license, the casino games, set up the website, provide payment providers, live chat support and marketing. The second is buying a white label option where a company will build the entire package for you in about 4 weeks time. What is the difference between these two options?
Many people will think that the white label option is the more expensive one since the company is doing all the work for you, but in reality this is not the case. The more expensive option is setting up everything on your own and you will lose a lot of time since youâ€™re new in the business and donâ€™t know all the procedures. This is for the startup. But in the long run the white label option is the more expensive one, since you will be paying a monthly fee from your profits to the white label company which is managing your casino.
So considering your startup budget you will need to make a choice which option to use and how to start your very own online casino.
All sectors of the online casino
All online casinos start with an operating license. Once you set up your site you will need to apply for an operating license. You can choose the cheaper ones like Curacao, Kahnawake, GibraltarÂ or Alderney or you can go with the top notch like Malta and the UK. You should also keep in mind that in order for UK players to be able to play at your casino you need to have a UK gambling license.
Once the license is sorted out you need to choose which casino games you want to offer to players. If youâ€™re after a reputable online casino with premium casino games you will have to make a deal with Net Entertainment and Microgaming. These are the leaders in the industry and you will have the biggest turnaround on their games. You can also add games from other reputable software providers like Evolution Gaming, Amatic Industries, Betsoft Gaming, Yggdrasil Gaming, NextGen Gaming, Playâ€™n Go and so on. In reality players like casino games coming from several software providers in one place, so itâ€™s always a good idea to have a big offer of casino games.
Another important part of any online casino is bonus promotions and marketing. You will need to have a bonus promotions team which will come up with interesting and attractive bonus promotions for players. After all bonus promotions are the most attractive detail at any online casino.
Last but not least is live chat support. Every reputable online casino needs to have a live chat support team on the standby 24/7. This means 3 shifts of operators working around the clock.
Is it worth it?
Yes it is. If you visit CasinoPilot you will find a big number of online casinos on their site which have been in business for years. The trick to a profitable online casino is to attract as many players as possible, offer the best service possible and manage your funds properly. You might not start making profit in the first few months, but as they say in the end the casino always wins.