How To Start Your Own Online Casino and Poker Gaming Business
Did you know that online gambling business is currently one of the fastest growing business categories in the world? The popularity of online gaming is increasing rapidly and this year has seen meaningful growth in Europe and Asia. In China and Malaysia, there are twice as many online gamers as there are Internet shoppers. Around 43% of Chinese Internet users play games online, while just 16% report that they shop online.
Revenues in online gaming business rose from only $800 million to over $2 billion in 1999! By year 2010, it is estimated that online gambling industry will top over $16 billion in revenues! London-based Merrill Lynch analyst Andrew Burnett says online gambling could generate more than $150 billion in revenues by 2015.
Until recently small entrepreneurs had no chance of getting into the gambling industry, because of huge capital investments, gaming license acquisitions and legal red tape. The internet deleted all the obstacles. You can now own and promote your own online casino, sportsbook and multiplayer poker room gaming business and generate revenues you’ve only dreamt about.
There are 3 ways to start an online gaming business:
1) Most Expensive – Design and implement all gambling software for an online casino, sportsbook and multiplayer poker room which could cost you millions of US Dollars. You will also need to acquire a gaming license to run your online gaming business, which requires approval from most governments. However, you will have complete control of your gambling site, and complete knowledge of the source code of your gambling software. In addition, no royalties are paid out to a gambling software development company.
2) Average – Become a Licensee of an Online Gambling Software Provider. This is a far less expensive option to start an online gambling business and you will receive all the gambling software and sometimes already the equipment necessary. It is also the most popular option for both licensed land-based establishments in addition as entrepreneurs. Costs range from $30,000 to $350,000. The average licensing fees are around $150,000 (this usually includes marketing costs). In most situations a royalty is paid to the gambling software provider as a percentage of the monthly “take” or “drop” (gross profit). Usually the gambling software provider has payment processing (merchant account providers) already set up for a fully turnkey operation.
3) Most Affordable – Become a Sublicensee of an existing Licensee. This is the least expensive option to start an online gambling business. Costs range from $5,000 to $60,000. The sublicensee is responsible for all the marketing and receives a smaller percentage than a complete licensee (2), because royalties paid to the licensee are much higher.
To legally function online gambling businesses, online casino and poker room owners turn to sovereign governments in countries that permit online gambling and duly issue licenses for gambling operations. The casinos and poker rooms are registered as offshore gambling operations and in turn, the respective countries gain meaningful licensing fees and tax-generated revenues.
As Internet use spreads across the globe, online gambling business will continue to be one of most profitable online business opportunities of the 21st century.