Starting your own online casino: here's how to do it
With the new Remote Gaming Act licensing online casinos, you may be toying with the thought of starting an online casino of your own. Not a bad idea, these casinos are doing well. However, in the Netherlands you must have a substantial start-up capital and meet a series of conditions. But once these steps are done, the cost of running the online casino is very limited.
The number of players on online gaming reached 1.8 million at the end of 2018, up 20% from the previous two years. It motivated the government to work on the new Remote Gambling Act because since casinos are not legalized, the treasury is losing up to 100 million euros annually. Moreover, most Dutch people prefer to gamble at an official provider with a Dutch license.
Prospecting at the best online casinos
Anyone starting their own business first explores the market. How is the competition doing and where can I add value? There are so many online casinos that you first need to find out with whom to compare your casino. Lists of best online casinos are easily found on the Internet. Read the reviews, you can learn a lot from them, and see which bonuses are attractive enough to convince players to create an account with you. Of course, you create an account yourself at your future competitors and play the games.
Apply for a license
The first important step to being legally compliant is to apply for a license. Popular countries that grant reliable licenses are Great Britain, Malta and Cyprus. Make sure you obtain the license in a country with a fair legal system. It avoids unpleasant surprises and players also find this important. If you want to try to get a Dutch license, you need to have a lot of money: €45,000 to submit the license application, €830,000 guarantee and €600,000 structural charges. That comes to 1.5 million euros in costs to cover the first year.
The right software
If you have your license, then the focus is now on the gambling system. That is, you need white label casino software that makes the games run smoothly, both on PC and mobile, and that makes play fair. Most online casinos work with major software producers such as Microgaming or NetEnt but some have their own system or work with smaller producers. Having your own system developed is very expensive though.
Your business card: the website
The website is as crucial as the software. The financial success of your online casino will depend on how well and how fast your website runs. A slow website leads to less revenue. The appearance is also important to attract players. A website that looks sloppy comes across as untrustworthy. Make work of strong graphics and a professional look. To promote your website, you can go through the usual marketing channels: send out newsletters, write to reviewers, give out bonuses and interesting prizes... Keep in mind that advertising for an online casino is also regulated.
Motivated to start an online casino, then it may be interesting to invest part of the profits in franchising through existing platforms. The main company is responsible for developing the website and managing the bets. It reduces the burden and administrative work involved in starting an online casino.