9 min read
How to start an online gambling business
The industry of online gaming is developing every year and will be prospering for a long time. At the moment it costs nearly $72 billiards and will increase by 11% per year. Mainly it depends on mobile games of chance, availability to more economical and fast Internet, new technologies and types of igaming such as crypto games, cybersport and fantasy sports betting.
Collectively those elements bring a new group of players to the market and enlarge the operators’ chances to make a profit. This profit has been stable for the last years despite all world and national economic fluctuations. This sounds good for investors, who, probably, are thinking about creating their own website.
Let’s start with popular cybersport. Whether it's your passion for gaming or your desire to embark on an entrepreneurial adventure in a promising market, this project has every chance of success if you are single-minded, organized, and follow a solid methodology.
Now you will learn how to create a game bar. We will study the market in detail, assess human and material needs, and implement a business plan. With our explanations and tips, you will be able to calmly approach these great moments of creating your esports dashboard.
Before opening a game panel for esports, it is necessary to conduct research on the gaming and cyber sports' sector market and panel concepts associated with that industry.
This step will allow you to lay the foundations for your project and explore its feasibility. In fact, gambling market research serves a dual purpose: to check if there is indeed a business opportunity in the area of the proposed establishment, and also to allow you to familiarize yourself with the regulatory restrictions that will govern the operation of the establishment and your activity.
In addition, market research will allow you to deepen your knowledge of the main trends in the industry. By learning about consumer expectations and the level of competition, by examining the offers and pricing policies of your competitors, you will also learn what kind of return and profitability to expect from your future business.
Cybersports, or e-sports, refers both to the practice of multiplayer games, especially online and to all competitions associated with this practice. The three main criteria for esports practice are a match, players, and e-support. In Europe, the practice of esports is becoming more and more common, but from an organizational point of view, it is only in its start.
This segment of video games is actively developing. Online gaming studies show that the video game market in Europe, and France, for example, grew by 18% in 2017 and recorded a record turnover. 4.3 billion euros in particular, new trends in virtual reality and esports (French Association of Video Games).
And esports, which now wants to get closer to the Olympics, is attracting big names in traditional sports (Business Insider)! This enthusiasm is also reflected in the online esports audience, which is estimated at over 260 million. So far, while the main audience is on YouTube and the Twitch platform, TV channels are showing more interest and are starting to broadcast esports.
The information presented here applies only to the leisure esports installation. You should develop this topic in your market research, as well as look at the main trends in esports, study its audience, players and the ecosystem as a whole.
You should also pay special attention to the organization of the esports sector in order to know the vitality of the sector (growing or not, in what proportions), the reasons for this situation, the main trends in the sector.
Finally, you will also need to draw up a detailed map of the players involved to get inspired by the best practices they have implemented, avoid their mistakes, and create original positioning that allows you to stand out.
Here are some tips suitable both for online casinos, betting shops and esports.
- Choose a perfect software supplier
Any way you could make your website of games of chance with your own platform with games, but it would be difficult and expensive. A lot of businesses prefer to pick solutions from suppliers of online gaming platforms. They propose a fully equipped framework, which includes casinos, betting shops and other functions. This really helps to reduce spendings on installation and provides the most economical work method for the future. Also, scalability is important here and gives your platform a possibility to develop.
Creating a platform is the most significant solution because you start a partnership for a long period with your software supplier for gambling. Take your time to estimate current ways from the perspective of quality and suggested services and markets.
it's obvious, you want to find a supplier who has a profound knowledge of the gambling sector and experienced an opening of the online casino with success. Look for flexible and fully customizable solutions, where you can control all processes from creating to running. The best choice is white-label that gives you a possibility to lease your software, gaming licence and payment processing system, to manage your own casino within a ‘turn-key’.
Depending on your requirements, you have to attempt to find a software supplier, which proposes you these functions of white-label:
- The advanced system of the game managing
- Payment options with multi-currency support
- Large enrolment of betting companies
- Access to a wide variety of best worldwide casino games
- Customizable frontend
- The gaming licence
- The service desk
2. Make a good team
You can have a great idea and methods, but it doesn’t matter if you don’t have a good team. Surround yourself with people who believe in you and your product. You need staff that wants not only to earn a lot of money but to be into the product.
The investment in HR could be expensive, but as a result, it’ll influence the size of income that you’ll bring home. Find people, who have experience in the innovations, have worked at similar companies and promoted them. It’s not enough to hire whoever and stay still till the results and trophies will come. The important thing is experience, and a person can show those skills in the working process.
3. Find your niche
Make up your mind what do you like the most: tennis, football or casino? Probably you would like to create a site for fantasy sport or online casinos? Before installing your software or creating a site, think about what is YOUR niche. After that, you’ll know what you can propose to users and what is your target audience. It will help you to stand out in the industry, where there are a lot of different suppliers, and you can become more cost-competitive and offer more qualitative services. Generally, it increases the loyalty and stability of your clients between your opponents, so you’ll get more profit.
The best way to find your niche is to ask yourself a few questions:
- Which software platform you’ll use?
- Do you propose online casino games like baccarat, roulette, poker, bingo or arcades?
- Or it’d be sports betting? According to the recent data and statistics, bets on events and matches will be developing for a long time together with the technology's progress.
- Will you require additional functions as online chats, players’ statistics, a system of bonuses or tournament games? etc
Having a lot of various questions, you have to think about your startup for the long run and carefully choose the igaming supplier. Probably, for the first time, you’d like to use a platform only for a betting shop or a casino, but later it’s possible to integrate the extra games. In this case, an experienced provider will help you to integrate all necessary content to a convenient website’s frontend.
4. Devolve as much as you can
Outsourcing is a great idea to save money. As was mentioned, a good start is using a professional provider of the platform. Also, you should hire a corporate service supplier that will take responsibility for licence issues, compliance with regulatory requirements, opening a bank account and other documents. Therefore you pay only for services you use and need. You may think about outsourcing in HR, marketing and user experience and accountancy as well, especially in the early days of your startup.
5. Create your web design
The appearance of your site is really important. You need to choose an appealing design or to invest in drafting your external frontend, because it’s one of the most significant aspects for players when they choose a website for bettings among dozens or hundreds of others.
Follow the instructions to make sure you’re doing everything right:
Don’t overload your site with unnecessary graphics or elements that could slow down the site’s work and affect the general gaming process. The researchers say the time of loading is important for players, which can leave you if the loading of pages will take a lot of time.
- Be sure that your interface provides seamless integration with your database.
- Create a smart marketing strategy including loyalty and customer retention programs.
- If you’re not sure about creating your own frontend, we recommend you apply to a software provider asking for a predetermined pattern.
When you’ve done everything by the list above, you should concentrate on the marketing of your new online gaming business. Explore your competitors and find out their strengths and mistakes and you’ll learn how to avoid failure.
Your main goal here is to position your online casino or betting shop as a high-quality and trustworthy business. At first, it will be difficult to make because the online gaming market is competitive. The best ways are to have only high-quality games from proven suppliers for your website and to keep the minimalistic and clean design of the homepage.
6. It’s necessary to make a lot of effort to announce the launching of your new gaming business. But move on and don’t stay still on achievements. You need a lot of marketing work and your players always will come back and bring newcomers. Create the client retention and bonus campaigns and your users will be satisfied.
- Loyalty programs
There are some of the most popular loyalty programs that online operators propose:
bonuses for signing up, bonuses for a cash deposit, free bets, bonuses without deposits (betting shops propose ‘free money’ without deposit request.
- Methods of customer retention
Every professional operator should think about increasing a level of retention. There are some basic methods: frequent player points (FPP) — this kind of loyalty program is important not only as a bonus initiative for your players, but as a good retention tool as well, because players, who make bets, appreciate them for the loyalty; VIP loyalty programs — frequent programs that are addressed to VIP users, who spend a lot of cash; promotions for seasonal events — it’s important to keep an eye on the seasonal events like the World Cup and the European tournament or different holiday promotions like Christmas Day or Easter; Notifications — keeping an open communication channel with your players means that the gaming sited must have an automatic system of detecting and monitoring a player’s behaviour at the moment of making bets; help with bets for newcomers — great online betting companies not only propose players a variety of bets and a wide choice of markets but provide help to them.