Genome Blog / articles / How to start an online casino in 10 steps: a comprehensive guide for 2024
Apr. 30, 2024
Online casinos are profitable businesses with annual growth rates higher than those of some countries. The revenue of the online casino market will only flourish. In just five years, the projected market volume will increase from $36,64 billion to $46,93 billion.
If you are considering starting your own online casino business, our team at Genome has some essential tips, which we have broken down into a 10-step blog post.
1. Understand the online casino market
So, you might be wondering, “How to start an online casino in this current year?”. Market research and identifying your target audience are half the solution to establishing an iGaming company.
Take a look at your potential competitors before looking forward. As a new business, you have a chance to consider others’ mistakes and success stories.
Study the trends and innovations in the online gaming industry. Today, mobile apps are a must for companies who want to attract new clients. There is no better strategy than to be available at any time. After all, an online casino should be truly online.
A more user-friendly website and mobile app, faster payments, and an overall focus on relevant things for clients are what allow the creation of a successful online casino business. The online casino industry is booming, and your client-first approach will be crucial for retaining clientele.
Before starting an online casino platform, it is crucial to determine your target audience. An online casino can reach many clients worldwide. Thus, it is important to prioritize specific countries and audiences and not spend too much money on marketing your casino business to the wrong clientele.
2. Legal requirements and licensing for online casinos
Starting an online casino can be challenging in terms of legal regulations – not all countries allow such businesses within their jurisdictions.
Opening an online casino in Europe
In the past, European countries either had no regulations specifically for online casino games or only state monopolies that were allowed to offer online gambling in those countries.
However, today, the majority of countries have adopted multi-license regimes that allow both private and publicly owned companies to obtain a license to offer iGaming in a country.
Each country establishes its own rules and taxation but must respect the European Union law. This mechanism ensures a level of consistency and standardization across the continent in keeping responsible gaming policy.
You must provide the required documents and pay for a license to get your online casino business running. The price will vary from country to country in the EU.
Opening an online casino in the US
In the USA, the situation with a gambling license is complex. The country has the Unlawful Internet Gambling Enforcement Act that regulates online casinos on the federal level.
The law does not make iGaming itself illegal but creates impeding restrictions on the financial transactions associated with it.
So, the legal status of online casinos and gaming depends on the state. For example, only in the past few years, several states have legalized online sports betting. A handful of states also allow online casinos to operate legally.
Online gambling is somewhat controversial in the US, as the country has a long history of opposition to gambling based on moral grounds. Currently, some forms of iGaming are legalized in Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia.
Opening an online casino in Asia
Very few Asian countries permit iGaming activities. Among the notable examples are Japan, The Philippines, Cambodia, and South Korea.
At the same time, in some countries, like China or Indonesia, iGaming is strictly prohibited. China’s government even emphasized the need to strengthen the crackdown on online gambling and cross-border gambling activity.
This, again, shows how important it is to closely follow the regulations and updates on the online casino industry of the country you plan to obtain the license from.
The process of obtaining the license
All in all, it is difficult to pinpoint how the process of getting a gambling license will go for each region. However, here are some commonalities you can expect when obtaining a gaming license.
- In pursuit of gambling licenses, casino operators must prove their financial stability and that they have enough funds to cover operational expenses.
- Your casino operations must comply with set technical standards for the gaming platform.
- The online gambling business will definitely need to enforce the anti-money laundering measures.
- Before obtaining a gaming license, online casino platforms must ensure that they follow the policies and player protection measures set by the country.
- The online casino owners, their stakeholders, and staff will undergo background checks.
- The advertising and marketing efforts of such companies will also be monitored.
- Last but not least, the gaming business will need to pay licensing fees and taxes imposed by regulatory authorities.
- The online gambling site or application will undergo audits before licensing and will face more inspections in the future.
3. Choose your casino software provider
Casino software is an amalgamation of tools and features that power online casinos, managing everything from game offerings to payment processing. It allows the gaming platforms to provide a seamless gaming experience, manage operations efficiently, and ensure compliance with regulatory standards. Finding the right casino software provider can really make or break an online casino. Here are a few tips on how to choose the right software provider.
How to evaluate casino software providers
When starting an online casino, you need game providers for your website or app on mobile devices. To select the most suitable software provider, you need to consider the following criteria:
- Game variety. Ensure that the company has a roster of games and entertainment services that align with your vision and marketing strategy and cater to the target market.
- Request a demo of their services. This will help to evaluate how well their games perform and if they can be scaled/catered to your website’s needs.
- Pay attention to details during the demo. You need to assess if the games offered are diverse enough, if their user interface is user-friendly, and what languages they support.
- Another important point is regulatory compliance. Software providers that deal with iGaming services must adhere to regulations as well.
- Software providers should also have 24/7 technical support. You don’t want your services to suffer any long-term disruptions.
- Lastly, when choosing between software providers, consider the overall cost of their services and ongoing fees and analyze if the costs correlate to your spending strategy.
Impact on user experience
An efficient software provider can reduce load times, ensuring quick access to games and minimizing player frustration. You want to go with reputable software providers, as they can ensure testing and certification processes to ensure game fairness and retain a pool of returning players. Experienced software providers are more likely to use high-quality graphics and animations to enhance your clients’ engagement.
4. Design your online casino website
This part is crucial for casino owners, as your online casino website should be unique, eye-catching, and user-friendly at the same time. To design a website, you can hire an experienced designer team. As they will be already aware of the best practices used in UX/UI to enhance user engagement.
Overall, your priorities for the design should be:
- Accessibility of gaming services and seamless user experience;
- High-quality performance and the ability to handle large numbers of traffic;
- It needs to be optimized for mobile phone users (better yet, have a separate app for it).
5. Integrate secure and efficient payment solutions
To accept payments from clients, you need to consider different options among iGaming payment gateways.
Offer diverse payment options
To be successful, casinos need to have a wide variety of payment methods, as they need to accommodate clients from many countries. Thus, you need to offer both traditional payment methods, such as credit and debit cards, and alternatives – bank transfers, e-wallets, and cryptocurrencies.
However, note that not all major e-payment systems work with high-risk companies. That’s why you specifically need to look for iGaming payment solutions that will be able to accommodate the requirements of your online business.
Enhance transaction security
Security features are one of the key parts of payment providers. They need to have tools and features in place to detect and prevent fraudulent transactions and minimize chargebacks. Such instruments use machine learning algorithms to analyze user behavior patterns and flag any suspicious activities.
It is also preferable that a payment solution offer a 3D Secure solution to verify clients’ payments.
Streamline deposits and withdrawals
Payment service providers that work with gambling companies build their infrastructure in a way that ensures fast and seamless payments. They are capable of processing large numbers of transfers at the same time, which is pivotal to any online or physical casino.
Additionally, payment solutions for gambling allow payouts to casino clients.
How to choose the right payment provider
To sum up all the key points, there are several factors to consider when selecting a payment provider:
- The availability of multiple diverse payment options required for most casinos;
- Compliance with major regulations and responsible gambling measures to prevent risks;
- Batch transfer features that enable multiple transfers at once;
- Jurisdictions and regions that the provider works with and that align with your business plan;
- Pricing for services and monthly fees.
If you are looking for a reliable payment provider that works with iGaming companies, we recommend Genome. We are an electronic money institution licensed and supervised by the Bank of Lithuania.
Open a business account online and access Genome’s financial services, such as batch transfers, multi-currency accounts, virtual and physical corporate cards, and more!
6. Game selection and content
It is yet another chance for your iGaming business to show its uniqueness and set yourself up for long-term success. Thus, if you wonder how to start an online casino, your game selection must be one of your top priorities. It should be diverse but, at the same time, cater to your target demographics.
Including a variety of game types such as slots, table games like blackjack and roulette, live dealer games, and specialty games can attract different segments of your target audience and enhance overall player engagement.
7. Online casino marketing and promotion strategies
You need to use all the main techniques of attractive promotion to differentiate yourself from other online casinos. For instance, it will be beneficial for a starting iGaming business to offer clients discounts, bonuses, loyalty programs, freebies, or other benefits to make its services more appealing and compelling.
Of course, your marketing strategy needs to revolve around your target market. Thus, before planning any advertising campaigns, you need to conduct thorough research on countries and people you want to promote your services to.
8. Customer support and service
Handling all the operations when starting an online casino is a challenging process. You simply cannot avoid service disruptions that can result in unsatisfied customers and poor gaming reviews.
This is why you need to have a big support team that will communicate with multiple customers at all times. Train your support team to be efficient, as well as calm and collected, as some gambling clients can be quite short-tempered.
An in-house support team is also great for collecting customer feedback, which will help you improve your services and is important for retaining customers.
9. Maintaining compliance and security of your online casino
Not only do you need to comply with relevant regulations during the licensing process, but you have to remain adherent to them at all times.
To stay on top of gaming-related regulations and legislation, invest in a compliance team. It will ensure that your business doesn’t break any laws, as it can lead to devastating financial and reputation losses.
Moreover, we highly advise using advanced risk management tools to handle the threats associated with fraudulent activities.
10. Scaling your online casino business
Even after starting an online casino, getting your license, and setting up all the essential services, you cannot be successful with a proper scaling strategy.
Key strategies may include diversifying your game portfolio to attract a wider audience and expanding into new markets where online gambling is legal. Also, consider enhancing your marketing and promotional efforts to increase visibility and attract more clients.
Moreover, you shouldn’t settle: conducting research and investing in technology should be among your business objectives. The online casino industry is very competitive, and keeping up with innovations and new approaches will be fundamental for your success in the long run.
How to start an online casino: key takeaways
Starting an online casino requires thorough planning and execution. You need to get a license and maintain legal compliance. You will also require a reliable software provider and payment processor to have your website running smoothly and accepting payments from clients. It is a challenging process, but the industry offers lucrative opportunities for companies willing to face them and constantly innovate.
FAQs About Online Gambling
Can I start an online casino with a limited budget?
If you start an online casino, having a limited budget can be insufficient. After all, you will need to spend money on getting the gaming license, purchasing the necessary software and security tools to reach compliance, etc. If your budget is low, you need to focus on specific markets with lower regulatory barriers and look for a turnkey solution that offers packaged deals on software and other services.
How long does it take to start an online casino?
If you wonder how to start an online casino, you should know that it can take longer than other businesses, as it requires careful planning and execution. First of all, you will spend time researching the best jurisdictions for your online casino business and compiling a business plan. You will need to come up with an effective marketing strategy, as the online gambling market is somewhat oversaturated. And, of course, you will have to deal with obtaining your gambling license and implementing a responsible gaming policy. In general, it can take you from 6 months to 1-2 years to finish the process.
What is the most important factor in ensuring the success of an online casino?
Our team has mentioned this before, but to us, the most crucial part of your business should be the client-oriented approach. You need to ensure that your clients enjoy their experience and are well protected from fraud and scams on your online platform or application.
Are there specific marketing strategies that work best for online casinos?
To be successful, your business needs to utilize targeted digital advertising campaigns and affiliate marketing programs. It would also be beneficial to partner with other companies and influencers for cross-promotion, as well as visit targeted iGaming conferences.
You can also have a separate blog powered by search engine optimization, where you will promote your services and educate clients on iGaming.
