The ubiquitous penetration of high technology opens up new opportunities for business on the Internet. Anyone can create an online gambling business, regardless of their location and the amount of the initial investment. Of course, to start your own online casino or betting company, you need to have a certain level of knowledge. All the necessary information you will find in this section.
Regardless of which type of gambling you choose, to start an online project you will need to go through the following stages.
Market and target audience analysis
In spite of the fact that users from all over the world can access the gambling site, projects designed for a certain audience are more successful. You can learn about the current state of the market and the forecasts for the nearest future in the corresponding section of our website.
To get more detailed information about particular geographical, social or other segment marketing and consulting agencies will help. For example, we offer you to get acquainted with the analytics of gambling apps on AppStore and Google Play.
Before you start a startup, we recommend that you check out the great reviews of Canadian gambling sites on Best Online Casino Websites in Canada, so you’ll have a good example to draw inspiration from.
Getting a license
The gambling industry is under the watchful eye of government agencies. But not all countries have a clear and reliable regulatory mechanism. This situation is exploited by small states, such as the Isle of Man or Curacao. They promise interesting licensing conditions that sometimes allow operating in other jurisdictions.
Here is a look at the most popular gambling jurisdictions and a brief evaluation of the state regulators in these regions.
It is very difficult to do without a license. Firstly, popular payment systems will refuse to cooperate with the casino, operating without a license. Secondly, the license is a guarantee of honesty and transparency of the institution, which players pay attention to in the first place. However, there is a way to bypass the need for a license – for example, you can open an online casino White Label.
How to open an online casino in Canada?
The license is received. What to do next? Before you create a casino online in a certain direction, you need to take care of funds for the purchase of software. Software for the casino is the largest part of the investment in your own business. On their basis and is based on the work of an online gambling house
There are several manufacturers on the software market – both world-renowned and more modest. If you order the program from the developers belonging to the premium-class segment, you can open an online casino, investing not less than one million dollars.
Ordering programs from brands more modestly will cost several hundred thousand dollars. Very low-budget no-knowledge software payback casinos can not bring – despite the fact that their value is also thousands of dollars.
Official software developers advise how to open an online casino as safely as possible. For a 20% royalty they will protect the site or application from hacking, from the overload due to the huge number of visitors. And do not let the word “royalty” scare you – practice shows that the elimination of such problems by their own forces is much more expensive.
Buying a domain name
These days, though, users very rarely type in a website address by hand. But the domain name is an important part of branding, so the future of the project depends on the right choice of site address.
Renting or buying a hosting server
Online casinos, like any other major project, are very demanding to the quality of hosting. It is necessary to ensure high bandwidth, security from hacker attacks and reliable operation of the resource.
Some gambling platform providers offer clients not only the software, but also their own site to host the site.
Develop a branded interface design
High competition in the market of online gambling requires a serious approach to the visual design of sites and user-friendly interface.
Of course, there is a category of players who are interested only in the financial component – they count bonuses, promotions and their own winnings, not paying attention to everything else. But if you want to attract customers not only with generous monetary rewards, you should think about the original design.
Modern targeting technology allows you to automatically determine many parameters of each visitor and direct him to the appropriate page. This makes it possible, within one project, to use several design options, interface languages and other site elements at once.
Organization of an online casino
Unlike most other Internet projects, the gambling site has higher requirements. Therefore, the use of popular “engines” here will not help – almost all online casinos are developed as individual projects.
Platform providers offer ready-made solutions. Buying a platform, you get a ready-made system on which you can deploy a casino, a bookmaker’s office or a bingo club.
Platform Integration
The platform is the foundation that unites the products of different studios (games, betting lines), payment systems, internal services and security systems into one. Therefore, the choice of platform is a key decision when creating a gambling project.
Using several platforms from different providers at the same time is an extremely technically complicated and expensive solution. In most cases it is easier to launch a new site than to change suppliers or add another one. Therefore, the “marriage” between the operator of a gambling project and the platform provider is concluded for many years.
Game integration from popular providers
Modern online gambling is a complex and expensive software product. Not only programmers, but also mathematicians, psychologists, designers and artists are working on their creation. Most popular platforms allow you to integrate games from several studios.
Offshore for Canadian Casino Online
New technologies have made it possible to expand entertainment opportunities and created new business areas, such as online casinos, online games, sweepstakes and other gambling and entertainment. As for any business activity gambling business needs proper protection and favorable conditions of tax burden optimization. Offshore for internet casinos is a very attractive option, as onshore jurisdictions have very strict legislations concerning this business activity.
The most prominent jurisdictions that are willing to establish an offshore for an online casino offer jurisdictions and territories, among them: Costa Rica, Malta, Gibraltar, Nevis, UK, Curacao, Cyprus, Isle of Man, Seychelles, Alderney and so on. Besides offshore, there are plenty of other jurisdictions willing to issue a license for Internet gambling, among them: France, Australia, Czech Republic, Kanawake, New Zealand, BVI, Cagayan Economic Zone and Free Port, Denmark, Kazakhstan, Antigua and Barbuda, Western Cape, New York, Germany, Belize, Northern Territories, Vanuatu, Montenegro, USA, Guernsey, Spain, Greece, Panama, Swaziland, Bosnia and New South Wales, Estonia, Lithuania, Aland Islands, Mauritius, Austria, Schleswig-Holstein, Uruguay, Marshall Islands, Ireland, Japan, Anguilla, Romania, Bulgaria, Hungary, Latvia, Netherlands, Poland, Portugal, Slovenia, Sweden, Turkey, Belgium, Slovakia, Victoria, Philippines.
The most popular of the above jurisdictions for offshore registration for online casinos are: Costa Rica, Malta, Gibraltar, Nevis, Alderney (UK), Guernsey (UK), Curacao, UK, Macau (China), Kanawake (Canada).
Obtaining a license for online casinos in Europe requires a significant financial investment, as well as an annual audit and other requirements. While getting a gambling license in Asia is a bit more affordable.
The same applies to gambling licenses in Caribbean jurisdictions. It is much easier to get an online casino license in the Caribbean. For example, the cost of a license in Curacao will cost you about C$10,000. In addition, the Caribbean countries offer low taxation, not more than a few percent.
Offshore in Seychelles
Seychelles offers the possibility of obtaining a gambling license by obtaining a Special Company License (CSL: Company with Special License). These companies conduct any activity which is approved by the Ministry of Finance, including gambling. Companies are not anonymous and pay tax at a rate of 1.5%.
For Seychelles companies and licenses must be audited, but as a rule, these checks are very simple.
Offshore in Cagayan de toro
In the north of the Philippines there is the Cagayan Special Economic Zone, which is a partially autonomous region where gambling is a legal activity, and licenses are granted for Internet casinos. In fact, it is against Philippine law, but in reality nothing is done about it.
There are casinos that have been licensed here, and the process of obtaining this license was quite easy and at affordable prices.
Offshore in Nevis
Under the Betting and Gaming Administration Act of 1999, the Federation of St. Kitts and Nevis provides the opportunity to obtain a license for gambling. Local residents of the island are not allowed to play at online casinos.
In order to obtain an online casino license in St. Kitts and Nevis, you must establish a company in the jurisdiction, apply for a license, and meet all necessary requirements.
According to government regulations, a company cannot have the word “Casino” in its name. The state fee to obtain a license is $80,000, and the annual renewal is $40,000. A written statement that no Federation citizens will be allowed to wager or perform other gaming activities is required. A work permit is required for all non-citizens.
Notification of changes in directors or beneficial owners of the company must be submitted to the appropriate government agency. Ads posted on the Internet must be verified by government agencies. Company must have a bank account with a bank in St. Kitts and Nevis.
Offshore in Gibraltar
Gibraltar is a self-governing jurisdiction, which is dependent on the British Crown. The country is a full member of the EU, and is completely independent of British legislation. Gibraltar is well known as a center of online gambling, as in 2013, 25 companies in the field of online casinos and games were established in the tiny country, which were able to employ about 2 thousand workers.
Many gambling participants consider Gibraltar one of the best places to establish a company and get the necessary license.
Gibraltar began issuing licenses for online casinos back in 1998. State authorities offer the possibility of obtaining a license: betting license, license for intermediaries to place bets, gambling operators license, license for slot machines, lotteries, for promoters and online games.
Licenses are only issued to operators with a proven track record, who are already licensed in reputable jurisdictions and have a good financial standing and a realistic business plan. Software testing is part of the process.
The tax on income from online gambling activities is 1%. Currency exchange for betting is also taxed at the same rates as other transactions. For online casinos, the gaming tax is 1% of gross profit. There is no VAT tax in Gibraltar.
In June 2014, the Gibraltar Gambling and Betting Association (GBGA), which represents operators based in Gibraltar, ran into difficulties because of potential amendments to the Gambling Act, which could require the UK Gambling Commission to apply for a license. GBGA’s argument was that since Gibraltar operators are already licensed in Gibraltar, they do not need a license in the UK and should not be subject to the 15% UK consumer tax. The resolution of the GBGA’s legal challenge has not yet been determined.
Offshore in Costa Rica
Many people choose Costa Rica because of the ease and speed of registering an offshore company, and further obtaining the necessary license. Offshore Costa Rica is located in Central America, between Panama and Nicaragua. The main advantage of this jurisdiction is the principle of territorial taxation, the same as in Hong Kong. In fact, if your company in Costa Rica conducts business activities and manages abroad, it is tax exempt. However, income earned inside Costa Rica is taxed up to 25%, but if you are officially employed here, taxes will not rise above 15%.
In order to open an offshore internet casino in Costa Rica, you need to initially block all IP addresses from Costa Rica, get a data processing license as well as special company statutes. For legal reasons, we recommend that you install physical servers in Costa Rica. Also among the Costa Rican requirements for obtaining and maintaining a license is the need for a physical presence in Costa Rica in the form of an office or employee. We provide this service.
It takes 1-2 months to register offshore for an online casino in Costa Rica and another 6 months to obtain a license. You can speed up the process by purchasing a ready-made offshore site through us. We can also help with the selection of an offshore account to start your online casino.
Costs for registration of a company with a gambling license in Costa Rica.
Offshore in Malta
Another option is to open a company and obtain a license for online casinos in Malta. Malta is a member of the EU, which gives the country political and financial stability, and accordingly the prestige of all companies established in Malta, including offshore for online casinos.
In Malta, you will be able to establish not just an offshore but a European company with attractive taxes. In addition, you will be able to open an account in a Maltese bank with no restrictions on your business. A Maltese company will lend prestige to your business as well as provide you with the possibility of obtaining a residence permit in Malta.
The taxation system for online casinos in Malta is the same as for Maltese trading companies. The corporate tax rate is 5-6%.
After opening an account in Malta, your offshore online casino will be able to connect directly to the merchant account for processing credit cards over the Internet.
Offshore internet casinos in Malta will be much more expensive than in one of the Caribbean countries, but it is much easier to open a bank account for the Maltese company. That is why it is important to find a bank that will cooperate with the Costa Rican online casino.
Gambling license in Costa Rica
If a company needs to obtain a license, it is worth adding the following costs. Application for a license to operate an internet gambling site. Data processing licenses, these are licenses for gambling operations that operate in Costa Rica. All Costa Rican IP addresses must be blocked from accessing the site.
Offshore payments for online casinos
The choice is quite limited if you are setting up a company with a small capital. Finding an offshore bank for online casinos is as difficult as for e-wallets and cryptocurrencies (Liberty Reserve, Pecunix, PerfectMoney, SolidTrustPay, BitCoins).
If you are planning to establish a serious online casino startup, but cannot establish a company in one of the respectable jurisdictions, it is worth visiting all kinds of conferences and establishing connections just with the payment system providers. A good personal relationship will defeat the policy of a company that does not accept merchants of a certain direction.
Integration of payment systems
Convenience of deposit and withdrawal is one of the most important criteria by which users choose a site for gambling. It is desirable to connect to the site all the payment systems used by representatives of its target audience.
Some platforms already have ready-made solutions, with input and output systems connected. But in most cases, the owner of the resource needs to negotiate with payment providers himself. Some systems require an impressive package of documents, others are satisfied with only a gambling license.
Using bitcoin in online casinos
Another tool for gambling profits is bitcoin – a currency that opens up great opportunities in online gambling. For more information, see the webinar “Bitcoin Casino as a tool to profit” from the company CASEXE.
Integrate a reliable security system
The hunt for bonuses provided by online casinos for the first deposit has already become a popular type of online earning. Modern security systems allow not only tracking cheaters, but also obtaining a large amount of information about all visitors to the site.
The security system can be integrated into the platform or come separately.
Creating related sites
Gamblers live not only by the game, they like to share their experience, discuss slots and simply communicate. That is why it makes sense to create several side-projects, which will increase involvement and help to keep regular customers. At a minimum, you should think about creating a forum and a blog.
Some operators go even further – to create social casinos on separate sites (sites offering “play for free”) to attract new customers.
Social media work
Having your own communities or pages in popular social networks has already become the rule of etiquette. Moreover, regular posting of posts on behalf of the administration of the gambling establishment helps to create a positive reputation for the online casino.
The work on the image and reputation should be started as early as possible, social networks are a great platform for such activities.
Working with affiliate programs
The easiest and fastest way to attract customers to a new online casino is to use affiliate programs. But not all programs give the same result, some of them will ask too much money even for the player who has placed the minimum deposit. The right choice of partners and building relationships with them largely depends on the success of the project.
Other types of Internet marketing
A gambling site is just as much an online project as an online store, a news resource or an entertainment portal. The same technology works as in other e-commerce sectors. Even the major search engines allow you to place contextual advertising online casinos, but under certain conditions.
“Promotion” gambling project is different from the promotion of an ordinary website. There are secrets and tricks that can reduce costs and improve the effectiveness of advertising.
Ground advertising
The volume of developed Western markets, such as the UK or Italy, is many times greater than in Eastern Europe or Latin America. But competition in these markets is also very high. Young and aggressive operators are fighting for clients not only online, but also offline. Of course, this kind of advertising is expensive, but with the right approach, the effectiveness justifies the money invested.
Creating a customer service desk
Gamblers, at the very least, want to enjoy the game itself. Unfortunately, even the best software sometimes fails. A player may not understand a nuance of the interface or encounter problems with the payment system. That is why a gambling site cannot do without friendly and reliable support service. The speed of problem solving is one of the most important indicators of the quality of the site.
Working with high rollers
Online casinos, like land-based establishments, receive most of their revenue from high-rollers – players who place large bets. Such a gambler can leave more money in one session than a thousand small customers. High-rollers know their worth, so they require special treatment. If a casino knows how to please high rollers, it has only a bright future ahead of it.
Working with loyal customers
The player makes a deposit, then plays for a while, then he runs out of money. In upset feelings he leaves the online casino. But if the administration of the institution manages to influence his mood, the player is sure to return.
Attracting a customer in the online gambling industry can be very expensive, but not all players create large deposits. Therefore, in order for the establishment to be successful, you need to constantly work to increase player activity and encourage them to return to the site on a regular basis.
Now you know how to open an online casino or betting company on the Internet.
