How to Start an Online Casino: What Do You Need to Know?

Online gambling has always been one of the most lucrative and desirable domains for business owners, regardless of their experience in the field.

To open a successful online casino that benefits its owner and brings joy to its players, a few key steps require your attention.

As an online casino software developer and provider, kodedice is glad to share its experience. Hopefully, our expertise helps future online casino owners (operators) avoid common mistakes and start a successful online casino business.

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Key Steps to Starting Your Online Casino Business

One of the most crucial steps when launching your online casino business is proper and thorough planning. Writing a detailed step-by-step business plan for a full year of operation is a great idea.

Not only does it provide you with a clear agenda and strategy, but it also helps reduce stress. It's much easier to complete one step at a time and track your progress, rather than focusing on many tasks at once.

Here are four key steps you need to take to launch your own online casino successfully

Analyse the Online Casino Market

Online gambling has grown significantly in recent years, particularly since the pandemic. Both sports betting and online casino gambling have become increasingly popular, similar to many other sources of online entertainment.

The online gambling landscape offers significant revenue opportunities, even amid global economic and political shifts. Online casinos also demonstrate superior accessibility compared to traditional, land-based casino experiences.

Supporting this view, Statista's data forecasts a user base expansion in the online gambling market to 233.7 million by 2027, with expected revenues reaching USD 124 billion. This growth trajectory highlights the potential of the iGaming industry and its market size.

Acknowledging its promising future, many governments are actively working to regulate and legalize the online gambling sector. For current and aspiring operators in the online casino space, these forecasts signal strong, affirmative market growth and expansion.

Even though most online casinos operate in the dot-com domain, players are still physically located somewhere. Offering your online casino to players via electronic means still falls under certain laws and obligations, which leads to the next point.

Licensing and Legal Aspects

Similar to traditional casinos, online casinos must also be licensed. If you're planning to start your own casino, selecting a gaming license is essential. These licenses are issued by various countries or jurisdictions, and the iGaming community differentiates between national and international gambling licenses.

Each type of license has its own advantages and disadvantages, including cost, application time, and reputation. Typically, obtaining a gaming license can take anywhere from a few months to a year, such as at least six months in Malta.

Recently, there has been a significant regulatory shift in the online gambling industry, moving away from international gambling licenses (like those from Malta and Curacao) towards country-specific regulations. This shift encourages operators to adapt their brands and offerings to regulated markets.

International licenses are evolving in response to these changes. For example, Curacao is establishing a new regulatory body and overhauling its system to improve security and compliance. Similarly, Malta is updating its operations to focus on sustainable practices and responsible gambling.

How do operators choose an online gambling license? Selecting the right license for an online casino or sportsbook is more complex than ever. It's not just about meeting operational requirements; it involves aligning the license with your business's long-term goals, target markets, and growth plans.

Given the current industry trends, relying on a single license for the long term seems impractical. It's crucial to assess risks, strategically plan your brand's journey, and collaborate with software tech providers that align with the market's specific needs and regulatory landscapes.

At Kodedice, we understand these complexities and offer tailored solutions. Our Online Casino Platform comes in several packages:

• Turnkey (Standalone) Casino Solution: Ideal for operators who already hold licenses and certificates, providing the software, infrastructure, and iGaming support needed to launch a fully independent casino.

• Crypto Casino Solution: A secure software solution designed for casinos targeting cryptocurrency audiences.

• White Label Casino Solution: Perfect for a quick launch, offering everything, including an international license.

  
  

After choosing the jurisdiction, the next steps include registering a legal entity (a gaming company), opening a bank account, and making agreements with payment system providers to complete the legal and financial infrastructure setup.

Choosing Casino Software

Like any other web application, an online casino relies on software. Numerous technology companies, including Kodedice, develop the software and systems that drive an online casino. When looking for a dependable casino software developer, it's important to assess the software based on your business needs.

In addition to offering an appealing casino frontend design and popular games for players, a high-quality casino product requires more than just excellent code. A truly robust casino software platform must also be modular and adaptable to various market requirements.

Some of the mandatory casino software modules include components:

• Content Management System (CMS)

• Player account management system (PAM)

• Bonus and promotions module

• Game management tools

• Payment system management interface

• Reporting module

• Admin role settings

• Affiliate management software

• Anti-fraud module and systems

• Retention email strategy and tools

Regular software and game updates, hosting, and technical support should also be included in the provider’s package. Professional suppliers ensure full technical support post-launch.

While a comprehensive software package that includes all these components may be more expensive, modular software is a worthwhile investment. It provides you with a reliable partner ready to support you throughout the entire project life cycle. Opting for a cheaper solution, such as a one-off casino script, might lead to higher costs in the long run.

Casino Marketing Plan

An effective marketing strategy is essential for running a successful casino. Competitor research is a crucial step in this process. It will give you an overview of the leading casino brands, their user acquisition and retention strategies, and the opportunities you have to match or surpass them.

Understanding your competition and creating an irresistible offer for players are key to success. Benchmarking against competitors is highly beneficial for online casino success and, importantly, it is free. When planning your marketing strategy, adopt the best practices in promotion, advertising, and brand development.

For companies transitioning from a land-based gaming business to an online casino, it is vital to attract existing clients to the online platform. An integrated marketing strategy for both online and offline brands can be highly effective.

If you have a background in online marketing, user acquisition, growth marketing, or affiliate marketing, you likely know where to start with your online casino marketing strategy. If not, consider partnering with companies, agencies, or individuals who have the necessary experience and expertise.

Lastly, consider your future bonus policy and affiliate program. These are crucial for player acquisition and retention and should not be overlooked. Ensure that the selected software provides the technical capabilities to implement your strategy effectively.

How Long It Takes to Launch an Online Casino

The time frame for an online casino launch depends on both the business owner and the software provider. Usually, it takes up to 3 months for the provider to set up the software and create a unique casino website. This includes setting up the games, adding the bonus policy settings and possible individual features, as well as designing the look and feel of the brand.

Your online casino website should, first and foremost, be informative and visually appealing to visitors. Make sure the site is carefully designed in a way that is easy to navigate for anyone. 

The business owner and their team can speed up the launch process by providing timely feedback to the casino setup team. Remember, your requirements can be taken into account more quickly if they are discussed in time.

Apart from that, the business owner must timely address the important issues discussed above:

• Obtaining a gaming licence

• Opening a corporate bank account and merchant account

• Making agreements with payment system providers

Some online casino software providers can offer a white label casino solution that covers all the checkpoints. This option lets operators launch to market in a short timeframe. 

For iGaming business owners who already have a casino licence can simply use the software and hardware infrastructure to launch their online business.

Operating an Online Casino

The secret of the most popular and successful online casino is not about the top-notch design or thousands of games. The best online casinos are often simple in design and contain 500 games on average at the beginning. The secret is in a responsible marketing strategy. 

The online casino market is an extremely competitive one: first, it is very hard to break into, and then it is even harder to take a firm stand. As a rule of thumb, a company has to go the extra mile to get ahead of the competition. Below is a list of points that are vital for any online casino that is planning to be prosperous.

Positioning

Gather a professional marketing team and develop strategy for your goals (business, company, brand) and mission. Determine how you are going to be different from the competitors, what unique features your casino will have, and what steps you are going to take further.

Quality Games

You can start your casino with a limited number of game providers, with a focus on games based on HTML5 technology. This technology allows users to enjoy rich graphics games and enhance the overall experience of playing casino games on mobile devices.kodedice offers game content from well-known providers, such as Evolution, Pragmatic Play, Games Global and more. Learn what the best casino games are for the markets you plan to work in.

Pre-launch Advertising Campaign

Before you even start a casino, you need to advertise it to inspire your potential customers to wait for its launch; use all the channels at your disposal: affiliate networks, online ads, offline presentations, media publications, etc.

Ongoing Promotional Support

The exceptional growth that online casino providers experienced during the pandemic, where they attracted audiences with minimal investment, is no longer the norm. In today's market, continuous player acquisition is essential for growth. It's crucial for operators to implement ongoing promotional strategies to ensure this steady influx of new players.

Make sure to experiment and see what works best for your player base. Be sure to plan ahead and always try to offer something new to your players.

Player Acquisition, Support, and Retention Strategy

Establish an efficient support service or 24-hour call centre which your players can address at any time. Take care of your players by making navigation through the website: create ‘How to’ sections or FAQs, write manuals on how to play the games, provide demo versions, and make everything clear and understandable.Develop a bonus system, make auctions and entertain and reward your players for their engagement.

Start an Affiliate Program

Develop contacts with affiliate partners, who can use their online resources to promote your online casino. `To manage such partner relationships, operators use affiliate management software. An affiliate platform is undoubtedly the best tool for expanding your affiliate partner network.

Additional Features

Modern online casinos often come as multi-functional platforms that not only offer casino games but also sports betting and other features. Here are some of the most popular additional features that you can think about adding to your online casino platform. 

Crypto Casino

Forward-looking online casino software providers offer cryptocurrencies as well as fiat currencies. Payment systems are key for high-quality player service.

Online casino owners all over the world appreciate the advantages of crypto casinos, such as increased player loyalty, fast payment processing, and many more.

As an acknowledged crypto casino expert, kodedice would like to recommend all potential Bitcoin casino owners to get a clear understanding of the cryptocurrency, research the peculiarities of crypto gambling, and learn how transactions work by making a couple of bets at an existing casino. 

Jackpots

Jackpots have always been closely associated with casinos in one way or another. They are no exception when it comes to online casino games. They are loved by players for the potential of big rewards and by operators for the engagement they drive.

Players get the chance to compete for bonuses, physical prizes, and loyalty points. Running jackpots can be done through custom tournament tools or additional jackpot modules that are integrated with the casino platform.

Some of the advantages of jackpot implementation include:

• Increased player LTV

• Increased bet amounts

• New player acquisition

• Existing player retention

• Increased revenue

  
  

Sports Betting

In the past few years, a considerable number of online casinos integrated sports betting into their platforms. It has been proven that the combination of a casino and a sportsbook is extremely beneficial, as it boosts the overall project performance and greatly increases user engagement. 

Integrating a complete sports betting platform, like the kodedice Sportsbook, has many benefits. With this feature, players are able to place bets on multiple sports like football, basketball, tennis, hockey, and many more. It also lets them watch live sports broadcasts on your website, get a chance to receive special bonuses, and build loyalty with your brand.

In general, players are more likely to stay loyal to a platform that meets all of their needs and allows them to do everything at once – play casino games, win jackpots, and bet on their favourite sports. 

How Much Does It Cost to Open and Run an Online Casino?

Once you have defined the costs for legal matters, software, and marketing, it's time to plan your budget. For startup companies, it's best to set a budget for at least the first year of operation. Experienced companies can plan their budget for several years in advance.

It's important to plan your budget before setting up the online casino website, not after. New entrants to the market typically face higher initial costs compared to seasoned operators. This is largely due to the advantages that established companies have, such as an existing customer base and a recognizable brand identity, especially for those transitioning from a brick-and-mortar to an online model.

For a new business, thorough financial planning is crucial. Before taking significant steps like launching a website, it's vital to carefully balance your finances (P&L statements are a good start). This risk management step ensures a more successful and informed launch.

While there is no simple answer to how much you will pay for your online casino launch, Kodedice has surveyed operators about how they divide their budget. Generally, your expenses will fall into two broad categories: pre-launch and post-launch stage expenses.

For example, the largest pre-launch expenses include software purchase and setup (25-35%), marketing spend (15-20%), and license acquisition (10-30%). This early stage of development requires more attention and, consequently, more investment.

During the post-launch stage, it is crucial to allocate half of the funds to casino marketing and promotion to attract new players.

Below is an approximate expense breakdown that a future casino owner should consider while developing a detailed budget to open and run a casino.

Frequently Asked Questions: How to Open Your Own Online Casino

1. How can I figure out if a business like an online casino is right for me?

While the idea of starting an online casino can be appealing, it's vital to approach this decision with a realistic mindset. The iGaming market is dynamic and holds great potential, but it's also highly competitive. It's a hard truth that many projects in this field don't survive.If you're uncertain about venturing into this industry, it may be wise to delay your launch and invest more time in understanding the niche. Here are some key considerations:

• Market Research: Understand the dynamics of the iGaming industry.

• Realistic Expectations: Be aware that while the market is promising, it is also fraught with challenges.

• Team and Partnerships: Ensure you have, or can acquire, an experienced team and reliable partners.

• Effective Promotion: Learn about various online marketing strategies that can help promote your project.

• Risk Assessment: Be prepared for the high level of competition and the possibility of setbacks.

Embarking on this venture requires a sober assessment of your budget, experience, and resources. With thorough preparation and a strategic approach, you can increase your chances of successfully establishing your presence in the market.

Remember, be pragmatically optimistic.

2. Do I need to hire staff?

As said earlier, absolutely. For efficient project management, your core team should include:

• General Manager/Project Owner: The linchpin who steers the entire project.

• Partner Manager: Nurtures and manages partner relations.

• Content Manager: Directs all content-related initiatives.

• Marketing Analyst: Dissects market trends and casino data to inform marketing strategies.

• First Line Support Team: Fundamental for player support (kodedice offers this service).

• Retention Manager: Dedicated to cultivating player loyalty (also provided by kodedice).

• Anti-Fraud Team: Safeguards against fraudulent activities (provided by kodedice).

This foundational team structure is crafted to propel your project towards effective launch and management.

3. How do I draw traffic to the online casino?

The traffic acquisition strategy is multifaceted and can include, but is not limited to:

• Search Engine Optimisation (SEO): Optimising your website to rank higher in search engine results.

• Search Engine Marketing (SEM): Harnessing the power of paid search engine ads.

• Affiliate Marketing: Collaborating with affiliates for promotion and broader online reach.

• Collaboration with Influencers: Connecting with popular personalities (for example, streamers) to reach a wider audience.

  
  

4. What is the difference between the Turnkey and White Label solutions?

The kodedice White Label Solution is a comprehensive package that includes the hardware infrastructure, software platform, and licensing, allowing you to quickly enter the market. Ideal for those seeking an out-of-the-box casino solution.At the same time, the Turnkey (Standalone) Casino Solution is best suited for individuals with experience in running online casinos and holding their own licence. We provide the software platform, hardware infrastructure, and essential support services. 

Launching Your Online Casino With kodedice

kodedice focuses on developing innovative software for online casinos, providing a wide range of solutions from a robust Casino Platform, games hub, affiliate marketing software, and 24/7 support. 

kodedice is all about:

• Expertise: 15 years of experience in iGaming, supporting 860+ online gambling websites.

• Service: Award-winning account management backed up by accolades for Best Customer Service.

• Innovation: in crypto betting.

• Security: Focus on cybersecurity and data protection; ISO 27001 compliant. 

The kodedice Casino Platform includes a variety of modules, features, integrations, and licence options. 

The Casino Platform's dedicated back office with a set of innovative technologies gives you complete control over all areas of your online casino business. It is integrated with the kodedice Sportsbook, Game Aggregator, and Jackpot Aggregator, which can make your online casino stand out among competitors.

As a Final Note

Managing an online casino is indeed challenging, but with timely resolution of legal and financial issues, the selection of quality software, and a robust marketing strategy, it can be a rewarding experience for both operators and players.

By following the steps outlined above, a new online casino can develop sustainably and outperform the competition. Good luck!