The online gambling market is definitely a profitable Industry. One of the ways one person can make a good profit from the Industry is running an online casino site. But like every business, different things must be considered before starting up. One of these things to consider is the starting up cost. So how much does it actually cost to start a gambling site?
License fee and cost of legal entity
Securing a gambling license is one of the most important things needed for starting a gambling website. The licenses owned by your gambling site give it the right to offer its services to the different parts of the world. It determines the parts of the world where the platform can be accessed and used by customers.
However, to be able to secure the license, you have to first register as a legal entity. This will also help you in opening the right type of bank account for your business and entering into a partnership with software providers and payment gateways. It is best to register as a legal entity in the country where you secure your gaming license as this helps to reduce cost.
Countries with popular gaming licenses used by most online gambling sites include the UK, Isle of Man, Malta, Curacao, Gibraltar, and Antigua. It costs between $650 to $3400 to register as a legal entity in these countries. There may also be additional fees like the cost of hiring a local lawyer and renting an office.
If you are already registered as a legal entity, all you need is to acquire a gaming license that can cost between $15,000 to $40,000 depending on the nation where it is gotten from.
Gaming Software
After securing a license, you also need a gaming software to run on your platform. The software on your platform determines the availability of games. Generally, most gambling site feature software from different providers. This helps them to offer hundreds and even thousands of games.
The price for the software package usually depends on the amount you agree to pay as the royalty fee. The royalty fees are usually between 15% to 40% of the profit. Most software packages would cost over $5000 to set up initially. The price is also affected by the number of games you want and the configurations you need.
Website
This is a very important part that you must pay attention to. Your website must be well programmed and designed. You also have to consider the software to create and manage the website.
You may need to hire experts to help you with this and it could cost you between $1000 to $5000 to develop the website. It may even cost more depending on the features you want on the website.
White label solution
This offers you a cost-effective method to get your gambling site within a very short time. A white label solution is a process of using a platform developed by another company to offer your gaming service. This means you get a ready-made website, with license, software, payment methods, and other requirements. All you need to do is manage and market the website. Then you pay the solution providers a startup fee plus a percentage of your revenue regularly.
Once you choose to go with the white label solution, you can ignore the first 3 steps listed above. Making use of a white label solution cost around $12,500.
Marketing
You have to market your site extensively to gain more users. However, the cost of advertising on Google, Facebook, Instagram, and Youtube is usually high for gambling platforms. You may have to spend between $20,000 to 100,000 monthly to promote on these platforms. A cost-effective way to market your website is to reach out to review sites and make a review of your site. With a quick google search, you will find endless review sites where players can compare Indian online casinos.
Support
To run a gambling site, you need to have a support team. The support team will be responsible for attending to queries from users via live chat, phone calls, emails, and other methods. Depending on your budget, you can hire or outsource. The cost of support staff may be around $200,000 but you may pay less if you operate from a country with a cheaper cost of living.
Break down of costs
Starting up an online gambling site is certainly a good investment but it could be costly. Opting for a white label solution seems to be the cheaper way but you have to keep paying royalties. To build from scratch, you will need at least $21,700 to start. You may also need up to $54,000 or more, depending on the options you go for. Apart from the startup cost, you have to set aside around $250,000 for marketing and payment of staff monthly.
