Online casinos are rapidly growing in popularity, creating opportunities for entrepreneurs who are interested in iGaming and online gambling experiences. Although this business model presents some challenges due to legalities and strict industry standards, it can be a profitable venture when approached correctly.
In this article, we will share everything you need to know about starting an online casino business. We’ll talk about the general appeal of creating an online gambling business before diving into the nitty-gritty of starting an online casino of your own. We will cover key considerations for starting this type of business, the step-by-step process to bringing your online casino to life, and more.
The basics of online gambling businesses
As we mentioned, the growth of iGaming is inspiring many ambitious entrepreneurs to enter the online gambling market. The global online casino market is anticipated to hit a value of $153.57 billion by 2030. This is nearly double 2024’s reported market value of $78.66 billion.
With this tremendous forecasted growth, entrepreneurs have ample motivation to create engaging online casino experiences. Whether the vision is to create a basic platform for playing digital slot machines or more involved live dealer experiences, the opportunities are endless in the iGaming space.
What you need to do before starting an online casino
Starting an online casino business is quite the undertaking. With that said, there are a few considerations to work through before you dive in. Here’s what you should do.
Identify your target audience
Before you embark on your journey to start an online casino business, it’s essential to understand your target audience. Do some market research and determine if there’s a specific segment you’re interested in targeting.
Define your audience based on their interests, geographical location, demographics, income, and other relevant factors. Getting crystal clear on who you want to target will help you determine the viability of your business and guide you every step of the way.
Consider the experience this audience is seeking and determine if you have the means to meet those demands.
Research online casino regulations
After you’ve determined who your target audience is and how you want to serve them, it’s time to figure out how to do it within local gambling regulations.
It can be beneficial to work with a lawyer who is well-versed in the local regulations governing casinos and gaming. This way, you have someone to ensure that all the Ts are crossed and Is are dotted, so you don’t have any issues when it comes time to launch.
Create a budget for startup costs
Next, you’ll need to start budgeting for startup costs. The cost for designing, developing, and launching your online casino depends on its complexity.
Some startup expenses you can expect to pay for include:
- Technology
- Labor
- Legal fees
- Marketing
Once you figure out how much you’re going to need to get started, you need to figure out how you’re going to come up with that money. You can cover your startup costs in several ways, including self-funding, crowdfunding, seeking investors, or taking out a loan.
How to create an online casino: step-by-step
Now that you’re more familiar with the basics of starting an online casino business, let’s dive into the step-by-step process of creating one of your own.
1. Create a plan
The first step to starting your own online casino business is to make a plan. You’ve likely done quite a bit of research and brainstorming to prepare for this process, and now’s the time to put together a more concrete idea of what you want to accomplish and a roadmap of how you’re going to get there.
At this point, you’ll want to determine what kind of games you’ll offer so you can invest in the right technology for bringing them to life. Some popular types of online casino games include slots, table games, and live dealer games. Some online casinos also offer live betting experiences.
2. Secure gaming licenses and legal compliance
As we mentioned, understanding the legalities of starting an online casino is absolutely crucial before getting started.
At this stage, you should start applying for any licenses you’ll need to operate your online casino above board. Keep in mind that this process can take considerable time, as there are often multiple steps to complete. That said, the guidance of a lawyer certainly comes in handy here, as well.
3. Design the UX/UI
Next, you’ll need to design your user experience (UX)/user interface (UI). At this stage, you’ll thoroughly understand every destination within your online casino and its functionality, allowing you to assemble the flow of the user experience.
It is worth investing in the support of a UX/UI designer because, even though you have an idea of how things should flow, an experienced specialist will be privy to important details, both large and small, that you may not have considered.
Depending on the size of your operation, it may be wise to outsource this step to an agency or team of contractors. However, having someone in-house who stays on to help with regular updates to your platform is also wise.
4. Choose the right iGaming software provider
As you design the user experience, consider iGaming software providers. Knowing what games you want to offer is helpful, as it allows you to choose a solution that supports all your requirements.
If you’re offering live dealer games or other experiences that require live streaming, you’ll also need a streaming solution, like Dolby OptiView. With the support of real-time streaming technology, you can create life-like experiences for your viewers, no matter where they are located.
5. Develop your online casino platform
Once the design is mapped out, it’s time to develop the experiences. This can be outsourced or handled in-house. However, like UX/UI design, your approach will depend on the scale of your operation and the resources available to you.
To provide the most optimal user experience, it’s essential to develop a cross-platform experience that allows players to access the casino from both their mobile devices and computers. At this point, you’ll also integrate any technology to power your casino games or any interactive streaming experiences.
6. Set up secure payment processing
A vital layer to developing the online gambling experiences is setting up secure payment processing. There are a ton of transactions coming in and out of online casinos so ensuring that everything is protected is absolutely key.
Some common security measures for payment processing include fraud protection, encryption, tokenization, and authentication. You will also need to ensure that your setup meets the compliance and standards of any specific payment methods you want to accept, such as those of certain credit card companies.
7. Launch the experience
Once everything is configured and the experience is working as intended, it is time to launch your online casino. Some businesses opt for a hard launch, where the experience is immediately open to the public. Others opt for a soft launch, rolling out the experience on an invite-only basis.
If your online casino is intended to accompany a brick-and-mortar one, an in-person launch party can be a great way to create hype. Giving your in-person patrons online gambling options leads to an easy conversion.
We’ll talk about some key ways to market your online casino business next.
How to market your online casino business
To make your online casino business a success, you need to tap into marketing practices that will get you in front of your target audience.
The digital nature of online casinos makes digital marketing an ideal approach for promoting this kind of business. That said, let’s take a look at a few of the top digital marketing techniques for promoting online casino businesses.
Content marketing and SEO
Leveraging content marketing and SEO can help you establish brand recognition and attract visitors to your online casino.
If you’re not familiar, content marketing is a digital marketing technique that involves creating content on your website or other digital real estate with the intention of providing value or solutions to users.
SEO, which stands for “search engine optimization,” is a specific type of content marketing that involves creating content tailored for search engines. This involves creating content around keywords that your target audience would be searching for when looking for an online experience like yours.
Paid advertising strategies
Paid ads are another excellent way to reach your audience, as they allow you to get very granular targeting. You can run ads on search, social media, or even in print.
What’s nice about digital advertising is that most advertising platforms are equipped with analytics tools that give detailed feedback to help you understand what is working and what’s not.
Influencer marketing
Influencer marketing allows you to tap into the audiences of creators and public figures whose brands align with yours.
Hiring these personalities to serve as brand ambassadors and promote your online casino will help you get more people through your virtual doors. The association with highly regarded public figures will create trust for your brand, making it easier to convince your audience that your online casino should be their go-to choice.
Affiliate marketing programs
Affiliate marketing is a valuable marketing technique that allows people to earn a kickback by referring new business to your online casino. The payment can be made in cash or via credits to use on the platform.
Some affiliate programs are invite-only, so you could make it part of your influencer marketing strategy. Alternatively, you can make it available to anyone interested. This can also tie into your loyalty program since happy customers are the best advertisement.
Managing and scaling your online casino business
Running a successful online casino business starts with a successful launch, but it requires ongoing efforts and initiatives to grow the operation into something sustainable and profitable. Fortunately, getting strategic with your longer-term plan and putting in continuous effort can help you achieve your goals. Here’s what you can do.
Customer support and player retention
The number one way to scale your online casino is to create a pipeline of happy customers who are loyal to your platform. You should ensure that your customers know they are valued by providing prompt support to troubleshoot any issues that arise.
Continuously showing your customers that you value them helps make your online casino their go-to destination for all their iGaming needs. Happy players also share products they like with their friends, so by nurturing your customers, you set yourself up for free advertisement.
Tracking KPIs
Data analytics play an essential role in the success of an online casino, as well. Since this is a digital platform, tracking player behavior is easier than ever to see what parts of the experience are successful and which parts are not.
With access to these insights, online casino operators can make informed decisions for the future of their businesses. Knowing what the audience is responding to (and even who the audience is) helps operators better allocate their resources and improve their profitability.
Expanding game options and features
As you scale your online casino, you’ll need to add new games and update the features of current games to maintain an optimal user experience. Updating your platform but optimizing and upgrading your features is a great way to show your customers that you care. It tells them that you are listening to their feedback.
Just like in-person gambling, many people seek out certain games when they “visit” an online casino. You can expand your addressable market by making more games available to players.
Final thoughts
Online casinos are an excellent business venture for those who are passionate about creating immersive iGaming experiences. The planning and preparation for this type of operation can be pretty intense, but with the right technology, it’s possible to create something functional and profitable.
Looking for a real-time, interactive streaming solution to support your iGaming experiences? Dolby OptiView is here for you. Our end-to-end streaming solution offers everything you need to host live dealer games, create micro-betting experiences, and more.
Contact us to discover how our solution can help you enhance your iGaming experiences and elevate your online casino to the next level.
