Many people think that the era of bricks and mortar casinos could be coming to an end.
The coronavirus crisis forced such facilities all over the world to close their doors and reopening safely has proven a problem. Coronavirus cases in Nevada were shown to be rising once more after Las Vegas casinos were recently given the green light to reopen.
If these casinos cannot reopen permanently, which could be possible, online gambling looks set to become increasingly popular in the coming months and years. This could mean launching new online casinos is tempting for a lot of entrepreneurs in turn.
A lot goes into being a top operator. In this article we are going to cover the cost of all the components that best of breed online casinos possess.
Read on for everything you need to know about the cost of starting an online casino in 2021.
Licensing and regulation
Probably the most important thing for anyone considering starting an online casino in 2021 is licensing and regulation. Without getting everything spot on in these crucial areas, gaining the trust of potential customers is going to be very difficult for a new brand in a competitive field.
Rules and regulations surrounding online casinos differ around the world, so it is vital to check the law for the country where you want to operate. Curacao, Gibraltar and Alderney are among the places where online casinos typically receive their licenses and they cost in the region of $15,000-$20,000. Low taxation is one of the top reasons why these places are popular.
It is likely to cost around twice as much money to obtain a license to run an online casino in the United States. Remember that online gambling is not yet legal in all states, which could restrict how much money can be made from launching a new online casino in America right now.
Building a top quality website
After dealing with licensing and regulation issues, businesspeople who are trying to set up a new online casino will have to turn their attention to building their new website.
The cost of a new website is hard to estimate as this work can be done relatively cheaply. But just as in many other industries, you get what you pay for. Investing in a high quality website from developers with a history of creating online casinos could pay off in the long run.
It is likely to cost $1,000 as an absolute minimum to set up a very basic online casino website. Realistically, it might cost several times this amount to launch a site that will impress users.
Additionally, entrepreneurs thinking about getting into the online casino business will have to consider marketing costs, such as search engine optimisation – or SEO for short. SEO helps to get a website noticed on search engines such as Google, bringing new people to visit a site.
High quality SEO work can cost hundreds of dollars every single month. Building a website is therefore not just a one-time cost as maintenance is an ongoing issue for a firm’s bottom line. Marketing is also expensive, so keep this in mind when budgeting for creating a new casino site.
Technical support and customer service
Online casinos cannot underestimate the importance of technical support. If something goes wrong with the site, it needs to be fixed as quickly as possible. This can be pricey.
Furthermore, customer support is a similar area where it is not possible to cut too many corners. Casino customers nowadays expect to be able to reach support agents 24 hours a day, seven days a week – even on major holidays.
While some online casinos these days try to run without offering customer support via telephone, this is still something that a lot of people prefer when joining a new site.
Outsourcing customer support is an option but, all told, it is likely to cost thousands of dollars every month to run this part of a new online casino site.
Once you have a basic online casino site in development, it is time to think about the gaming software that it is going to run.
Lots of different online casino gaming software companies are out there and available to pick from. Some casino sites opt to seal exclusivity deals, which means they only use one provider.
However, customers expect to be able to play a large range of games at an online casino. It may therefore be necessary to get a number of different gaming software companies on board. Costs vary a great deal in this area, so leave plenty of space in your budget for software work.
It is difficult to put an exact number on the cost of starting an online casino in 2021. But it is clear this is not an endeavour to embark upon if a budget is tight. After all, in most businesses it is necessary to speculate to accumulate. But total costs may well run above $1 million.