How to Start Your Own Online Casino and Poker Gaming Business
Did you know that the online gambling business is currently one of the fastest growing business categories in the world? The popularity of online gaming is increasing rapidly and this year has seen significant growth in Europe and Asia. In China and Malaysia, there are twice as many online gamers as online shoppers. Some 43% of Chinese Internet users play games online, while only 16% report shopping online.
Revenue in the online gaming business grew from just $800 million to over $2 billion in 1999! By the year 2010, it is estimated that the online gaming industry will exceed $16 billion in revenue! London-based Merrill Lynch analyst Andrew Burnett says online gambling could generate more than $150 billion in revenue by 2015.
Until recently, small entrepreneurs had no chance to break into the gaming industry due to huge capital investments, gaming license acquisitions and legal bureaucracy. The Internet removed all obstacles. Now you can own and promote your own online casino, sports book and multiplayer poker room gaming business and generate income you have only dreamed of.
There are 3 ways to start an online gaming business:
1) More Expensive – Design and implement all the betting software for an online casino, sportsbook, and multiplayer poker room that could cost you millions of US dollars. You will also need to obtain a gaming license to run your online gaming business, which requires approval from most governments. However, you will have full control of your betting site and full knowledge of the source code of your betting software. Also, no royalties are paid to a gaming software development company.
2) Average: Become a licensee of an online gambling software provider. This is a much less expensive option for starting an online betting business and you will receive all the betting software and sometimes even the necessary equipment. It is also the most popular choice for both licensed ground establishments and contractors. Costs range from $30,000 to $350,000. Average license fees are around $150,000 (this usually includes marketing costs). In most cases, a royalty is paid to the gaming software provider as a percentage of the monthly “take” or “drop” (gross profit). Typically, the gambling software provider has the payment processing (merchant account providers) already set up for a fully turnkey operation.
3) More Affordable: Become a sub-licensee of an existing licensee. This is the least expensive option to start an online gambling business. Costs range from $5,000 to $60,000. The sub-licensee is responsible for all marketing and receives a lower percentage than a full licensee (2), because the royalties paid to the licensee are much higher.
To legally operate online gambling businesses, online poker room and casino owners turn to the sovereign governments of countries that allow online gambling and issue the appropriate licenses for gambling operations. . Casinos and poker rooms are registered as foreign gaming operations, and in turn, the respective countries earn significant license fees and tax-generated revenue.
As the use of the Internet spreads throughout the world, the online gambling business will continue to be one of the most profitable online business opportunities of the 21st century.