Gambling has been around for thousands of years, but it's worth clarifying modern terminology. So, on the one hand gambling is the organization and conduct of gambling, and on the other hand - the sphere of providing services to all market participants. The word "gambling" means the entire industry of gambling in general, and the term "iGaming" is used only to refer to its digital sector.
As in any business environment, gambling companies operate in two verticals. The B2C sector includes operators - owners of gambling projects that provide their services to players. Gambling projects come in different types. For example, online casinos (you can click here to register in one of them), land-based casinos, social casinos, betting shops, online betting platforms and online poker rooms.
The B2B sphere focuses on providing services to businesses. It includes more participants than the B2C sector. These include:
- Software providers (online casino and sportsbook platforms, modular solutions) and hardware;
- Creators of gaming content for online casinos;
- providers of payment solutions;
- affiliates attracting traffic to projects through affiliate networks;
- banks that play a key role in combating money laundering;
- regulators who monitor compliance in their jurisdictions;
- organizers of industry events where industry participants get to know each other and establish business contacts.
It is important to understand that the number of business projects of one operator is limited not only by the amount of its resources, but also by special legislative measures, including the number of licenses issued by the regulator. In some jurisdictions an unlimited number of projects can be managed with one license, while in others only one.
For these and other questions of investing in the industry, it is better to contact companies that specialize in business consulting. They help make it easy to get into the gambling industry and manage your companies as efficiently as possible. Or you can learn it by yourself by looking at various casinos like Casinonic casino review.
Gambling as an ace up your sleeve
If you are still in doubt about the investment appeal of the gambling business, an objective audit of the sphere's advantages will help cast aside any doubts.
First of all, this area of the entertainment industry is growing very dynamically, mainly because of COVID-19 and speed of digitalization of our lives. Thus, according to analytical company H2 Gambling Capital, over the next five years, the global iGaming revenue will be about 150 billion dollars. To estimate the speed of growth, take 2021 as a starting point, when the figure was at 90 billion dollars. Impressive, isn't it?
Second, new gambling markets with clear legal regulations are constantly emerging. As more and more countries realize the potential of the gambling industry for their national economies, the geography of suitable jurisdictions for business is constantly expanding. This allows operators not only to occupy a niche among the first, but also conduct business without risks.
Thirdly, the high profitability of the industry generates a flow of potential investors willing to invest in innovative projects and technologies. That's why it's easy to find financial support for the beginning operator to implement his business ideas.
Fourthly, the volume of the potential audience is inexhaustible. Just imagine how many people on the planet turn 21 every day. Of course, do not forget about the principles of responsible gaming, but the fact remains - the demand will stay and rise!
How to open an online casino?
According to experts, the best form of investment for entering the gambling industry is the launch of an online casino platform. Indeed, compared to land-based projects, an online startup requires less initial investment due to the absence of fixed operating costs in the form of rent, equipment purchase and maintenance of numerous staff. Management of online casinos is similar to other e-commerce companies in terms of business processes, i.e. the work is carried out remotely in a global market, limited only by the requirements of specific jurisdictions.
What does the business plan for starting an online casino look like?
- Choose a jurisdiction and get a license.
Familiarize yourself with the conditions and cost of the license, which will depend on the market of operation. In addition to license fees, consider the taxation and license renewal conditions and the timeframe for obtaining the license.
- Choosing a contractor.
Find a reliable partner - a software provider who will either develop a platform from scratch or integrate individual modules into an existing project. For beginners, it is better to consider complex solutions because it will save time, efforts, and money.
- Choice of content.
Research the content developers, paying special attention to their popularity in certain regions and what licenses they require from operators. The best solution is to find an aggregator contractor, because with a single API you can quickly integrate games of the most popular developers, signing one contract instead of 20-30.
- Choice of payment system.
Give preference to payment systems that offer the maximum number of payment methods and currencies. But do not forget that some jurisdictions have requirements for the betting and payment process as well, which must be met.
- Team building.
Downsize to a marketing and customer support department by turning to a software vendor for a complete solution. If you do everything yourself, however, you can't do without a development department and other technical specialists.
- Marketing Plan.
Make a short-term and long-term marketing strategy. Attract new clients through advertising and affiliate programs and retain existing ones with the help of loyalty programs, bonuses, tournaments and promotional campaigns from the developers.